Page 46 - Grapevine FY19 Operating Budget

Revenue and Other Financing Sources

General Government revenue is budgeted at $84.7 million, an increase of $3.3 million (4.1%) from
the previous year. The increase in budgeted revenue is primarily in charges for services, as
employee health insurance charges to outside funds are budgeted at a 10% increase from the prior
year.

Ad Valorem Taxes, or property taxes, are levied each October 1 on the assessed value listed as of
the prior January 1 for all real and personal property located within the City. Assessed values
represent the appraised value less applicable exemptions authorized by the City Council.
Appraised values are established by the Tarrant Appraisal District (TAD) at 100% of estimated
market value. Taxes are due October 1, immediately following the January 1 lien date, and are
delinquent after the following January 13. Delinquent taxes are subject to a 15% penalty and 6%
interest according to Texas state law.

The certified net taxable value (NTV), which includes a projected minimum value for all properties
pending disposition before the Appraisal Review Board, totals $8,730,311,903 and is reflective of
all taxable property in the City as of January 1, 2018. This represents an increase of $693 million,
or (8.6%) from the 2017 tax roll.

There are two components of the tax rate. The first component is for maintenance and operations
(M&O) while the second component relates to debt service interest and sinking fund (I&S)
requirements. Ad Valorem taxes for M&O are collected through the General fund. The City has
adopted a tax rate of $0.130614 for the General Fund, meaning 45.2% percent of tax collections
fund maintenance and operations. In comparison, last year’s M&O rate of $0.13474 represented
46.6% of tax collections. The total tax levy for FY19 is budgeted at $24 million. Ad Valorem
taxes represent 28% of General Government revenues.

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