Page 9 - Grapevine FY19 Operating Budget

October 1, 2018

Honorable Mayor and Members of the City Council,

I am pleased to present you with the FY19 City Adopted Budget. This is a
maintenance budget that responds to current market conditions, fosters long-term
sustainability, and maintains current service levels.

The upcoming year is full of exciting new economic development activity. Perry’s
Steakhouse and the new Gaylord Texan hotel tower will have their first full year of activity.
The Grapevine Main Station, Hotel Vin, Salt Lick, Paycom, Silverlake, TexRAIL, and
Standrock are just a few of the projects that are under construction or scheduled to begin
construction during the next year. Strong economic development partnerships such as
these add jobs to our local economy and stimulate consumer spending. Although there will
undoubtedly be an increase in the demand on City services, the General Fund budget
absorbs these needs. The CVB, however, will increase its staffing level by four positions
(three shuttle drivers and one sales manager) to service the increase in activity created
largely by the additional hotel rooms and commuter rail.

General Fund

The General Fund increase by 1% year-over-year, and the reserve is projected to exceed
the 20% reserve requirement. The 20% requirement is critical to maintain because, if
revenues were severely hampered or ceased, it would provide the City with an emergency
fund to continue to service debt and provide critical services.

The Proposed Budget addresses several noteworthy areas. These include:

Henry Schein Performance Incentive $150,000
Partial Restoration of the PCMF Transfer 375,000
Fire Overtime 380,000

CCPD Transfer 820,000

State Mandated DFW Revenue Share 500,000
Employee and Retiree Insurance 1,100,000

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