Page 53 - Grapevine FY20 Approved Budget

Goal Result
Sustain existing program service levels Yes; No reductions in service
levels projected
Maintain General Fund balance of at least 20% annually Yes; FY20 projected ending
balance is 26%
th
Maintain competitive employee compensation at the 50 Yes; FY20 budget includes 3%
percentile of the market merit / 5% step pay increases
Adequate and stable street / facility maintenance funding Yes; FY20 budget restores full
funding of PCMF/PSMF
Cash funding of fleet, capital and technology equipment Yes; No debt issuance for fleet
replacements or equipment replacements
Cap debt service at 25% of the General Fund budget Yes; FY20 ratio is 19%

Use excess reserves to invest in “Quality of Life” capital Yes; Estimated $3 million
projects investment in FY20

Current Economic Trends Impacting Long-Range Forecasting

Although some economic indicators point toward an upturn in the national economy, many
uncertainties still exist within the financial realm. The City’s initial forecast, completed five
years ago, assumed a relatively stable economy, low unemployment, and moderate growth in
both sales and property taxes. However, with an extended lag in retail sales, combined with
elevated foreclosure rates and a slowdown in job growth within the DFW Metroplex, the task of
long-range planning has become much more important, as well as much more difficult.

Within the last twelve months, sales tax collections citywide increased by $3.4 million (6.1%),
which followed a $2.1 million (4%) increase the previous year. Now three years removed from
the dramatic $2 million loss in FY17, sales tax are projected to increase at a more moderate pace
of 2% annually through the three-year outlook.

Another indicator of an improved local economy is hotel occupancy tax collections. FY19
collections were down $437,000 (2.2%) from the prior year. However, FY18 collections were
up 5.7% over FY17. A roller-
coaster effect in occupancy tax
collections could indicate an
unstable business travel market.
Variances in hotel occupancy can
be directly related to the variances
in sales tax collections.

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