Page 27 - Grapevine FY22 Adopted Budget v2

Section D, Number 3.1 of the Grapevine Administrative Policy Manual outlines the Vehicle &
Equipment Replacement policy, and establishes a standard schedule of vehicle and equipment
replacement intervals. Under normal budgeting constraints, it is advantageous to replace vehicles
and equipment at specific intervals. Replacement in accordance with this schedule provides the
users with the most efficient and reliable vehicle and/or equipment as possible. Fleet replacement
procedures consider the most economic replacement point at which the vehicle has the greatest
salvage value and has been depreciated to its fullest.

Investment Policy

It is the policy of the City of Grapevine that, giving due regard to the safety and risk of investment,
all available funds shall be invested in conformance with State and Federal Regulations, applicable
Bond Resolution requirements, adopted Investment Policy and adopted Investment Strategy.

Effective cash management is recognized as essential to good fiscal management. Aggressive cash
management and effective investment strategy development will be pursued to take advantage of
interest earnings as viable and material revenue to all City funds. The City’s portfolio is designed
and managed in a manner responsive to the public trust and consistent with this Policy.

Investments shall be made with the primary objectives of:

1. Preservation of capital
2. Safety of City funds
3. Maintenance of sufficient liquidity
4. Maximization of return within acceptable risk constraints
5. Diversity of investments

In accordance with the Public Funds Investment Act, the City of Grapevine’s investment strategies
shall address the following priorities (in order of importance):

• Understanding the suitability of the investment to the financial requirements of the City
• Preservation of safety and principal
• Liquidity
• Marketability of the investment prior to maturity
• Diversification of the investment portfolio
• Yield

In order to minimize risk of loss due to interest rate fluctuations, investment maturities will not
exceed the anticipated cash flow requirements of the funds. Specific investment guidelines have
been developed for the following fund-types:

• Operating Funds
• Construction and Capital Improvement Funds
• Debt Service Funds

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