Page 49 - Grapevine FY22 Adopted Budget v2

The assessed value of all taxable property is an important measure of the capacity of the tax base
to support present and future revenue needs, particularly in terms of debt obligations. The ratio of
net direct debt as a percentage of net taxable value is relevant for local governments that depend
on property taxes as the primary source of debt service revenues. The City’s 2021 ratio of net
direct debt as a percentage of assessed value is 1.21%.

Year Net Direct Debt Net Taxable Value Ratio

2004 $94,245,000 $4,894,958,382 1.96%
2005 $94,965,000 $5,243,478,637 1.81%
2006 $94,531,601 $5,230,966,070 1.81%
2007 $92,535,000 $5,815,838,701 1.59%
2008 $79,538,716 $5,954,088,371 1.33%
2009 $77,725,000 $5,829,604,089 1.33%
2010 $75,596,365 $5,864,643,146 1.29%
2011 $68,589,652 $5,912,257,208 1.16%
2012 $62,359,082 $6,082,785,223 1.02%
2013 $122,903,477 $6,246,787,751 1.96%
2014 $114,209,419 $6,593,129,832 1.73%
2015 $97,648,222 $6,303,722,379 1.55%
2016 $86,254,210 $7,274,810,676 1.18%
2017 $82,809,564 $8,037,334,886 1.03%
2018 $92,808,409 $8,730,311,903 1.06%
2019 $121,671,399 $9,285,556,518 1.31%
2020 $150,595,000 $9,411,012,077 1.60%
2021 $125,321,691 $10,351,254,676 1.21%

Debt Policy

The City’s policy is to use bond proceeds for capital expenditures only. Such revenues are never to
be used to fund normal City operations. The City Council has also set a goal of capping net general
debt service at 25% of the General Fund budget.

Net General Debt Service as Percentage FY19 FY20 FY21 FY22
of General Fund Expenditures Actual Actual Estimate Approved

General Debt Service 22,081,757 15,798,459 15,619,369 14,751,401
Less: Transfer Funding (8,438,308) (2,387,064) (2,399,369) (2,057,569)
Net General Debt Service 13,643,449 13,411,395 13,220,000 12,693,832

General Fund Expenditures 64,235,788 71,054,689 64,519,648 67,888,255

Percentage of General Fund Expenditures 21% 19% 20% 19%

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