Page 50 - Grapevine FY22 Adopted Budget v2

The Long-Range Financial Forecast takes a forward look at the City’s General Government
(General, Debt Service and Capital / Street Maintenance funds) revenues and expenditures. Its
purpose is to identify financial trends, shortfalls, and issues so the City can proactively address
them. It does so by projecting out into the future the fiscal results of continuing the City’s current
service levels and policies, providing a snapshot of what the future will look like as a result of the
decisions made in the recent past. The Long-Range Financial Forecast is not intended as a budget,
or as a proposed plan. Instead, it sets the stage for the budget process, facilitating both Council and
staff in establishing priorities and allocating resources appropriately.

Goals of Long-Range Planning

To maximize the benefit of long-range planning, Council established the following goals:

• Sustain existing programs at high service levels
• Maintain a healthy General Fund balance of at least 20% annually
th
• Maintain competitive employee compensation at the 50 percentile of the market
• Provide adequate and stable funding for street and facility maintenance projects
• Pay cash for fleet, capital and technology equipment replacements
• Cap debt service at 25% of the General Fund budget
• Use excess reserves to invest in “Quality of Life” capital projects

The Long-Range Financial Forecast is based on assumptions regarding what will happen in the
regional and state economy over the next three years, and on near-term and long-term revenue
and expenditure drivers.

Key Revenue Drivers Key Expenditure Drivers

Ad Valorem Tax Rate Personnel Costs
Net Taxable Value Operating Supplies
Sales Tax Apparatus & Tools
Mixed Beverage Tax Motor Vehicle Fuel
Franchise Fees Maintenance
Licenses & Permits Travel, Training & Dues
Charges for Services Utility Costs
Intergovernmental Revenues Professional Services
Fines & Forfeitures Insurance Costs
Interest Income Fleet/Capital Equipment Replacements

50