Page 51 - Grapevine FY22 Adopted Budget v2

Key Accomplishments

A key objective of the Long-Range Financial Forecast is to meet and/or exceed the long-range
financial goals established by the City Council. The following table provides a summary of how
the FY22 budget meets the objectives.

Goal Result
Yes; Budget restores service
Sustain existing program service levels
levels to pre-pandemic levels.
Maintain General Fund balance of at least 20% annually Yes; FY22 projected ending
balance is 24%
Yes; FY22 budget includes a
th
Maintain competitive employee compensation at the 50 2% merit increase for general
percentile of the market employees and a two-step
increase for public safety.
Improving; FY22 budget
Adequate and stable street / facility maintenance funding partially restores full funding of
the Permanent Capital
Maintenance Fund (PCMF)
No; Due to reductions in
Cash funding of fleet, capital and technology equipment revenue, capital equipment will
replacements be purchased with newly issued
bonds.
Cap net debt service at 25% of the General Fund budget Yes; FY22 ratio is 19%
Use excess reserves to invest in “Quality of Life” capital No; FY22 does not restore
projects QOL funding

Current Economic Trends Impacting Long-Range Forecasting

Numerous economic indicators have rebounded and normalized following the COVID-19
pandemic. Increased economic activity is evident based on rises in sales tax, hotel occupancy,
and other revenues as compared to pandemic lows. However, there remains some uncertainty
regarding the commercial and lodging sectors due to lasting effects of the pandemic.

Following the 2008-2009 Great Recession, Grapevine experienced incremental growth in sales
tax collections culminating in early FY20. Then, due to business closures and travel restrictions
resulting from the COVID-19 pandemic, sales tax collections bottomed-out during the second
half of FY20. As the economy recovered in FY21, sales tax collections reached near pre-
pandemic levels to close out the fiscal year.

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