Page 60 - Grapevine FY22 Adopted Budget v2

Mixed Beverage Tax collections fell 31% from FY19 to FY20 due to closures associated with
the COVID-19 pandemic. As the economy emerged from the pandemic, FY21 collections
increased but did not reach FY19 totals. Modest growth over the next three years is expected.

Licenses, Fees & Permits include franchise fees, building permits and other development and
code-related fees. Franchise fees have declined by 13% between FY19 and FY21 due to the
state legislature’s ruling on telecom payments in municipal rights-of-way. This revenue stream
is projected to remain flat over the next three years.

Fines, Forfeitures and Charges for Services include municipal court fines, parks and recreation
service fees, library fines, vital statistics fees and internal charges to non-General fund
departments for employee health insurance, fleet maintenance and information technology
services. This revenue stream fell 9% due to reductions in service levels resulting from the
COVID-19 pandemic. This revenue stream is projected to reach pre-pandemic levels in FY22
and grow 4% annually over the following three years.

Interest and Miscellaneous Revenues include interest income from investment,
intergovernmental revenue, insurance reimbursements, subrogation revenue and lease income
from the collocation of communications antennae on city property. Revenues fell 49% between
FY19 and FY21. It’s projected that collections will rise 5% in FY22 and steadily reach pre-
pandemic levels in the next three years.

Transfers In consist of payments in lieu of taxes from outside funds to the General fund for
administrative services and contributions to the Debt Service fund for principal and interest
payments on each fund’s portion of outstanding debt obligations. This source of revenue
increased sharply in FY20 to support the General Fund during the COVID-19 pandemic.
However, in FY22 and beyond, transfers in are expected to fall below pre-pandemic levels to
preserve the health of the city’s special revenue and enterprise funds.

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