Page 62 - Grapevine FY22 Adopted Budget v2

Transfers out include payments to the Capital Equipment Replacement fund for the acquisition
of new and/or replacement capital equipment, vehicles, heavy machinery, and technology items.
Transfers out also include funds earmarked for the Quality of Life CIP (QOL) fund and Crime
Control & Prevention District (CCPD) fund. To combat revenue reductions resulting from the
COVID-19 pandemic, transfers were reduced by 39% between FY19 and FY20 and another 29%
between FY20 and FY21. The FY22 budget increases transfers by 11% and over the next three
years, similar increases are expected.

Fund Balance Summary

The General and Debt Service funds each have a fund balance requirement of 20% of net
operating expenditures, the equivalent of 72 days of operations. The General fund meets the
balance requirement each of the three years, with funds in excess of the 20% requirement
transferred to other funds such as the QOL fund. The Debt Service fund also exceeds the 20%
requirement each of the three years. The Capital / Street Maintenance fund does not currently
have a fund balance requirement, as its sole sources of revenue are operating transfers and
interest earnings.

GENERAL GOVERNMENT FUND BALANCE SUMMARY

2019-20 2020-21 2021-22 2022-23 2023-24 2024-25
Actual Estimate Approved Projected Projected Projected
GENERAL FUND
Beginning Balance 12,185,859 9,547,363 14,262,582 14,903,832 13,620,526 13,465,626
Net Operating Surplus / (Deficit) (2,638,496) 4,715,219 641,250 (1,283,306) (154,900) 230,300
Ending Balance 9,547,363 14,262,582 14,903,832 13,620,526 13,465,626 13,695,926
Percentage of Operating Expenditures 16% 24% 24% 21% 21% 21%
Days of Operation 57 87 88 78 76 76
FUND BALANCE REQUIREMENT 10,745,882 12,315,149 11,921,909 12,391,303 12,529,602 12,703,562
Fund balance requirement is 20% of total budgeted expenditures (72 days of operation).

DEBT SERVICE FUND
Beginning Balance 8,918,787 7,304,467 6,844,294 6,051,081 6,929,756 7,457,053
Net Operating Surplus / (Deficit) 4,075,374 (460,173) (793,213) 878,675 527,297 824,148
Ending Balance 12,994,161 6,844,294 6,051,081 6,929,756 7,457,053 8,281,201
Percentage of Operating Expenditures 77% 43% 37% 47% 44% 51%
Days of Operation 282 158 135 171 162 188
FUND BALANCE REQUIREMENT
Fund balance requirement is 20% of total budgeted expenditures (72 days of operation).

CAPITAL / STREET MAINTENANCE FUND

Beginning Balance 836,677 814,331 (1,470,295) (1,470,295) (1,470,295) (1,470,295)

Net Operating Surplus / (Deficit) (337,452) (2,284,626) - - - -

Ending Balance 499,225 (1,470,295) (1,470,295) (1,470,295) (1,470,295) (1,470,295)

FUND BALANCE REQUIREMENT --- NONE

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