Page 9 - Grapevine FY22 Adopted Budget v2

October 1, 2021

Honorable Mayor and Members of the City Council,

I am pleased to present the FY2022 Adopted Budget which returns many services to pre-pandemic
levels and prioritizes our most important asset, our people.

As the economy roared back in late FY2021, the 2022 budget was developed with that momentum in
mind and builds upon the following principles:
The Dallas-Fort Worth and Texas economies are recovering from the COVID-19 pandemic

Sales tax collections are expected to reach pre-pandemic levels in FY2022

Business and leisure travel are rebounding but at a slower pace

Costs for goods and services are at near-record highs due to rising inflation

General Fund

To account for increased service levels following COVID-19 reductions and greater costs, the General
Fund grows by $3.2 million (5%) over the FY2021 budget. Additionally, the fund balance is projected
to exceed the 20% reserve requirement which is critical in maintaining the city’s fiscal obligations in
the event of an emergency.

Sales tax revenue remained strong to closeout FY2021 which is expected to continue in a re-opened
and thriving economy. Last year, sales tax collections increased by $2.8 million (11%) over FY2020
and the FY2022 budget allocates an additional $557K (2%) over FY2021. General Fund sales tax
collections in 2022 are expected to total $29.1 million.

The FY2022 budget lowers the property tax rate by 3.8% to 0.271811 per $100 of valuation. However,
due to increases in taxable value, the General Fund is expected to collect an additional $641,250 in ad
valorem revenue over FY2021. This budget expects to raise $14,135,767 in property taxes.

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