Page 54 - Grapevine FY23 Adopted Budget (1)

Key Revenue Drivers and Assumptions

Property taxes are determined by the
appraised value of taxable property
within the city and the rate of taxation
levied by the city. The tax rate is
assumed to remain at the current rate of
$0.271775 per $100 of valuation or less
throughout the three-year forecast
window. The net taxable value (NTV)
of all property within the city increased
by $87 million (.8%) in 2022.

While NTV will likely continue an upward trajectory, this revenue stream is projected to
increase by no more than 3.5% annually during the forecast window due to state-mandated caps
on property tax revenue growth.

Sales Taxes Beginning in FY21, Grapevine’s sales tax collections grew sharply resulting in near
pre-pandemic collection rates. This trend has continued into FY22 and we expect to reach
record-setting levels. However, in FY23, we expect this trend to moderate resulting in reduced
gains in sales taxes.

54