Page 9 - Grapevine FY23 Adopted Budget (1)

October 1, 2022

Honorable Mayor and Members of the City Council,

I am pleased to present the FY2023 Adopted Budget which was developed upon the following
principles:
Dallas-Fort Worth and Texas economies are excelling

Sales tax collections are expected to reach record levels in FY2022
Low unemployment, high inflation, and supply chain disruptions continue increase costs for
goods and services

A mild recession may impact the next fiscal year, tempering economic gains

General Fund

To account for increased economic pressures, the General Fund grows by $5.8 million (9%) over the
FY2022 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.

Fiscal Year 2022 sales tax collections are estimated to total $35 million, an increase of $6.5 million
(23%) over FY2021 actuals. Sales tax collections in upcoming FY2023 are expected to moderate at
$33.4 million.

The FY2023 budget lowers the property tax rate by .01% from 0.271811 to 0.271775 per $100 of
valuation. However, due to increases in taxable value, the General Fund is expected to collect an
additional $504,803 in ad valorem revenue over FY2022. This budget expects to raise $14,630,519
in General Fund property taxes.

City-Wide Compensation

The FY2023 budget maintains compensation at the 50th percentile of market median and responds
to inflationary pressures. In FY23, general city employees will receive a 3% market adjustment and
a 3% merit increase with a passing performance evaluation. Uniformed public safety employees
will receive a 3% or 5% market increase in addition to a 3% or 5% step increase. All employees at
the maximum of their pay scale will receive a 3% or 5% market increase and a 3% lump sum
payment.

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