Page 9 - GrapevineFY24 Adopted Budget

October 1, 2023

Honorable Mayor and Members of the City Council,

I am pleased to present the FY2024 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 FY2023

Economic activity is expected to moderate over the next 12 months

Prices for goods and services remain elevated due to inflation

General Fund

To account for increased economic pressures, the General Fund grows by $6.2 million (8%) over the
FY2023 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 2023 sales tax collections are estimated to total $38 million, an increase of $1.3 million
(4%) over FY2022 actuals. Sales tax collections in upcoming FY2024 are expected to moderate at
$37.5 million.

The FY2024 budget lowers the property tax rate by 8% from 0.271775 to 0.250560 per $100 of
valuation. However, due to increases in taxable value, the General Fund is expected to collect an
additional $381,343 in ad valorem revenue over FY2023. This budget expects to raise $15,011,862
in General Fund property taxes.

City-Wide Compensation

The FY2024 budget maintains compensation at the 50th percentile of market median. General city
employees will receive a 2% market adjustment and a 3% merit increase with a passing performance
evaluation. Uniformed public safety employees will receive a 2% market increase in addition to a 3%
or 5% step increase upon a passing evaluation.

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