Page 25 - CityofGrapevineFY25AdoptedBudget

Section D, Number 3.1 of the Grapevine Administrative Policy Manual outlines the Vehicle &
Equipment Replacement policy, and establishes a standard schedule of vehicle and equipment
replacement intervals. Under normal budgeting constraints, it is advantageous to replace vehicles
and equipment at specific intervals. Replacement in accordance with this schedule provides the
users with the most efficient and reliable vehicle and/or equipment as possible. Fleet replacement
procedures consider the most economic replacement point at which the vehicle has the greatest
salvage value and has been depreciated to its fullest.

Investment Policy

It is the policy of the City of Grapevine that, giving due regard to the safety and risk of investment,
all available funds shall be invested in conformance with State and Federal Regulations, applicable
Bond Resolution requirements, adopted Investment Policy and adopted Investment Strategy.

Effective cash management is recognized as essential to good fiscal management. Fiscally
conservative, effective cash management and investment strategy development will be pursued to
take advantage of interest earnings as viable and material revenue to all City funds. The portfolio of
the City is designed and managed in a manner responsive to the public trust and consistent with this
Policy.

Investments shall be made with the primary objectives of:

1. Preservation and safety of capital
2. Maintenance of sufficient liquidity
3. Preservation of public trust through prudent investment activities
4. Maximization of return within acceptable risk constraints, and
5. Diversification of investments

In accordance with the Public Funds Investment Act, the City of Grapevine’s investment strategies
shall address the following priorities (in order of importance):

1. Understanding the suitability of the investment to the financial requirements of the City
2. Preservation of safety and principal
3. Liquidity
4. Marketability of the investment prior to maturity
5. Diversification of the investment portfolio, and
6. Yield

Each major fund type has varying cash flow requirements and liquidity needs. Therefore, specific
strategies shall be implemented considering the fund’s unique requirements. The City’s funds shall
be analyzed and invested according to the following major fund types:

• Operating Funds
• Construction and Capital Improvement Funds
• Debt Service Funds

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