Page 9 - CityofGrapevineFY25AdoptedBudget

October 1, 2024

Honorable Mayor and Members of the City Council,

We are pleased to present the FY2025 Adopted Budget which was developed upon the
following principles:

Dallas-Fort Worth and Texas economies are excelling

Sales tax collections for FY2025 are expected to maintain record levels reached in FY2024

Economic activity is expected to moderate over the next 12 months

Prices for goods and services remain elevated due to inflation

General Fund

The FY2025 General Fund budget grows by $8.5 million (11%) over the FY2024 budget due to
increased cash transfers to the Capital Equipment Fund, Permanent Capital/Street Maintenance Fund,
and Quality of Life Fund. 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 2024 sales tax collections are estimated to total $42.5 million, an increase of $2.9 million
(7%) over FY2023 actuals. Sales tax collections in upcoming FY2025 are expected to remain near
$42.5 million.

The FY2025 budget lowers the property tax rate by 4% from 0.250560 to 0.241165 per $100 of
valuation. However, due to increases in taxable value, the General Fund is expected to collect an
additional $548,000 in ad valorem revenue over FY2024. This budget expects to raise $15,794,705
in General Fund property taxes.

City-Wide Compensation

The FY2025 budget maintains compensation at the 50th percentile of market median. 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% market increase in addition to a 3%
or 5% step increase upon a passing evaluation.

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