Page 18 - CityofGrapevineFY26AdoptedBudget

GENERAL FUND
The FY26 adopted budget for the General Fund totals $87.6 million which
is $894,684 (-1%) less than the FY25 adopted budget. The reduction
results from a change in accounting for the recognition of interfund
distributed expenditures. Adjusting for the accounting change, the FY26
adopted budget reflects an increase of approximately $1.7M (2%) over
the adopted FY25 budget. The increase is primarily due to increased
compensation and insurance costs partially offset by reduced outgoing
cash transfers.

Previously, interfund distributions were recognized as increases to
revenues in the General Fund. The process has been changed to
recognize reductions to expenditures in the General Fund in order to
avoid duplication of expenditures across all funds. The change results in
a reduction of revenue and expenditures in equal amounts thereby
having no impact to the fund balance.

In the chart, Other includes the following departments: Mayor & Council,
City Secretary, Building Services, and Planning Services.

COMPENSATION
To maintain salaries at 50% of the market median, the FY26 budget includes a 3% market increase for all general and public safety employees. This
increase is consistent with the findings of the city's ongoing compensation review. General employee merit increases and public safety step increases
are not included in the adopted budget. However, merit and step increases may be recommended as determined by the city's annual compensation
study and ongoing monitoring of market conditions and financial results throughout the year.

AD VALOREM TAXES
The FY2026 budget lowers the property tax rate by 2% from 0.241165 to .237228 per $100 of valuation. However, due to increases in taxable value, the
General Fund is expected to collect an additional $553K in ad valorem revenue over FY2025. This budget expects to raise $16,347,520 in General Fund
property taxes.

CASH TRANSFERS
The FY26 budget continues cash funding capital maintenance and vehicle
replacement, along with fully funding the CCPD budget. Due to excess
fund balances in the CCPD and Capital Equipment funds, cash transfers
were reduced by $1 million and $574K accordingly from FY25.
Additionally, a Quality of Life transfer is not budgeted at this time but will
be reevaluated at year-end. The Quality of Life Fund currently has an
unassigned balance totaling $3.9 million.

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