Page 66 - CityofGrapevineFY26AdoptedBudget

LONG-RANGE FINANCIAL FORECAST

The Long-Range Financial Forecast takes a forward look at the City’s revenues and expenditures by fund group (General Government, Special Revenue,
and Enterprise funds). Its purpose is to identify financial trends, shortfalls, and issues so the City can proactively address them. It does so by projecting
out into the future the fiscal results of continuing the City’s current service levels and policies, providing a snapshot of what the future will look like as a
result of the decisions made in the recent past. The Long-Range Financial Forecast is not intended as a budget, or as a proposed plan. Instead, it sets the
stage for the budget process, facilitating both Council and staff in establishing priorities and allocating resources appropriately.

Goals of Long-Range Planning
To maximize the benefit of long-range planning, Council established the following goals:
Sustain existing programs at high service levels
Maintain a healthy General Fund balance of at least 20% annually
Maintain competitive employee compensation at the 50th percentile of the market
Provide adequate and stable funding for street and facility maintenance projects
Pay cash for fleet, capital and technology equipment replacements
Cap debt service at 25% of the General Fund budget
Use excess reserves to invest in “Quality of Life” capital projects

The Long-Range Financial Forecast is based on assumptions regarding what will happen in the regional and state economy over the next three years,
and on near-term and long-term revenue and expenditure drivers.

Key Revenue Drivers Key Expenditure Drivers

Ad Valorem Tax Rate Personnel Costs
Net Taxable Value Operating Supplies
Sales Tax Apparatus & Tools

Mixed Beverage Tax Motor Vehicle Fuel
Franchise Fees Maintenance
Licenses & Permits Travel, Training & Dues
Charges for Services Utility Costs

Intergovernmental Revenues Professional Services
Fines & Forfeitures Insurance Costs
Interest Income Fleet/Capital Equipment Replacements

A key objective of the Long-Range Financial Forecast is to meet and/or exceed the long-range financial goals established by the City Council. The
following table provides a summary of how the FY26 budget meets the objectives.

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