Page 72 - CityofGrapevineFY26AdoptedBudget

EXPENSE DRIVERS AND ASSUMPTIONS
Personnel costs are based upon the assumption of full employment, with no addition of permanent personnel during the next three years. The FY26
budget included a market increase for general and public safety employees which led to 3.9 million (5%) in increased personnel expenses from FY25 to
FY26. In future years, expenses are expected to increase 3-5% each year.

The chart below includes full time salaries for the General Fund to illustrate the growth in personnel expenses.

$30M
$25M

$20M
Amount $15M
GENERAL FUND
$10M
$5M

$0
Actuals - FY2021 Actuals - FY2022 Actuals - FY2023 Actuals - FY2024 Adopted - FY2025 Estimated - FY2025 Adopted - FY2026
Category
Data Updated: Nov 17, 2025, 2:26 PM

Supplies, Maintenance, and Services are projected to increase at a rate of 3% per year. Costs increased 3% between FY25 and FY26.

Capital / Street Maintenance costs are derived from the five-year plan submitted by the facilities, parks maintenance, streets and traffic divisions. The
plan consists of a detailed program of activities for each piece of capital infrastructure within the city.

Insurance costs include property and casualty coverage as well as employee medical, dental, vision and life insurance coverage which increased 8%
between FY25 and FY26. Insurance costs are highly volatile and an increase of 3% is expected.

Debt Service costs will vary, as it is dependent upon several factors. As debt has been restructured to take advantage of lower interest rates, the amount
of property tax required to support debt obligations (the I&S portion of the tax rate) will fall correspondingly as existing debt is paid off. As the I&S
portion of the debt rate decreases, the ability to generate additional revenue for the General fund (the M&O portion of the tax rate) is limited due to
rollback provisions. Projections assume the city will maintain the tax rate at the current level of $0.237228 or the No New Revenue Rate.

Transfers out include payments to the Capital Equipment Replacement fund for the acquisition of new and/or replacement capital equipment, vehicles,
heavy machinery, and technology items. Transfers out also includes funds earmarked for the and Crime Control & Prevention District (CCPD) fund,
which was reduced in FY26. The FY26 budget has a total of $7.7 million in cash transfers. No transfer was budgeted in FY26 to the Quality of Life CIP
(QOL) fund. This will be re-evaluated during the fiscal year.

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