Financial Planning Policies

The City Council has approved the adoption of financial policies which outline a budget process that encompasses the broad scope of governmental planning and decision-making with regard to the use of public resources. These policies have been endorsed by the Government Finance Officers Association (GFOA) and the National Advisory Council on State and Local Budgeting (NACSLB).

Section 9.14 of the Grapevine Code of Ordinances

Establishes a policy to maintain a prudent level of financial resources to protect against one-time expenditures. Provision is made for a contingent appropriation of not more than three percent of the total budget, to be used in case of unforeseen items of expenditure. Such contingent appropriation shall be under the control of the city manager, and distributed after approval of the City Council.

Section 9.15 of the Grapevine Code of Ordinances

Establishes a balanced budget provision for the General and Debt Service funds. Total estimated expenditures within these funds shall not exceed the total estimated resources.

Section 9.16 of the Grapevine Code of Ordinances

Provides for disclosure when a deviation from a balanced budget is necessary. The budget may be amended and appropriations altered in cases of public necessity, upon declaration of the City Council.

Section 10.31 of the Grapevine Code of Ordinances

Establishes policies and guidelines governing cash management and investment of City funds. Safety of principal is the foremost objective of the City in managing its portfolio. The City will also maintain sufficient liquidity to provide adequate and timely working funds.

Section B, Number 5.0 of the Grapevine Administrative Policy Manual

Establishes the fund balance reserve policy to ensure fund availability for unforeseen emergencies that would severely impact the City’s ability to pay for basic operations and guarantee the payment of debt obligations. Any exceptions are to be noted at the time the budget is approved. The emergency reserve is established at the following minimum levels:

• General Fund – 20 percent (72 days) of total current budgeted expenditures.
• Debt Service Fund – 20 percent (72 days) of total current budgeted net debt service expenditures.
• Convention & Visitors Fund – 16 percent (60 days) of total current budgeted expenditures.
• Utility Enterprise Fund – working capital reserves of 16 percent (60 days) of total budgeted expenses.
• Lake Enterprise Fund – working capital reserves of 25 percent (90 days) of total budgeted expenses.

Section B, Number 14.0 of the Grapevine Administrative Policy Manual

Outlines the fixed asset capitalization policy, which establishes a uniform and consistent standard for the capitalization of fixed assets owned by the City. This policy also establishes the procedure to inventory and assess the condition of all major capital assets.