HomeMy WebLinkAboutItem 05 - City Audit
Honorable Mayor and
Members of the City Council
City of Grapevine, Texas
We have audited the financial statements of the City of Grapevine, Texas (City), as of and for the year
ended September 30, 2020, and have issued our report thereon dated March 11, 2021. Professional standards
require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated September 15, 2020, our responsibility, as described by
professional standards, is to form and express opinions about whether the financial statements that have been
prepared by management with your oversight are presented fairly, in all material respects, in accordance with
accounting principles generally accepted in the United States of America. Our audit of the financial statements does
not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements inclu des consideration of internal control over financial reporting as
a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, as part
of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures
and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we
are not required to design procedures for the purpose of identifying other matters to communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, and, as appropriate, our firm have complied with all relevant
ethical requirements regarding independence.
As part of the engagement we assisted in preparing the financial statements and related notes to the
financial statements of the City in conformity with U.S. generally accepted accounting principles based on
information provided by you. These nonaudit services do not constitute an audit under Government Auditing
Standards and such services were not conducted in accordance with Government Auditing Standards.
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In order to ensure we maintain our independence for performing these nonaudit services certain safeguards
were applied to this engagement. Management assumed responsibility for the financial statements, related notes
to the financial statements and any other nonaudit services we provided. Management acknowledged, in the
management representation letter, our assistance with the preparation of the financial statements and related notes
to the financial statements and that these items were reviewed and approve d prior to their issuance and accepted
responsibility for them. Further, the nonaudit services were overseen by an individual within management that has
the suitable skill, knowledge, or experience; evaluated the adequacy and results of the services; and accepted
responsibility for them.
Qualitative Aspects of the City’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have
been no initial selection of accounting policies and no changes in significant accounting policies or their application
during the current year. No matters have come to our attention that would require us, under professional standards,
to inform you about the effect of significant accounting pol icies in controversial or emerging areas for which there
is a lack of authoritative guidance or consensus.
No matters have come to our attention that would require us, under professional standards , to inform you
about (1) the methods used to account for s ignificant unusual transactions and (2) the effect of significant accounting
policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s current judgments. Those judgments are normally based on knowledge and experience
about past and current events and assumptions about future events. Certain accounting estimates are particularly
sensitive because of their significance to the financial statements and because of the possibility that future events
affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affecting the financial statements are:
• Management’s estimate of the allowance for uncollectible receivables is based on historical collection
experience.
• Management’s estimate of the accumulated depreciation on capital assets is based on the related
estimated useful lives of capital assets.
• Management’s estimate of the net pension liability and net OPEB liability are based on actuarial
assumptions which are determined by the demographics of the plan and future projections that the
actuary makes based on historical information of the plan and the investment market.
For each of these estimates, we evaluated the key factors and assumptions used to develop them and
determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to
the applicable opinion units.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because
of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial
statements relate to the City’s net pension liability and net OPEB liability.
The disclosures in the financial statements are neutral, consistent, and clear.
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Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the
audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely
misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the
appropriate level of management. Further, professional standards require us to also communicate the effect of
uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or
disclosures, and the financial statements as a whole and each applicable opinion unit. Management has corrected
all identified misstatements.
In addition, professional standards require us to communicate to you all material, corrected misstatements
that were brought to the attention of management as a result of our audit procedures. None of the misstatements
identified by us as a result of our audit procedures and corrected by management were material, either individually
or in the aggregate, to the financial statements taken as a whole or applicable opinion units.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which
could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during
the course of the audit.
Representations Requested from Management
We have requested certain written representations from management, which are included in the
management representation letter dated March 11, 2021.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. Management informed us that, and to our knowledge, there were no consultations with other accountants
regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters,
including the application of accounting principles and auditing standards, operating and regulatory conditions
affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of
the matters discussed resulted in a condition to our retention as the City’s auditors.
Restriction on Use
This report is intended solely for the information and use of the City Council, Audit Committee and
management of the City of Grapevine, Texas, and is not intended to be, and should not be, used by anyone other
than these specified parties.
Waco, Texas
March 11, 2021
CITY OF GRAPEVINE, TEXAS
SINGLE AUDIT REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2020
Prepared by: Fiscal Services Department
CITY OF GRAPEVINE, TEXAS
SEPTEMBER 30, 2020
TABLE OF CONTENTS
Page
Number
Independent Auditor’s Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards .................................................................... 1 – 2
Independent Auditor’s Report on Compliance for
Each Major Federal Program and Report on Internal Control
Over Compliance in Accordance with the Uniform Guidance .................................................... 3 – 4
Schedule of Expenditures of Federal Awards ............................................................................... 5
Notes to Schedule of Expenditures of Federal Awards ................................................................. 6
Schedule of Findings and Questioned Costs ................................................................................ 7 – 8
Summary Schedule of Prior Audit Findings ................................................................................... 9
THIS PAGE LEFT BLANK INTENTIONALLY
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Honorable Mayor and
Members of the City Council
City of Grapevine, Texas
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States, the financial statements of the governmental activities, the
business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining
fund information of the City of Grapevine, Texas (the “City”), as of and for the year ended September 30, 2020,
and the related notes to the financial statements, which collectively comprise the City’s basic financial statements,
and have issued our report thereon dated March 11, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an
opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees in the normal course of performing their assigned functions, to prevent, or detect and
correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial
statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over financial
reporting that might be material weaknesses or significant deficiencies and therefore, materia l weaknesses or
significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not
identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified. We did identify a deficiency in internal
control, described in the accompanying Schedule of Findings and Questioned Costs as item 2020-001, that we
consider to be a significant deficiency.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
financial statements. However, providing an opinion on compliance with those provisions was not an objective of
our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
The City’s Response to Finding
The City’s response to the finding identified in our audit is described in the accompanying Summary
Schedule of Prior Audit Findings. The City’s response was not subjected to the auditing procedures applied in the
audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or
on compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the City’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
Waco, Texas
March 11, 2021
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR
EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE
To the Honorable Mayor
and City Council of the
City of Grapevine, Texas
Report on Compliance for Each Major Federal Program
We have audited the City of Grapevine, Texas’ compliance with the types of compliance requirements
described in the OMB Compliance Supplement that could have a direct and material effect on each of the City of
Grapevine, Texas’ major federal programs for the year ended September 30, 2020. City of Grapevine, Texas’
major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of
findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal programs.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for each of the City of Grapevine, Texas’ major
federal programs based on our audit of the types of compliance requirements referred to above. We conducted
our audit of compliance in accordance with auditing standards generally accepted in the United States of America;
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations
(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the
audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program occurred. An audit
includes examining, on a test basis, evidence about the City of Grapevine, Texas’ compliance with those
requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City of Grapevine, Texas’
compliance.
Opinion on Each Major Federal Program
In our opinion, the City of Grapevine, Texas complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended September 30, 2020.
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Report on Internal Control over Compliance
Management of City of Grapevine, Texas, is responsible for establishing and maintaining effective
internal control over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the City of Grapevine, Texas’ internal control over compliance
with the types of requirements that could have a direct and material effect on each major federal program as a
basis for determining auditing procedures that are appropriate in the circumstances for the purpose of expressing
an opinion on compliance for each major federal program and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness
of the City of Grapevine, Texas’ internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination
of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and
corrected on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control ov er compliance with a type of compliance requirement of a federal
program that is less severe than a material weakness in internal control over compliance, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that
might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have
not been identified.
Report on Schedule of Expenditures of Federal Aw ards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business -type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information of the City
as of and for the year ended September 30, 2020 and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements. We issued our report thereon dated March 11, 2021,
which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of
forming opinions on the financial statements that collectively comprise the basic financial statements. The
accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is
the responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional proced ures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the
schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Waco, Texas
March 11, 2021
Federal CFDA Pass-through Pass-through
Program Title Number Grantor's Number Expenditures Expenditures
FEDERAL AWARDS
U.S. Department of Justice
Direct program:
DEA Controlled Substance Task Force 2 16.000 N/A 18,649$ -$
Body Armor Grant 16.607 1121-0235 9,765 -
Total Direct Awards 28,414 -
Passed through Office of the Governor- Criminal Justice Division (CJD):
Forensic Equipment Enhancement 16.738 2017-DJ-BX-0053 21,840 -
COVID-19 - Coronavirus Emergency Supplemental Funding Program 16.034 4140801 20,000 -
Subtotal Criminal Justice Division 41,840 -
Total U.S. Department of Justice 70,254 -
U.S. Department of Transportation
Passed through the Texas Department of Transportation:
State and Community Highway Safety:
STEP Comprehensive 2020 20.600 2020-GrapevinePD-2-1YR-00071 33,459 -
STEP CMV 2020 20.600 2020-GrapevinePD-S-CMV-00023 9,836 -
Subtotal Highway Safety Cluster 43,295 -
Highway Planning and Construction - Dallas Road Corridor 20.205 0902-90-077 3,200,686
Highway Planning and Construction - Green Ribbon Program Phase 5 20.205 0364-01-154 533,574 -
Subtotal Highway Planning and Construction Cluster 3,734,260 -
U.S. Department of Transportation - Federal Railroad Administration
Passed through Dallas Area Rapid Transit:
DART/ Trinity Metro Regional PTC Deployment Project 20.325 69A36520401300CRSTX 135,760 -
Total U.S. Department of Transportation 3,913,315 -
U.S. Department of the Treasury
Passed through Tarrant County:
COVID-19 - Coronavirus Relief Fund 21.019 N/A 2,216,193 -
Total U.S. Department of the Treasury 2,216,193 -
Institute of Museum and Library Services
Passed through the Texas State Library and Archives Commission:
Interlibrary Loan Lending 45.310 901761 1,006 -
Total Institute of Museum and Library Services 1,006 -
U.S. Department of Health and Human Services
Passed through the Texas Health and Human Services Commission:
Ambulance Services - Uncompensated Care Costs (Medicaid Cluster)93.778 199067001 183,786 -
Total Texas Health and Human Services Commission 183,786 -
Passed through the University of North Texas Health Science Center:
Medicare Library Assistance:
All of Us - Health Program Kits Awards 93.879 5UG4LM012345-04 4,596 -
Public Library Association Conference 93.879 N/A 2,495 -
Total Medical Library Assistance 7,091 -
Total U.S. Department of Health and Human Services 190,877 -
U.S. Department of Homeland Security
Passed through the Texas Office of the Governor -
Homeland Security Grants Division:
UASI - TC - Grapevine - NEFDA - Technical Rescue Sustainment 97.067 EMW-2019-SS-00034-S01 54,533 54,533
Total U.S. Department of Homeland Security 54,533 54,533
Total Expenditures of Federal Awards 6,446,178$ 54,533$
CITY OF GRAPEVINE, TEXAS
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
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CITY OF GRAPEVINE, TEXAS
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
SEPTEMBER 30, 2020
1.GENERAL
The Schedule of Expenditures of Federal Awards presents the activity of all applicable federal award
programs of the City of Grapevine, Texas. The City’s reporting entity is defined in Note 1 of the financial
statements. Federal awards received directly from federal agencies, as well as federal awards passed
through other government agencies, are included on the Schedule of Expenditures of Federal Awards.
2.BASIS OF ACCOUNTING
The Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting.
The City’s significant account policies, including the modified accrual basis of accounting, are presented in
Note 1 of the basic financial statements. The information in the schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some of the
amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the
financial statements.
3.INDIRECT COSTS
The City did not elect to apply the 10% de minimis indirect cost rate.
Summary of Auditor's Results
Financial Statements:
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Material weakness(es) identified?No
Significant deficiency(ies) identified?Yes
Noncompliance material to financial statements
noted? No
Federal Awards:
Internal control over major programs:
Material weakness(es) identified?No
Significant deficiency(ies) identified?No
Type of auditor's report issued on compliance
for major programs Unmodified
Any audit findings disclosed that are required
to be reported in accordance with Section
2 CFR 200.516(a)No
Identification of major programs:
CFDA Number(s)Name of Federal Program or Cluster:
#20.205 Highway Planning and Construction
#21.019 COVID-19 - Coronavirus Relief Fund
Dollar threshold used to distinguish between type A
and type B programs $750,000
Auditee qualified as low-risk auditee?No
Findings and Questioned Costs for Federal Awards
None
Findings Relating to the Financial Statements Which
Are Required to be Reported in Accordance With
Generally Accepted Auditing Standards
2020-001
FOR THE YEAR ENDED SEPTEMBER 30, 2020
CITY OF GRAPEVINE, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
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CITY OF GRAPEVINE, TEXAS
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
(continued)
SEPTEMBER 30, 2020
Finding Number : 2020-001
Repeat Finding: Yes, reported as 2018-001 and 2019-001.
Criteria: To perform their job responsibilities, system administrators must be given
control over computer systems. An organization should have proper
controls in place to ensure that only appropriate employees have
administrator rights and privileges. Administrator user accounts should be
reviewed annually, user accounts should be protected with strong
passwords and their actions on computer systems should be monitored for
questionable activities.
Condition: The City currently uses almost 200 separate on-site and cloud-based
systems. Generally, the administrators for these systems also work in the
respective departments where the software is used. The administrator user
accounts are the owner’s primary accounts that are used within the system.
Because this administrative responsibility is being maintained at the
department level, requirements like mandatory password changes, locking
individual system access to terminated employees and monitoring general
system access on an ongoing basis is not always being done.
Effect: Segregation of duties is ineffective. Without sufficient segregation of duties,
the risk significantly increases that errors, including misappropriation of
assets, could occur and not be detected on a timely basis.
Recommendation: Management should consider a formal evaluation of the risks associated
with this lack of duties segregation. Consideration should be given to
identifying and implementing controls that could help mitigate the risks
associated with a lack of segregation of duties, such as granting
administrative-level application access only to users who do not participate
in the related control activities.
Management’s Response: The City acknowledged that there were control deficiencies in this area prior
to our annual audit and we have already started reviewing systems access
controls within the City. In addition to these procedures, we will also perform
an evaluation to determine the resources that will be necessary to ensure
that proper segregation of duties is maintained, and appropriate control
procedures are in place regarding systems administration.
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CITY OF GRAPEVINE, TEXAS
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
SEPTEMBER 30, 2020
Finding Number: 2019-001
Repeat Finding: Yes, this finding was originally reported as 2018-001.
Criteria: To perform their job responsibilities, system administrators must be given
control over computer systems. An organization should have proper
controls in place to ensure that only appropriate employees have
administrator rights and privileges. Administrator user accounts should be
reviewed annually, user accounts should be protected with strong
passwords and their actions on computer systems should be monitored for
questionable activities.
Condition: The City currently uses almost 200 separate on-site and cloud-based
systems. Generally, the administrators for these systems also work in the
respective departments where the software is used. The administrator user
accounts are the owner’s primary accounts that are used within the system.
Because this administrative responsibility is being maintained at the
department level, requirements like mandatory password changes, locking
individual system access to terminated employees and monitoring general
system access on an ongoing basis is not always being done.
Effect: Segregation of duties is ineffective. Without sufficient segregation of duties,
the risk significantly increases that errors, including misappropriation of
assets, could occur and not be detected on a timely basis.
Recommendation: Management should consider a formal evaluation of the risks associated
with this lack of duties segregation. Consideration should be given to
identifying and implementing controls that could help mitigate the risks
associated with a lack of segregation of duties, such as granting
administrative-level application access only to users who do not participate
in the related control activities.
Management’s Response: The City acknowledged that there were control deficiencies in this area prior
to our annual audit and we have already started reviewing systems access
controls within the City. In addition to these procedures, we will also perform
an evaluation to determine the resources that will be necessary to ensure
that proper segregation of duties is maintained, and appropriate control
procedures are in place regarding systems administration.
Current Status: In process
Fiscal Services • 200 South Main Street • Grapevine, Texas • 76051 • 817-410-3113 • Fax 817-410-3013
CITY OF GRAPEVINE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2020
Prepared by: Fiscal Services Department
CITY OF GRAPEVINE, TEXAS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
SEPTEMBER 30, 2020
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal .................................................................................................................. i – v
Certificate of Achievement for Excellence in Financial Reporting ............................................ vi
Organization Chart.................................................................................................................... vii
Administrative Officials ............................................................................................................. viii
FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................... 1 – 2
Management’s Discussion and Analysis .................................................................................. 3 – 13
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position ................................................................................................... 14
Statement of Activities ........................................................................................................ 15 – 16
Fund Financial Statements:
Balance Sheet – Governmental Funds .............................................................................. 17 – 18
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position ...................................................................................... 19
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds ........................................................................... 20 – 21
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities ..................................................................................................... 22
Statement of Net Position – Proprietary Funds .................................................................. 23 – 24
Statement of Revenues, Expenses and Changes in
Net Position – Proprietary Funds .................................................................................. 25
Statement of Cash Flows – Proprietary Funds ................................................................... 26 – 27
Statement of Fiduciary Assets and Liabilities – Fiduciary Funds ....................................... 28
Notes to the Financial Statements......................................................................................... 29 – 58
Required Supplementary Information:
Budgetary Comparison Schedule – General Fund ................................................................ 59
Budgetary Comparison Schedule – Hotel Occupancy Tax Fund .......................................... 60
Budgetary Comparison Schedule – Crime District Fund ....................................................... 61
Budgetary Comparison Schedule – Lake Parks Fund .......................................................... 62
Budgetary Comparison Schedule – 4B Economic Development Fund ................................ 63
Budgetary Comparison Schedule – 4B – Transit Fund ........................................................ 64
Schedule of Changes in Net Pension Liability
and Related Ratios – Texas Municipal Retirement System .............................................. 65 – 66
Schedule of Contributions – Texas Municipal Retirement System ....................................... 67 – 68
Schedule of Changes in Net OPEB Liability
and Related Ratios ............................................................................................................ 69
Notes to Required Supplementary Information ..................................................................... 70
Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet .................................................................................................. 71 – 72
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances ............................................................................................. 73 – 74
Budgetary Comparison Schedule – Debt Service Fund ........................................................ 75
Agency Funds:
Combining Statement of Changes in Assets and Liabilities ............................................... 76
STATISTICAL SECTION (Unaudited)
Table
Net Position by Component ...................................................................................... 1 77 – 78
Changes in Net Position ........................................................................................... 2 79 – 82
Fund Balances – Governmental Funds .................................................................... 3 83 – 84
Changes in Fund Balances – Governmental Funds ................................................. 4 85 – 86
Taxable Sales by Category ...................................................................................... 5 87 – 88
Direct and Overlapping Sales Tax Rates ................................................................. 6 89
Assessed Value and Estimated Actual Value
of Taxable Property ............................................................................................... 7 90
Property Tax Rates – Direct and Overlapping Governments ................................... 8 91
Principal Property Taxpayers ................................................................................... 9 92 – 93
Property Tax Levies and Collections ........................................................................ 10 94
Ratios of Outstanding Debt by Type......................................................................... 11 95 – 96
Ratios of General Bonded Debt Outstanding ........................................................... 12 97 – 98
Direct and Overlapping Governmental Activities Debt ............................................. 13 99
Legal Debt Margin Information ................................................................................. 14 100
Pledged Revenue Coverage – 4B Economic Development Fund ........................... 15 101
Pledged Revenue Coverage – Tax Increment Financing
District Reinvestment Zone Number Two .............................................................. 16 102
Demographic and Economic Statistics ..................................................................... 17 103
Principal Employers .................................................................................................. 18 104
Full-time Equivalent City Government Employees
by Function/Program ............................................................................................. 19 105 – 106
Operating Indicators by Function/Program ............................................................... 20 107 – 110
Capital Asset Statistics by Function/Program .......................................................... 21 111 – 112
THIS PAGE LEFT BLANK INTENTIONALLY
i
March 11, 2021
To the Honorable Mayor,
Members of the City Council, and
Citizens of the City of Grapevine, Texas
The Fiscal Services Department is pleased to submit the Comprehensive Annual Financial Report for the City of
Grapevine. The City’s Management assumes responsibility for both the accuracy of the data and the completeness
and fairness of the presentation, based upon a comprehensive framework of internal con trol that has been
established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the
objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any
material misstatements. To the best of our knowledge and bel ief, the enclosed data is accurate in all material
respects. The data is reported in a manner designed to present fairly the financial position and results of operations
of the various funds of the City government. To enable the reader to gain an underst anding of the City’s financial
activities, all necessary disclosures have been included.
The City Charter requires an annual audit of the books of account, financial records, and transactions of all
administrative departments of the City. The City Charter specifies that independent accountants selected by the
City Council conduct such audits. Pattillo, Brown & Hill, LLP was selected by the City Council to conduct this year’s
audit. The independent auditors’ report on the basic financial statements is included in the financial section of this
report. This report fulfills the requirement of state law which requires the City file to the State an annual financial
statement and audit opinion within 180 days after the last day of the municipality’s Fiscal Year (FY).
Pattillo, Brown & Hill, LLP has issued an unmodified (“clean”) opinion on the City of Grapevine’s financial statements
for the year ended September 30, 2020. The independent audit report is located at the front of the financial section
of this report.
The Management’s Discussion and Analysis (MD&A) is a narrative introduction, overview, and analysis to
accompany the basic financial statements. The MD&A can be found immediately following the independent
auditors’ report. The letter of transmittal is designed to complement and should be read in conjunction with the
MD&A. The statistical section includes selected financial and demographic information, generally presented on a
multi-year basis.
Fiscal Services • 200 South Main Street • Grapevine, Texas • 76051 • 817-410-3113 • Fax 817-410-3013
ii
Profile of the City of Grapevine
Incorporated in February 1907, Grapevine is a home rule City operating under a Council -Manager form of
government. Policymaking and legislative authority are vested in the City Council, which consists of a Mayor and
a six-member Council. The City Manager is appointed by the City Council and is responsible for carrying out policies
and for the daily management of the City. Council members serve three-year staggered terms, with two Council
members elected each year. The M ayor is elected to serve a three-year term.
The City is located in the center of the Dallas/Fort Worth metropolitan complex, 21 miles northwest of downtown
Dallas and 19 miles northeast of downtown Fort Worth. Three major freeways, State Hwy 114, State Hwy 121, and
Interstate Hwy 635, intersect in the heart of Grapevine, providing excellent access to Dallas, Fort Worth and the
area shopping, entertainment, and employment centers. The City is located in Northeast Tarrant County and is
home to the Dallas/Fort Worth International Airport. Two-thirds of the airport properties are located within Grapevine
city limits and Grapevine participates in a legislatively mandated revenue share agreement with the cities of Ft.
Worth and Dallas. The City is approximately 35 square miles and serves an approximate population of 54,000.
The City provides a full range of services, including police and fire protection, emergency ambulance service,
planning and zoning, public improvements, water and sewer services, sanitation services, extensive parks and
recreation facilities, library services, street and other public infrastructure maintenance and improvements, and
general administrative services. In addition, the City offers a 27-hole golf course, a very active economic
development focus and an aggressive marketing plan designed to promote the growth and development of industry
and tourism within the City. Internal services including fleet operations and risk management are provided through
the General Fund.
The City of Grapevine’s Home Rule Charter provides for the submission of the budge t to the City Council by the
City Manager. At least sixty days and no more than ninety days before the beginning of the fiscal year, the City
Manager must submit a proposed budget to the City Council. The annual budget serves as the foundation for the
City of Grapevine’s financial planning and control. The budget is prepared by fund and department, allowing the
City Manager to approve the transfer of expenditures within a fund; however, transfers between funds require
approval from the governing Council. 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; however, it does provide 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.
Component units are legally separate organizations that a primary government must include as a part of its financial
reporting entity. The City has included financial statements for five blended component units due to their fiscal
dependency on the primary government. The Tax Reinvestment Zones Numbers One an d Two, the Crime Control
and Protection District, the Grapevine 4B Economic Development Corporation, and the 4B Transit Fund, which
accounts for local sales tax used to fund Grapevine’s participation in the commuter rail development project with
the Fort Worth Transit Authority. The 4B Economic Development Fund accounts for a portion of the local sales tax
which is used to stimulate the local economy, promote new development, and spur redevelopment of other areas.
The Heritage Foundation is a legally separate organization that is a discretely presented component unit of the City.
The Foundation was organized to promote the preservation, protection and economic development of Grapevine's
physical and cultural heritage. Additional information on all six c omponent units can be found in Note I in the notes
to the financial statements.
iii
Local Economy
During FY 2020, the onset of the COVID 19 pandemic impacted many cities around the DFW Metroplex and the
nation including the City of Grapevine. Tourism and local commerce were disrupted due to reductions in travel and
closing of, or limitations to, many businesses in the City. While the City has experienced some improvement in
results as the travel industry improves and businesses re -open, the results have not returned to pre pandemic
levels. Results are expected to improve throughout the upcoming fiscal year as several new acquisitions begin
operations and existing businesses continue to rebound from the effects of the pandemic. The unemployment rate
at the end of the fiscal year rose to 6% which is lower than the state’s unemployment rate of 8% for the same time.
Sales Tax, the single largest revenue stream for the City, declined 14% from the prior fiscal year resulting from the
effects of the pandemic. Restaurants and stores around the City closed due to safety restrictions causing more
citizens to take their shopping online. Decreased travel impacted sales from tourism as well as sales from properties
located at the airport. Sales tax revenues over the last 10 years are illustrated in the table below and reflect the
decline in FY 2020 due to the pandemic.
The City’s hotel and occupancy tax receipts have also declined this year. The reduction in travel caused by the
pandemic dramatically slowed down past growth in the hospitality and tourism industry. Hotel occupancy tax
revenues decreased 44% from FY 2019. As the pandemic and restrictions ease in the future and travel starts to
return to normal, expectations are hotel and occupancy tax revenue will rebound and flourish as it has in the past.
Long-term Financial Planning
The City Council establishes long-term financial goals each year as a part of the budgeting process. For FY 2020,
the Council continued with the following goals:
(1) Maintain financial stability and strong fiscal management
(2) Sustain existing programs at high service levels
(3) Provide a safe and secure community
(4) Address future transportation needs
(5) Continue to enhance tourism development
$5,000
$15,000
$25,000
$35,000
$45,000
$55,000
$65,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Sales and Hotel Occupancy Tax Revenue
(Thousands)
Sales Tax Occupancy Tax
iv
While the COVID 19 pandemic had a significant impact to current year results , the City of Grapevine was able to
maintain financial stability and strong fiscal management for FY 2020. The General, Debt Service, Utility Enterprise,
and Stormwater Drainage funds ended the fiscal year with fund balances that meet or exceed their reserve
requirements. The City also maintained existing services and transferred from the General Fund $3,406,824 to the
Crime District Fund, and $3,279,000 to the Street Maintenance and Capital Replacement Fund.
As part of the commitment to safety the City continued construction of several capital projects including 2 new fire
stations and a new Police Animal Shelter. For Fiscal Year 2020, the Police Department responded to 39,006 calls
for service while the Fire Department responded to 1,832 calls for service and 4,008 ambulance runs.
Major Economic Initiatives and Community Development
Grapevine is home to many successful businesses as well as numerous wineries, fine dining, nationally ranked
festivals, and select attractions and resorts. Its economic development efforts are designed to further increase
visitors and tax revenues through projects that emphasize hospitality, entertainment and retail uses. Grapevine
has earned a well-deserved reputation as one of the nation’s premier destinations by drawing 15 million visitors
annually. Grapevine also boasts exceptional commercial and office facilities that capitalize on the City’s central
location in one of the top regions in the nation for business and close proximity to the world’s third -busiest airport,
providing ready access to major U.S. and international markets.
Grapevine continues to experience construction growth although values declined from previous years due to COVID
19. In FY 2020, construction values exceeded $157 million, compared to $246 million in FY 2019 . The largest
categories in this fiscal year were $49 million in New Commercial Property and $21 million in new government,
which accounted for approximately 45% of the construction values. A total of 36 single-family residential homes
were permitted in FY 2020 valued at $12 million which represents a decrease of 8 residences from the previous
year.
In FY 2006, the citizens of Grapevine overwhelmingly voted to approve the creation of an economic development
fund for the primary purpose of providing commuter rail service to the City. Since that time, the City has worked
closely with TEXRail to achieve this goal. On January 10, 2019, TEXRail commuter rail service began in Grapevine.
TEXRail is a new 27-mile commuter rail line that extends from downtown Fort Worth, across northeast Tarrant
County, through North Richland Hills and Grapevine, and into DFW International A irport’s Terminal B. The train
station in Grapevine consists of an observation tower, public plaza, parking garage, public meeting spaces, Harvest
Hall, and retail spaces. In conjunction with the aforementioned projects, the City has entered into agreements with
Vin Hotel to include a 121 room, AAA, four diamond level hotel to this project. The hotel and parking garage began
operations in FY 2020. The remaining portions of the project opened in FY 2021.
Southland Holdings, a major civil engineering firm with work across the state and region will be moving their
corporate office to Grapevine on 6 acres of land purchased in FY 2020. Work is already underway on construction
of an approximately 80,000 sf building which is expected house 75 to 100 full time employees.
Awards and Acknowledgements
The City’s Fiscal Services Department was awarded the Government Finance Officers Association (GFOA)
Certificate of Achievement for Excellence in Financial Reporting for its comprehensive annual financial report
for the fiscal year ended September 30, 2019. This was the 33rd consecutive year that the City has received
this prestigious award. In order to be awarded a Certificate of Achievement, the City published an easily readable
and efficiently organized annual report. This report satisfied both GAAP and applicable legal requirements. A
Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive
Annual Financial Report continues to meet the Certificate of Achievement Program’s requirements and we are
submitting it to the GFOA to determine its eligibility for another certificate.
v
The preparation of this report would not have been possible without the efficient and dedicated services of the entire
Fiscal Services Department. We would also like to express our appreciation to other City department staff that
provided information and contributed to the preparation of this report.
We would also like to thank the members of the City Council for their interest and support in planning and conducting
the financial operations of the City in a responsible and professional manner.
Respectfully submitted by:
Greg Jordan
Chief Financial Officer
Jeff Strawn
Managing Director of Financial Services
Nicole Bradshaw, CPA
Director of Internal Audit
vi
Government Finance Officers Association
Certificate of
Achievem ent
for Excellence
in Financial
Repo rting
Presented to
City of Grapevine,
Texas
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2019
Executive Director/CEO
City of Grapevine
Organization Chart
Citizens of Grapevine
Mayor & Council
City Manager
Bruno Rumbelow
Assistant City Manager
Jennifer Hibbs
Parks & Recreation
Kevin Mitchell
Fiscal Services
Greg Jordan
Fire
Chief Darrell Brown
Public Works
Bryan Beck
Police
Chief Michael Hamlin
Library
Ruth Chiego
City Secretary
Tara Brooks
Convention and
Visitors Bureau
P.W. McCallum
Development Services
Vacant
Information Technology
Tessa Allberg
City Attorney
Boyle & Lowry Advisory Boards
Municipal Court Judge
Alan Wayland
Administration
Prevention
Operations
Training
Emergency Mgmt.
Administration
Administration
Finance
Purchasing
Municipal Court
Risk Management
Debt Service **
Utility Billing **
Utility Admin. Services **
Administration
Engineering
Streets
Traffic Operations
Environmental Services
Facility Services
Fleet Services
Water **
Wastewater **
Stormwater Drainage **
Administration
Building Inspection
Planning
Administration
Administration
Geographic Information System **
Administration
Uniform Operations
Criminal Investigations
Technical Services
Animal Control
Commercial Vehicle
Enforcement
Administration
Active Adults
Park Maintenance
Recreation
Aquatics
Athletics Programs
Recreation Programs
Hospitality Services
The REC
Lake Parks **
Administration, Sales &
Promotions, Heritage
Programs & Preservation,
Convention Center, Festivals
& Events, Grapevine Vintage
Railroad, Grapevine Visitor
Shuttle, Wine Pouring
Society,
Sister Cities Program
Economic Development
Bob Farley
Administration
Human Resources
Rachel Huitt
Golf Maintenance
Pro Shop
Golf
Russell Pulley
Administration
vii
viii
CITY OF GRAPEVINE, TEXAS
ADMINISTRATIVE OFFICIALS
Bruno Rumbelow
City Manager
Jennifer Hibbs Tara Brooks
Assistant City Manager City Secretary
Matthew Boyle Alan Wayland
City Attorney Municipal Court Judge
Greg Jordan Bryan Beck
Chief Financial Officer Director of Public Works
Vacant Darrell Brown
Director of Development Services Fire Chief
Michael Hamlin Ruth Chiego
Chief of Police Library Director
Kevin Mitchell Russell E. Pulley
Director of Parks and Recreation Director of Golf
P. W. McCallum Rachel Huitt
Executive Director, Convention & Visitors Bureau Human Resources Director
Nicole L. Bradshaw, CPA, CGMA Tessa Allberg
Internal Audit Director Chief Technology Officer
Jeff Strawn Lance Wright
Managing Director of Financial Services Purchasing Agent
Gary W. Livingston Melanie Hill
Management Services Director Risk Management Director
Robert Farley
Director of Economic Development
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and
Members of the City Council
City of Grapevine, Texas
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Grapevine, Texas (the “City”), as of and for the year ended September 30, 2020, and the
related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed
in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstat ement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
1
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely presented
component unit, each major fund, and the aggregate remaining fund information of the City of Grapevine, Texas,
as of September 30, 2020, and the respective changes in financial position, and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the United States
of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and required supplementary information, as listed in the table of contents, be presented
to supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consiste d of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory section, combining and individual nonmajor fund
financial statements and schedules, and statistical section are presented for purposes of additional analysis and
are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional pr ocedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the combining and
individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to
the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assur ance
on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 11,
2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit perf ormed in accordance with Government Auditing
Standards in considering the City’s internal control over financial reporting and compliance.
Waco, Texas
March 11, 2021
MANAGEMENT’S
DISCUSSION AND ANALYSIS
3
Management’s Discussion and Analysis
As management of the City of Grapevine (the “City”), we offer readers of the City’s financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2020. We
encourage readers to consider the information presented here in conjunction with additional information that we
have furnished in our letter of transmittal, which can be found on pages i-v of this report.
FINANCIAL HIGHLIGHTS
•The assets and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $414,250,053 (net position).
•The City’s total net position decreased by $1,972,361 from operations. $2,357,158 of this decrease
was attributable to governmental activities and an increase of $384,797 was due to business-type
activities.
•At the close of the current fiscal year, the City’s governmental funds reported combined fund
balances of $113,919,209, a decrease of $42,759,782 from the prior year.
•At the end of the current fiscal year, total fund balance for the General Fund was $11,574,295 or
20.2% of total General Fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The
City’s basic financial statements comprise three components: 1) government -wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains supplementary information
intended to furnish additional detail to support the basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s
finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets, deferred outflows (inflows) of
resources, and liabilities, with the difference reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during the fiscal year.
All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless
of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that
will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated
absences).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by
taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover
all or a significant portion of their costs through user fees and charges (business-type activities). The governmental
activities of the City include general government, public safety, culture and recreation, public works, transportation,
tourism and economic development. The business-type activities of the City include water and sewer services and
the lake enterprise activities (golf course).
The government-wide financial statements include not only the City itself (known as the primary government), but
also include the Heritage Foundation which is a legally separate entity for which the City is financially accountable.
Financial information for this component unit is reported separately from the financial information presented for the
primary government itself. The Tax Increment Reinvestment Zones Numbers One and Two, the Crime Control and
Prevention District (Crime District), and the Grapevine 4B Economic Development Corporation, although legally
separate, function for all practical purposes as departments of the City, and therefore have been included as an
integral part of the primary government.
4
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure
and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into
three categories: governmental funds, proprietary funds, and fiduciary funds. The fund financial statements for
governmental funds, proprietary funds, and fiduciary funds can be found in the financial section of this report.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government-wide financial statements. However, unlike the government-wide financial statements, governmental fund
financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, the reader may better understand
the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains 20 individual governmental funds. Information is presented separately in the governmental
fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund
balances for the General, Hotel Occupancy Tax Fund, Crime District Fund, Lake Parks Fund, 4B – Economic
Development Fund, 4B – Transit Fund, Debt Service Fund, TIF #1 Capital Projects Fund and General Facilities
and Equipment Fund, all of which are considered to be major funds.
Data from the other 11 governmental funds are combined into a single, aggregate presentation. Individual fund data
for each of these non-major governmental funds is provided in the form of combining statements in the combining and
individual fund statements and schedules section of this report.
Proprietary Funds
The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide financial statements. The City uses enterprise funds
to account for its Water and Sewer Fund, and Lake Enterprise Fund (golf course). Internal service funds are an
accounting device used to accumulate and allocate costs internally among the City’s various functions. The City
uses an internal service fund to account for its document management services. Because these services
predominantly benefit the governmental rather than business-type functions, they have been included within the
governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information for the Water and Sewer Fund and
the Lake Enterprise Fund, which are both considered to be major funds.
Fiduciary Funds
Fiduciary funds are used to account for resources held for the benefit of parties outside the City. Fiduciary funds
are not reflected in the government-wide financial statements because the resources of those funds are not
available to support the City’s own programs. The accounting used for fiduciary funds is similar to the accounting
used for proprietary funds.
Agency funds, one type of fiduciary fund, are used to report resources held by the City in a custodial capacity for
individuals, private organizations, or other governments. Agency funds are used by the City to account for funds
held for the Employee Activity Fund, the Industrial Development Corporation, and the W.D. Tate Scholarship Fund.
See Note I for additional information pertaining to fiduciary funds.
5
Notes to the Financial Statements
The notes provide additional information that is necessary to acquire a full understanding of the data provided in
the government-wide and fund financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents required
supplementary information. The required supplementary information section of this report includes budgetary
comparison schedules for the General Fund and major special revenue funds with legally adopted budgets which
include the Hotel Occupancy Tax Fund, Crime District Fund, Lake Parks Fund, 4B Economic Development Fund,
and 4B Transit Fund. This section of the report also includes schedules detailing the City’s progress in funding its
liabilities related to providing pension and OPEB benefits to its employees.
The combining and individual fund statements and schedules referred to earlier in connection with nonmajor
governmental funds are presented immediately following the required supplementary information on the City’s
pension and OPEB plans.
GOVERNMENT-WIDE OVERALL FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. As of
September 30, 2020, the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows
of resources by $414,250,053.
CITY OF GRAPEVINE’S NET POSITION
2020 2019 2020 2019 2020 2019
Current and other assets 137,636,759$ 203,336,448$ 26,612,507$ 32,287,782$ 164,249,266$ 235,624,230$
Capital assets 425,901,522 377,806,721 137,872,997 135,600,810 563,774,519 513,407,531
Total assets 563,538,281 581,143,169 164,485,504 167,888,592 728,023,785 749,031,761
Deferred outflows of
resources 16,210,158 21,967,086 1,733,305 2,302,431 17,943,463 24,269,517
Long-term liabilities 269,230,027 289,074,649 20,040,171 22,942,098 289,270,198 312,016,747
Other liabilities 22,837,219 29,328,287 2,832,957 4,842,425 25,670,176 34,170,712
Total liabilities 292,067,246 318,402,936 22,873,128 27,784,523 314,940,374 346,187,459
Deferred inflows of
resources 15,188,870 9,161,829 1,587,951 1,248,673 16,776,821 10,410,502
Net position:
Net investment
in capital assets 279,795,020 241,514,277 133,348,566 131,141,096 413,143,586 372,655,373
Restricted 69,120,093 95,250,803 3,147,224 3,713,745 72,267,317 98,964,548
Unrestricted 76,422,790)( 61,219,590)( 5,261,940 6,302,986 71,160,850)( 54,916,604)(
Total net position 272,492,323$ 275,545,490$ 141,757,730$ 141,157,827$ 414,250,053$ 416,703,317$
Governmental Activities Business-type Activities Totals
Current and other assets decreased in the governmental and business-type activities by $71,374,964 from the prior
year. The decrease in cash and investments is the largest portion of this decrease ($53,836,821). This decrease
can largely be attributed to ongoing capital projects and the spending down of available bond proceeds for these
projects. Additionally, the City had large intergovernmental receivables recorded in FY 2019. These funds were
received in FY 2020 and are available for spending on the respective capital projects.
Long-term liabilities for the City consist of bonds, contractual obligations, compensated abse nces, OPEB and
pension liabilities. Debt service payments of almost $14.5 million were made during the year to pay down the
balances of bonds and contractual obligations and to pay off the remaining balances of tax notes. The City’s pension
liability was decreased by over $18 million primarily as a result of better than projected investment earnings and the
City’s OPEB liability increased by over $10 million as a result of many factors including a change in the discount
rate from 3.82% to 2.95%.
6
The largest portion of the City’s net position, $413,143,586, reflects its investment in capital assets (e.g., land,
building, equipment, improvements, construction in progress, and infrastructure), less any debt used to acquire
capital assets still outstanding. The City uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. Although the City’s investment in capital assets is reported net
of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources,
since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position represents resources that are subject to external restrictions on how
they may be used. Restricted net position includes (1) use of impact fees for construction purposes ($3,147,224),
(2) debt service ($20,257,532), (3) capital projects ($37,640,905), (4) court security and technology ($447,682), (5)
public safety ($810,467), (6) records preservation ($12,018), (7) economic development ($9,670,370), (8)
transportation ($22,918), (9) culture and recreation ($161,635), and (10) tourism ($96,566).
For fiscal year-end 2020, the City is able to report positive balances in two categories of net position for the City as
a whole. Unrestricted net position is a deficit for the governmental activities and in total for the City. This is due in
part to the recognition of the net pension liability under the requirements of GASB Statement No. 68 , the recognition
of the net OPEB liability under GASB Statement No. 75, and also due to the fact that the City has a substantial
amount of debt related to TIF #2 which is not capital-related.
$(100,000,000) $- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000
NET INVESTMENT IN CAPITAL ASSETS
RESTRICTED
UNRESTRICTED
Net Position Comparison
2019 2020
7
Analysis of the City’s Operations
The following table provides a summary of the City’s operations for the year ended September 30, 2020, and 2019:
CITY OF GRAPEVINE’S CHANGES IN NET POSITION
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues:
Charges for services 15,420,184$ 19,951,339$ 30,280,788$ 27,601,935$ 45,700,972$ 47,553,274$
Operating grants and
contributions 3,576,140 992,824 - - 3,576,140 992,824
Capital grants and
contributions 6,732,982 23,230,376 3,714,288 6,308,642 10,447,270 29,539,018
General revenues:
Property taxes 33,160,755 30,848,837 - - 33,160,755 30,848,837
Hotel occupancy taxes 11,721,385 20,767,302 - - 11,721,385 20,767,302
Sales taxes 51,111,959 59,297,844 - - 51,111,959 59,297,844
Mixed beverage taxes 1,477,422 2,145,940 - - 1,477,422 2,145,940
Franchise taxes 6,182,482 6,898,111 - - 6,182,482 6,898,111
Investment earnings 1,893,007 3,783,555 295,942 650,207 2,188,949 4,433,762
Gain on sale of capital assets 226,500 2,075,942 - - 226,500 2,075,942
Miscellaneous 864,931 420,084 - - 864,931 420,084
Total revenues 132,367,747 170,412,154 34,291,018 34,560,784 166,658,765 204,972,938
Expenses:
General government 21,449,315 18,382,135 - - 21,449,315 18,382,135
Public safety 41,527,731 38,471,701 - - 41,527,731 38,471,701
Culture and recreation 22,432,175 21,340,649 - - 22,432,175 21,340,649
Public works 18,875,598 17,929,564 - - 18,875,598 17,929,564
Transportation 8,642,110 10,046,960 - - 8,642,110 10,046,960
Economic development 4,881,449 5,122,449 - - 4,881,449 5,122,449
Tourism 16,982,374 23,886,464 - - 16,982,374 23,886,464
Interest on long-term debt 5,822,973 5,311,983 - - 5,822,973 5,311,983
Water and sewer - - 25,227,582 23,901,013 25,227,582 23,901,013
Lake enterprise - - 2,789,819 4,159,096 2,789,819 4,159,096
Total expenses 140,613,725 140,491,905 28,017,401 28,060,109 168,631,126 168,552,014
Increases in net position
before extraordinary item
and transfers 8,245,978)( 29,920,249 6,273,617 6,500,675 1,972,361)( 36,420,924
Transfers 5,888,820 6,950,707 5,888,820)( 6,950,707)( - -
Change in net position 2,357,158)( 36,870,956 384,797 450,032)( 1,972,361)( 36,420,924
Net position, beginning 275,545,490 237,943,782 141,157,827 141,607,859 416,703,317 379,551,641
Prior period adjustment 696,009)( 730,752 215,106 - 480,903)( 730,752
Net position, beginning (restated)274,849,481 238,674,534 141,372,933 141,607,859 416,222,414 380,282,393
Net position, ending 272,492,323$ 275,545,490$ 141,757,730$ 141,157,827$ 414,250,053$ 416,703,317$
Governmental Activities Business-type Activities Totals
Governmental activities – Governmental activities decreased the City’s net position by $2,357,158 from operations.
This decrease can broadly be attributed to a decrease in general revenues such as sales tax, hotel occupancy tax,
and mixed beverage tax as well as charges for services. These decreases are directly related to the economic
impacts of COVID 19.
Fewer capital grants and contributions were received in fiscal year 2020 as these types of revenues are largely
one-time projects which are not recurring from year-to-year. There was also a decrease in capital asset donations
from developers as development slowed with the economy as a result of COVID 19.
The City’s operating expenses for 2020 increased by $121,820 or 0.1%. Some functions such as general
government, public safety and culture and recreation saw increases in operating expenses while the transportation
and tourism functions saw significant decreases. The net of these increases and decreases resulted in the overall
minor increase in expenses for the fiscal year.
8
All functions that include personnel did see increases in expenses related to the City’s OPEB plan. A net of $5.3
million in expenses related to the City’s OPEB plan were allocated across the governmental activities. Additionally,
insurance claims and premium cost increases for the fiscal year resulted in increased expenses in the general
government function of approximately $1.9 million.
The City also took advantage of downtime related to COVID 19 shutdowns to perform needed maintenance projects
throughout the City which resulted in higher expenses for culture & recreation and public works.
Tourism expenses saw a significant decline of $6,904,090 or 28.9%. The City was unable to hold its two large
festivals during the year because of COVID 19. These festivals typically bring in large numbers of tourist and visitors
to the City each year and the operating costs associated with these festivals are usually significant . Additionally,
operating cut backs were made as the tourism budget is largely funded by hotel occupancy tax revenues which saw
a significant decline because of COVID 19.
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
SALES TAXES PROPERTY TAXES CHARGES FOR
SERVICES
HOTEL OCCUPANCY
TAXES
CAPITAL GRANTS AND
CONTRIBUTIONS
FRANCHISE TAXES OTHER
Governmental Activities Revenues By Source
2020 2019
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
PUBLIC SAFETY GENERAL
GOVERNMENT
CULTURE AND
RECREATION
TOURISM PUBLIC WORKS ECONOMIC
DEVELOPMENT
TRANSPORTATION INTEREST ON LONG-
TERM DEBT
Governmental Activities -Functional Expenses Comparison
2020 2019
Business-type activities – In total, the business-type activities increased the City’s net position by $599,903. Water
and Sewer Utilities increased net position by $442,897 while Lake Enterprise (golf) increased net position by
$157,006.
9
The change in net position for the business -type activities was impacted by the Water and Sewer Fund in the
following ways: (1) The City received a significant amount of rainfall in fiscal year 2019. This rainfall led to a decrease
in charges for services and a decrease in operating expenses related to lower than normal demand. Rainfall for
fiscal year 2020 was significantly less which increased overall demand for water. This led to highe r charges for
services and also an increase in operating expenses related to the purchase, storage and treatment of water. (2)
Salary and benefit expenses decreased by approximately $2.2 million as a result of decreased OPEB expense
allocations to the fund.
The Lake Enterprise Fund (golf course) was able to keep operating revenues consistent with the prior year even
though operations were shut down for several weeks in the spring because of COVID 19. As the golf course
reopened, they saw higher than normal activity as citizens and visitors were se eking outdoor activities during the
pandemic. The Lake Enterprise Fund also saw a decrease in salary and benefits expenses of approximately $1
million as a result of decreased OPEB expense allocations to the fund.
$26,000,000
$26,500,000
$27,000,000
$27,500,000
$28,000,000
$28,500,000
$29,000,000
$29,500,000
$30,000,000
$30,500,000
2020 2019
Business-type Activities Revenue and Expense
Comparison
Operating Revenues Expenses
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental funds – The focus of the City’s governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing
requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net
resources available for discretionary use as they represent the portion of fund balance which has not yet been
limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has
been delegated authority to assign resources for use for particular purposes by the City Council.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of
$113,919,209, a decrease of $42,759,782 compared with the prior year. Unassigned fund balance is $2,437,991
(2.1%), which is available for spending at the City’s discretion. The remainder of fund balance is not available for
new spending because it is (1) nonspendable; ($1,209,459) (2) restricted for debt service, capital projects, court
security and technology, public safety, economic development, transportation, tourism, records preservation and
culture and recreation programs; ($73,427,338) (3) committed for stormwater drainage and public arts
($2,366,295); (4) or assigned for economic development, capital projects, tourism, public safety, culture and
recreation programs, and OPEB plan contributions ($34,478,126).
10
Significant changes in fund balances of major funds are as follows:
General Fund – The General Fund is the chief operating fund of the City. At the end of FY 2020, unassigned fund
balance of the General Fund was $10,252,341, while total fund balance equaled $11,574,295. As a measure of the
General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total
General Fund expenditures. Unassigned fund balance represents approximately 17.9% of total General Fund
expenditures, while the total fund balance represents approximately 20.2% of that same amount.
The fund balance of the General Fund decreased by $2,720,976 for FY 2020. Revenues decreased in the General
Fund from FY 2019 to FY 2020 by $5,552,078. Property taxes increased in the General Fund by almost $974,000
for FY 2020. This increase is primarily due to increases in the M&O portion of the tax rate even though the overall
property tax rate decreased. COVID 19 had significant impacts on almost every other revenue source for the
General Fund. Sales taxes decreased by $4.1 million or 13.7%, mixed beverage taxes decreased by almost
$669,000 or 31.2%, and licenses and permits decreased by approximately $624,000 or 31.7%. These revenues
are all heavily driven by tourism and economic activity which have all been stunted by the pandemic.
General government expenditures increased by nearly $1.9 million or 12.7%. As mentioned earlier in the discussion
about the governmental activities, general gov ernment expenditures increased for FY 2020 primarily as a result of
increases in insurance claims and premiums. These increases were offset by an overall decrease in general
operating expenditures that were reduced as City facilities were shut down for a t ime during the pandemic, travel
costs were reduced, and telework became more prevalent among nonessential City staff.
Culture and recreation expenditures increased by approximately $781,000 or 5.9%. Some of this increase can be
attributed to increased maintenance being performed in City facilities as they were shut down for COVID 19. There
was also an increase in maintenance costs related to additional areas being added for the City to mow and maintain
which include the Green Ribbon landscape projects. Ad ditionally, due to higher attendance at City parks and
facilities because of COVID 19, added maintenance and cleaning was needed to keep parks clean and safe.
Special Revenue – Hotel Occupancy Tax Fund – Fund balance in the Hotel Occupancy Tax Fund decreased for
FY 2020 by $2,542,432. This decrease can primarily be attributed to a decrease in hotel occupancy taxes received
because of COVID 19. Hotel occupancy taxes decreased by $9 million or 43.6%. Charges for services also
decreased by $4.2 million primarily as a result of the two main festivals for the City being cancelled because of
COVID 19.
Expenditures in the Hotel Occupancy Tax Fund decreased from $23.6 million in FY 2019 to $15.9 million in FY
2020. This decrease was a result of the festivals being cancelled, limited travel and events, shutdowns, and other
reduced operating costs as a result of COVID 19.
Special Revenue – Crime District Fund – Fund balance of the Crime District Fund decreased by $1,779,581. Sales
tax revenues, which are the primary funding source of the Crime District Fund, decreased by approximately $2
million as a result of COVID 19. Expenditures in the Crime District Fund decreased by over $400,000 as a result of
operating cost reductions and CARES grant funding covering additional overtime costs that resulted from COVID
19.
Special Revenue – Lake Parks Fund – Fund balance in the Lake Parks Fund decreased by $1,077,695 for FY 2020.
Revenues did increase by $924,000 from FY 2019, however, revenues were under budget due to flooding that
occurred at the Lake in FY 2019. Occupancy and attendance at the Lake Parks was up in FY 2020 once facilities
and operations were opened up with the pandemic but forced shut downs and social distancing did not allow
revenues to meet budgeted targets. Expenditures exceeded budget as additional maintenance and cleaning was
necessary to handle the higher level of park attendance with COVID 19.
Special Revenue – 4B – Economic Development – The 4B-Economic Development fund balance increased by
$384,256 over last fiscal year. Sales tax revenues decreased by over $500,000 during the year due to economic
conditions caused by COVID 19. Land was sold for economic development projects during the year. Proceeds from
this sale were $1,326,216. Additionally, the fund paid out distributions during the year related to 380 agreements
that the City has entered into. These distributions were approximately $1.9 million dollars more than the previous
fiscal year.
11
Special Revenue – 4B – Transit – The 4B-Transit fund balance increased by $5,957 over last fiscal year. Sales tax
collected in this fund has been pledged to the Fort Worth Transit Authority (the “T”). Any sales tax collections in
this fund, less half of the operating costs of the City’s visitor shuttle service, are distributed to the “T” to help
fund commuter rail service in Grapevine. Sales taxes in this fund also decreased for the current period by almost
$1.5 million because of the pandemic, and as the revenues in this fund decrease, so do the corresponding
expenditures.
Debt Service Fund – The total fund balance of $7,289,596 in the Debt Service Fund is restricted for the payment
of debt obligations. This balance has declined by $460,190 and this is attributable to the City paying more in
debt service expenditures for the year than was collected in property taxes to repay the debt.
Capital Projects – TIF #1 – The net increase in fund balance for the TIF #1 capital projects fund for FY 2020 was
$201,579. The property taxes and investment earnings collected in this fund for the year was $330,885.
Expenditures for the fund for the current year include $129,306 in community distributions to GCISD.
Capital Projects – General Facilities and Equipment – The fund balance decreased $26,221,125 from the prior
year. The primary project contributing to the capital outlay of $44,929,294 in this fund is the Grapevine Main train
station. Intergovernmental revenues of $15,389,465 were received in this fund in FY 2020 to help cover the costs
associated with the Grapevine Main train station. Additionally, general obligation bonds were issued in FY 2019
to fund the construction of animal shelter facilities, fire stations, and a multi-use facility and clubhouse at the
Grapevine Municipal Golf Course. These projects are all projected to be completed in FY 2021.
Proprietary Funds – The City of Grapevine’s proprietary funds provide the same type of information found in
the government-wide financial statements, but in more detail. Factors concerning the finances of the proprietary
funds have already been addressed in the discussion of the City’s business-type activities.
General Fund Budgetary Highlights
Significant amendment changes:
There were no changes to budgeted revenues or expenditures for the fiscal year 2020.
Significant budget variances:
All revenues are under budget for FY 2020. This is primarily the result of the economic impact of COVID 19.
Expenditures, in total, were under budget by $221,502. Unbudgeted capital outlay expenditures and maintenance
costs were incurred during the COVID 19 shut down in order to minimize impacts to the citizens of the City and
this resulted in budget overages in capital outlay and the culture and recreation function.
Unrestricted funds that had been previously assigned to capital projects funds were transferred to the General
Fund in light of the economic impacts of COVID 19. Additionally, funds allocated in the budget for capital projects
were not transferred given economic conditions.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets—The City’s investment in capital assets for its governmental and business-type activities as of
September 30, 2020, amounts to $563,774,519 (net of accumulated depreciation). This investment in capital
assets includes land, buildings, improvements, machinery and equipment, infrastructure, intangible
assets and construction in progress. The total net increase in the City’s investment in capital assets for the
current fiscal year was $50,366,988 (10%).
Major capital asset events during the current fiscal year included the following:
•Grapevine Main and Harvest Hall construction of $28,293,398 was added to construction in progress.
•Construction in progress additions of $12,422,092 were added for the rebuild/remodel of 4 fire stations,
along with $3,916,671 added for the new animal shelter.
12
• Acquisition of vehicles and equipment totaling $2,152,590, including $1,253,417 related to public safety,
$230,537 related to public works, $226,604 for IT infrastructure, and $372,738 related to culture and
recreation. Of this total amount, $451,156 remained in CIP at year-end due to delayed delivery of vehicles
and related equipment.
• Parks and recreation improvement projects of $14,094,116 were completed, including $11,177,947 for Oak
Grove Softball renovations, $1,653,129 for the Bear Creek Dog Park, $630,596 for the Green Ribbon
project, and $334,951 related to renovations to The REC.
• Street construction of $5,300,163 was added to construction in progress related to Dallas Road, and Main
Street sidewalk improvements of $268,454 were completed.
• Streets projects of $1,794,739 were completed and transferred to infrastructure assets, including
improvements to S. Dooley, Boyd Drive, and the intersection of Nash and Berry Streets.
• The Water and Sewer Fund completed $4,793,642 in projects, which extended and improved the City’s
water and sewer system. Donated water and sewer assets totaled $3,714,288.
CITY OF GRAPEVINE’S CAPITAL ASSETS AT YEAR-END
2020 2019 2020 2019 2020 2019
Land 34,496,800$ 35,136,147$ 593,970$ 593,970$ 35,090,770$ 35,730,117$
Right-of-way/easements 78,934,989 78,561,656 51,920,788 48,705,515 130,855,777 127,267,171
Construction in progress 112,876,261 71,385,628 2,501,786 5,431,218 115,378,047 76,816,846
Buildings 91,077,520 94,212,671 654,396 661,923 91,731,916 94,874,594
Improvements other
than buildings 38,538,976 25,924,027 986,992 1,163,853 39,525,968 27,087,880
Machinery and equipment 14,719,274 16,226,083 1,711,539 2,003,659 16,430,813 18,229,742
Software 93,875 - 70,075 - 163,950 -
Water storage rights - - 9,972 27,061 9,972 27,061
Infrastructure 55,163,827 56,360,509 79,423,479 77,013,611 134,587,306 133,374,120
Total 425,901,522$ 377,806,721$ 137,872,997$ 135,600,810$ 563,774,519$ 513,407,531$
Governmental Activities Business-type Activities Totals
Additional information on the City’s capital assets can be found in Note V of the notes to the financial statements.
Long-term debt—At the end of the current fiscal year, the City had total bonded debt outstanding of $172,224,068.
CITY OF GRAPEVINE’S OUTSTANDING BONDS AND NOTES PAYABLE AT YEAR-END
2020 2019 2020 2019 2020 2019
General obligation bonds 84,490,000$ 92,055,000$ 455,000$ 895,000$ 84,945,000$ 92,950,000$
Certificates of obligation 40,680,000 41,927,553 7,800,000 8,200,000 48,480,000 50,127,553
Revenue bonds 27,445,000 30,015,000 - - 27,445,000 30,015,000
Contractual obligations 3,983,240 4,755,080 - - 3,983,240 4,755,080
Tax notes - 605,000 - - - 605,000
Premium on bonds issued 7,018,360 7,844,073 352,468 406,526 7,370,828 8,250,599
163,616,600$ 177,201,706$ 8,607,468$ 9,501,526$ 172,224,068$ 186,703,232$
Governmental Activities Business-type Activities Totals
Additional information on the City’s long-term debt can be found in Note IX of the notes to the financial statements.
13
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
In the fiscal year 2021 budget, total City revenues are budgeted at $167.5 million, a decrease of $12.4 million (6.9%)
from the previous year. The City lowered the tax rate to $0.282601 per $100 of valuation which is at the 3.5% tax
cap. This represents a 0.6% reduction from the FY 2020 rate of $0.284271 per $100 of valuation.
General Fund expenditures have been decreased in the FY 2021 budget by 9.2% or $6.5 million. We have
anticipated that we will continue to see an overall impact to revenues as a result of COVID 19. Sales tax budgets
have been reduced 17% and the hotel occupancy tax budget has been reduced by 27%.
The economy of the City and the Dallas-Fort Worth Metroplex in general is expected to continue to grow and rebuild
as we continue through the pandemic. The City continues to focus on quality of life, economic development and
cultural, educational and recreational amenities the community has to offer.
The General Fund reserve requirement is expected to remain at approximately 20% of budgeted expenditures for
the fiscal year 2021. This meets the requirement of 20% of budgeted expenditures.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
The financial report is designed to provide our citizens, customers, investors and creditors with a general overview
of the City’s finances. If you have questions about this report or need additional information, contact the Finance
Division, City of Grapevine, 200 S. Main Street, Grapevine, Texas 76051.
BASIC
FINANCIAL STATEMENTS
THIS PAGE LEFT BLANK INTENTIONALLY
Component
Unit
Governmental Business-type Heritage
Activities Activities Total Foundation
ASSETS
Cash and investments 112,900,514$ 15,467,553$ 128,368,067$ 374,851$
Receivables, net:
Taxes 9,261,065 - 9,261,065 -
Accounts 3,674,602 3,288,493 6,963,095 -
Notes 3,858,000 - 3,858,000 -
Internal balances 93,830 93,830)( - -
Due from primary government - - - 9,518
Due from other governments 6,336,883 - 6,336,883 -
Inventory 546,699 72,755 619,454 -
Accrued interest 80,899 34 80,933 -
Prepaid expenses 657,316 581,312 1,238,628 -
Deposits 5,843 - 5,843 -
Restricted assets:
Cash and investments - 7,296,190 7,296,190 -
Assets held for sale 221,108 - 221,108 -
Capital assets (net of accumulated depreciation):
Non-depreciable 226,308,050 55,016,544 281,324,594 450,067
Depreciable 199,593,472 82,856,453 282,449,925 664,950
Total assets 563,538,281 164,485,504 728,023,785 1,499,386
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 6,761,426 632,301 7,393,727 -
Deferred outflows related to OPEB 8,899,397 1,056,409 9,955,806 -
Deferred loss on bond refunding 549,335 44,595 593,930 -
Total deferred outflows of resources 16,210,158 1,733,305 17,943,463 -
LIABILITIES
Accounts payable 8,663,680 1,386,145 10,049,825 84,637
Contracts and retainage payable 4,542,036 110,524 4,652,560 -
Accrued and other liabilities 3,683,731 273,202 3,956,933 -
Developer deposits 1,548,115 - 1,548,115 -
Customer deposits 54,607 - 54,607 -
Interest payable 756,599 34,096 790,695 -
Due to component unit 9,518 - 9,518 -
Due to other governments 135,621 - 135,621 -
Unearned revenue 3,443,312 - 3,443,312 8,454
Customer deposits - 1,028,990 1,028,990 -
Noncurrent liabilities:
Due in one year 12,679,044 929,919 13,608,963 -
Due in more than one year 256,550,983 19,110,252 275,661,235 -
Total liabilities 292,067,246 22,873,128 314,940,374 93,091
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 8,537,256 798,367 9,335,623 -
Deferred inflows related to OPEB 6,651,614 789,584 7,441,198 -
Total deferred inflows of resources 15,188,870 1,587,951 16,776,821 -
NET POSITION
Net investment in capital assets 279,795,020 133,348,566 413,143,586 1,115,017
Restricted for:
Use of impact fees - 3,147,224 3,147,224 -
Debt service 20,257,532 - 20,257,532 -
Capital projects 37,640,905 - 37,640,905 -
Court security and technology 447,682 - 447,682 -
Public safety 810,467 - 810,467 -
Records preservation 12,018 - 12,018 -
Economic development 9,670,370 - 9,670,370 -
Transportation 22,918 - 22,918 -
Culture and recreation 161,635 - 161,635 -
Tourism 96,566 - 96,566 -
Unrestricted 76,422,790)( 5,261,940 71,160,850)( 291,278
Total net position 272,492,323$ 141,757,730$ 414,250,053$ 1,406,295$
Primary Government
CITY OF GRAPEVINE, TEXAS
STATEMENT OF NET POSITION
SEPTEMBER 30, 2020
The accompanying notes are an integral
part of these financial statements.14
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and Contributions
Primary government:
Governmental activities:
General government 21,449,315$ 1,494,921$ 303,221$ 506,528$
Public safety 41,527,731 2,182,537 2,968,918 -
Culture and recreation 22,432,175 5,257,641 25,005 791,224
Public works 18,875,598 3,078,057 278,996 5,435,230
Transportation 8,642,110 - - -
Economic development 4,881,449 - - -
Tourism 16,982,374 3,407,028 - -
Interest on long-term debt 5,822,973 - - -
Total governmental activities 140,613,725 15,420,184 3,576,140 6,732,982
Business-type activities:
Water and sewer 25,227,582 27,223,906 - 3,714,288
Lake Enterprise 2,789,819 3,056,882 - -
Total business-type activities 28,017,401 30,280,788 - 3,714,288
Total primary government 168,631,126$ 45,700,972$ 3,576,140$ 10,447,270$
Component unit:
Heritage Foundation 410,867$ 17,570$ 106,316$ 440$
General revenues:
Taxes:
Property
Franchise
Hotel occupancy
Sales
Mixed beverage
Unrestricted investment income
Gain on sale of capital assets
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Prior period adjustment
Net position - beginning, as restated
Net position - ending
Program Revenue
CITY OF GRAPEVINE, TEXAS
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020
The accompanying notes are an integral
part of these financial statements.15
Component
Unit
Governmental
Activities
Business-type
Activities Total Heritage Foundation
19,144,645)$( -$ 19,144,645)$( -$
36,376,276)( - 36,376,276)( -
16,358,305)( - 16,358,305)( -
10,083,315)( - 10,083,315)( -
8,642,110)( - 8,642,110)( -
4,881,449)( - 4,881,449)( -
13,575,346)( - 13,575,346)( -
5,822,973)( - 5,822,973)( -
114,884,419)( - 114,884,419)( -
- 5,710,612 5,710,612 -
- 267,063 267,063 -
- 5,977,675 5,977,675 -
114,884,419)$( 5,977,675$ 108,906,744)$( -$
286,541)(
33,160,755$ -$ 33,160,755$ -$
6,182,482 - 6,182,482 -
11,721,385 - 11,721,385 -
51,111,959 - 51,111,959 -
1,477,422 - 1,477,422 -
1,893,007 295,942 2,188,949 4,204
226,500 - 226,500 -
864,931 - 864,931 2,716
5,888,820 5,888,820)( - -
112,527,261 5,592,878)( 106,934,383 6,920
2,357,158)( 384,797 1,972,361)( 279,621)(
275,545,490 141,157,827 416,703,317 1,685,916
696,009)( 215,106 480,903)( -
274,849,481 141,372,933 416,222,414 1,685,916
272,492,323$ 141,757,730$ 414,250,053$ 1,406,295$
Net (Expense) Revenue and Changes in Net Position
Primary Government
16
Hotel Crime 4B-Economic
General Occupancy Tax District Lake Parks Development
ASSETS
Cash and investments 3,099,997$ 17,976,634$ -$ -$ 11,740,031$
Receivables (net of allowances
for uncollectibles):
Accounts 1,491,750 53,674 6,346 79 35,768
Taxes 4,444,373 721,632 1,891,535 - 604,576
Accrued interest 224 1,203 - - 18
Notes - - - - -
Inventory 541,635 5,064 - - -
Due from other funds 8,099,905 135,760 - - -
Due from other governments 184,793 - 8,895 - -
Prepaid items 346,106 281,109 30,101 - -
Deposits 5,444 - - - -
Assets held for sale - 221,108 - - -
Total assets 18,214,227 19,396,184 1,936,877 79 12,380,393
LIABILITIES
Accounts payable 1,426,561 989,982 202,350 174,898 142,843
Accrued liabilities 2,637,972 280,362 688,809 18,129 22,910
Due to other funds - - 3,861,747 3,839,891 -
Due to component unit - 9,518 - - -
Due to other governments 135,170 360 - - -
Unearned revenue 1,876,029 395,150 8,895 463,604 -
Developer deposits - - - - -
Customer deposits 54,607 - - - -
Total liabilities 6,130,339 1,675,372 4,761,801 4,496,522 165,753
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 509,593 - - - -
Total deferred inflows
of resources 509,593 - - - -
FUND BALANCES (DEFICITS)
Nonspendable:
Inventory 541,635 5,064 - - -
Prepaid items 346,106 281,109 30,101 - -
Deposits 5,444 - - - -
Restricted for:
Debt service - - - - 1,402,400
Capital projects - - - - -
Court security and technology - - - - -
Economic development - - - - 7,161,115
Public safety - - - - -
Records preservation - - - - -
Tourism - 96,566 - - -
Transportation - - - - -
Culture and recreation - - - - -
Committed for:
Stormwater drainage operations - - - - -
Public arts - - - - -
Assigned for:
Economic development - - - - 3,651,125
Capital projects - - - - -
Tourism - 17,338,073 - - -
Culture and recreation - - - - -
Public safety - - - - -
OPEB 428,769 - - - -
Unassigned 10,252,341 - 2,855,025)( 4,496,443)( -
Total fund balances 11,574,295 17,720,812 2,824,924)( 4,496,443)( 12,214,640
Total liabilities, deferred
inflows of resources and
fund balances 18,214,227$ 19,396,184$ 1,936,877$ 79$ 12,380,393$
CITY OF GRAPEVINE, TEXAS
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
Special Revenue
The accompanying notes are an integral
part of these financial statements.17
Special
Revenue
General Nonmajor Total
Facilities and Governmental Governmental
4B-Transit Debt Service TIF #1 Equipment Funds Funds
-$ 7,292,194$ 9,731,542$ 34,815,307$ 28,030,256$ 112,685,961$
- 10 - 1,900 2,085,075 3,674,602
1,389,700 209,249 - - - 9,261,065
- 15 15 79,367 57 80,899
- - - 3,858,000 - 3,858,000
- - - - - 546,699
- - - - - 8,235,665
- - - 4,500,000 1,643,195 6,336,883
- - - - - 657,316
- - - - 399 5,843
- - - - - 221,108
1,389,700 7,501,468 9,731,557 43,254,574 31,758,982 145,564,041
1,256,801 33,451 129,306 3,173,687 1,132,218 8,662,097
- - - - 35,549 3,683,731
109,981 - - - 330,216 8,141,835
- - - - - 9,518
- - - - 91 135,621
- - - 8,333 691,301 3,443,312
- - - 400,000 1,148,115 1,548,115
- - - - - 54,607
1,366,782 33,451 129,306 3,582,020 3,337,490 25,678,836
- 178,421 - 4,519,301 758,681 5,965,996
- 178,421 - 4,519,301 758,681 5,965,996
- - - - - 546,699
- - - - - 657,316
- - - - - 5,444
- 7,289,596 - - 12,015,059 20,707,055
- - 6,964,341 30,126,698 4,278,933 41,369,972
- - - - 447,682 447,682
- - 2,637,910 - - 9,799,025
- - - - 810,467 810,467
- - - - 12,018 12,018
- - - - - 96,566
22,918 - - - - 22,918
- - - - 161,635 161,635
- - - - 1,555,846 1,555,846
- - - - 810,449 810,449
- - - - - 3,651,125
- - - 5,026,555 7,800,453 12,827,008
- - - - - 17,338,073
- - - - 228,981 228,981
- - - - 4,170 4,170
- - - - - 428,769
- - - - 462,882)( 2,437,991
22,918 7,289,596 9,602,251 35,153,253 27,662,811 113,919,209
1,389,700$ 7,501,468$ 9,731,557$ 43,254,574$ 31,758,982$ 145,564,041$
Capital Projects
18
THIS PAGE LEFT BLANK INTENTIONALLY
Total fund balances - governmental funds balance sheet 113,919,209$
Capital assets used in governmental activities are not reported in the funds. 425,901,522
Certain receivables will not be collected soon enough to pay for the current period's expenditures
and are, therefore, reported as deferred inflows of resources in the funds:
Property taxes 136,244
Property tax penalties and interest 223,777
Court fines and fees 153,221
Ambulance billing 51,975
Intergovernmental receivables 5,198,492
Franchise Fees 80,366
Other 121,921
An internal service fund is used to charge the cost of document management equipment
acquisition and maintenance to individual funds.The assets and liabilities of the internal service
fund are included in governmental activities.212,970
Accrued bond interest is not due and payable in the current period and,therefore,is not reported
in the funds.756,599)(
Retainage payable is not due and payable in the current period and,therefore,is not reported in
the funds.4,542,036)(
Long-term liabilities and deferred losses on bond refundings,reported as deferred outflows of
resources,are not due and payable in the current period and,therefore,are not reported in the
funds. A summary of these items are as follows:
Long-term liabilities:
Bonds payable 161,543,360)(
Compensated absences 4,554,556)(
Contractual obligations 2,073,240)(
Deferred outflows of resources:
Deferred losses on bond refundings 549,335
Included in the items related to long-term liabilities is the recognition of the City's net pension
liability.The net position related to pensions included a deferred outflows of resources in the
amount of $6,761,426,a deferred inflows of resources in the amount of $8,537,256,and the net
pension liability of $33,474,898.35,250,728)(
Included in the items related to long-term liabilities is the recognition of the City's net OPEB
liability.The net position related to OPEB included a deferred outflows of resources in the amount
of $8,899,397,a deferred inflows of resources in the amount of $6,651,614,and the net OPEB
liability of $67,583,973.65,336,190)(
Net position of governmental activities 272,492,323$
SEPTEMBER 30, 2020
Amounts reported for governmental activities in the Statement of Net Position are different because:
CITY OF GRAPEVINE, TEXAS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
The accompanying notes are an integral
part of these financial statements.19
Hotel Crime 4B-Economic
General Occupancy Tax District Lake Parks Development
REVENUES
Property tax 12,740,172$ -$ -$ -$ -$
Hotel occupancy tax - 11,721,385 - - -
Sales tax 25,758,869 - 12,501,687 - 3,872,769
Mixed beverage tax 1,477,422 - - - -
Franchise tax 6,216,566 - - - -
Licenses and permits 1,344,611 - - - -
Intergovernmental 326,563 - 16,671 252 -
Charges for services 5,087,860 3,407,028 - 2,252,448 60
Fines and forfeitures 1,012,037 - 52,800 - -
Investment income 152,003 261,950 20,682 - 104,318
Contributions - - - - -
Miscellaneous 539,990 22,582 4,346 4,888 -
Total revenues 54,656,093 15,412,945 12,596,186 2,257,588 3,977,147
EXPENDITURES
Current:
General government 17,399,113 - 178,098 - -
Public safety 16,358,908 - 17,559,508 - -
Culture and recreation 14,080,930 - - 2,587,990 -
Public works 8,686,679 - - - -
Tourism - 15,649,237 - - -
Economic development - - - - 3,211,713
Transportation - - - - -
Capital outlay 734,516 199,652 44,985 57,400 -
Debt service:
Principal - - - - -
Interest - - - - -
Fiscal agent charges 3,675 1,816 - - -
Total expenditures 57,263,821 15,850,705 17,782,591 2,645,390 3,211,713
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,607,728)( 437,760)( 5,186,405)( 387,802)( 765,434
OTHER FINANCING SOURCES (USES)
Transfers in 7,817,342 336,524 3,406,824 - -
Transfers out 7,515,828)( 2,441,196)( - 689,893)( 1,707,394)(
Sale of capital assets 132,665 - - - 1,326,216
Insurance recoveries 42,374 - - - -
Total other financing sources
and uses 476,553 2,104,672)( 3,406,824 689,893)( 381,178)(
NET CHANGE IN FUND BALANCES 2,131,175)( 2,542,432)( 1,779,581)( 1,077,695)( 384,256
FUND BALANCES, BEGINNING 14,295,271 20,263,244 1,045,343)( 3,418,748)( 11,830,384
PRIOR PERIOD ADJUSTMENT 589,801)( - - - -
FUND BALANCES, BEGINNING,
RESTATED 13,705,470 20,263,244 1,045,343)( 3,418,748)( 11,830,384
FUND BALANCES, ENDING 11,574,295$ 17,720,812$ 2,824,924)$( 4,496,443)$( 12,214,640$
CITY OF GRAPEVINE, TEXAS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
Special Revenue
The accompanying notes are an integral
part of these financial statements.20
Special
Revenue
General Nonmajor Total
Facilities and Governmental Governmental
4B-Transit Debt Service TIF #1 Equipment Funds Funds
-$ 12,865,818$ 246,958$ -$ 7,296,659$ 33,149,607$
- - - - - 11,721,385
8,978,634 - - - - 51,111,959
- - - - - 1,477,422
- - - - 191,406 6,407,972
- - - - - 1,344,611
- - - 15,389,465 6,337,940 22,070,891
- - - - 1,796,805 12,544,201
- - - - 60,063 1,124,900
5,957 118,835 83,927 753,948 406,031 1,907,651
- - - - 124,312 124,312
- - - 300,613 29,219 901,638
8,984,591 12,984,653 330,885 16,444,026 16,242,435 143,886,549
- - - 206,576 194,679 17,978,466
- - - 362,235 2,604,147 36,884,798
- - - - 1,914,166 18,583,086
- - - 1,065,310 2,967,732 12,719,721
- - - - - 15,649,237
- - 129,306 - 1,510,250 4,851,269
8,642,110 - - - - 8,642,110
- - - 44,929,294 12,644,253 58,610,100
- 10,337,553 - - 2,421,840 12,759,393
- 5,368,339 - - 1,182,564 6,550,903
- 126,015 - 1,092 1,782 134,380
8,642,110 15,831,907 129,306 46,564,507 25,441,413 193,363,463
342,481 2,847,254)( 201,579 30,120,481)( 9,198,978)( 49,476,914)(
- 2,387,064 - 3,892,208 4,222,853 22,062,815
336,524)( - - - 3,483,160)( 16,173,995)(
- - - 7,148 5,050 1,471,079
- - - - 10,868 53,242
336,524)( 2,387,064 - 3,899,356 755,611 7,413,141
5,957 460,190)( 201,579 26,221,125)( 8,443,367)( 42,063,773)(
16,961 7,749,786 9,400,672 61,374,378 36,212,386 156,678,991
- - - - 106,208)( 696,009)(
16,961 7,749,786 9,400,672 61,374,378 36,106,178 155,982,982
22,918$ 7,289,596$ 9,602,251$ 35,153,253$ 27,662,811$ 113,919,209$
Capital Projects
CITY OF GRAPEVINE, TEXAS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
21
Net change in fund balances - total governmental funds 42,063,773)$(
The net revenue/(expense)of certain activities of internal service funds are reported with
governmental activities. This is the change in net position of the internal service fund.70,682
Governmental funds report capital outlays as expenditures.However,in the Statement of
Activities the cost of those assets is allocated over their estimated useful lives and reported
as depreciation. This is the amount of capital outlay recorded in the current period.57,175,697
Governmental funds do not recognize capital assets contributed by other entities.However,
in the Statement of Activities,the acquisition cost of those assets is recognized as revenue,
then depreciated over their estimated useful lives.2,436,115
Depreciation on capital assets is reported in the Statement of Activities but does not require
the use of current financial resources.Therefore,depreciation is not reported as
expenditures in the governmental funds.13,555,263)(
The net effect of various miscellaneous transactions involving capital assets (i.e.,sales,trade-
ins, and donations) is to decrease net position.1,378,692)(
The issuance of long-term debt (e.g.bonds)provides current financial resources to
governmental funds,while the repayment of the principal of long-term debt consumes the
current financial resources of governmental funds.Neither transaction,however,has any
effect on net position.Also,governmental funds report the effect of premiums,discounts,and
similar items when debt is first issued,whereas the amounts are deferred and amortized in
the Statement of Activities.This amount is the net effect of these differences in the treatment
of long-term debt and related items.
Repayment of principal of long-term debt 12,759,393
Amortization of:
Premium on bond issuance 825,713
Loss on refunding 134,817)(
Interest is accrued in the government-wide financial statements but not at the fund level.This
represents the change in the accrual during the period.37,034
Current year changes in certain long-term liabilities do not require the use of current financial
resources and, therefore, are not reported as expenditures in governmental funds.
Compensated absences liability 352,699)(
Net OPEB liability 5,261,614)(
Net Pension liability 224,677
Retainage payable 1,695,185
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.14,834,796)(
Change in net position of governmental activities 2,357,158)$(
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Amounts reported for governmental activities in the Statement of Activities are different because:
CITY OF GRAPEVINE, TEXAS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
TO THE STATEMENT OF ACTIVITIES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
The accompanying notes are an integral
part of these financial statements.22
Governmental
Activities
Water Lake Internal Service
and Sewer Enterprise Total Fund
ASSETS
Current assets:
Cash and cash equivalents 15,467,553$ -$ 15,467,553$ 214,553$
Receivables, net 3,256,973 31,520 3,288,493 -
Accrued interest 34 - 34 -
Prepaid items 581,312 - 581,312 -
Inventory - 72,755 72,755 -
Due from other funds 396,400 - 396,400 -
Total current assets 19,702,272 104,275 19,806,547 214,553
Noncurrent assets:
Restricted cash and investments:
Bond construction 4,148,966 - 4,148,966 -
Impact fees 3,147,224 - 3,147,224 -
Total restricted cash
and investments 7,296,190 - 7,296,190 -
Capital assets:
Land 548,132 45,838 593,970 -
Easements 51,920,788 - 51,920,788 -
Construction in progress 2,478,934 22,852 2,501,786 -
Buildings 485,345 2,105,843 2,591,188 -
Improvements other than
buildings - 8,622,265 8,622,265 -
Infrastructure 134,041,200 - 134,041,200 -
Vehicles, machinery and
equipment 4,187,561 1,161,844 5,349,405 97,563
Water storage rights 683,547 - 683,547 -
Computer software 70,102 - 70,102 -
Less accumulated depreciation 58,399,873)( 10,101,381)( 68,501,254)( 20,754)(
Net capital assets 136,015,736 1,857,261 137,872,997 76,809
Total noncurrent assets 143,311,926 1,857,261 145,169,187 76,809
Total assets 163,014,198 1,961,536 164,975,734 291,362
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to
pensions 468,710 163,591 632,301 -
Deferred outflows related to OPEB 722,783 333,626 1,056,409 -
Deferred loss on bond refunding 44,595 - 44,595 -
Total deferred outflows
of resources 1,236,088 497,217 1,733,305 -
Business-type Activities - Enterprise Funds
SEPTEMBER 30, 2020
CITY OF GRAPEVINE, TEXAS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
The accompanying notes are an integral
part of these financial statements.23
Governmental
Activities
Water Lake Internal Service
and Sewer Enterprise Total Fund
LIABILITIES
Current liabilities:
Accounts payable 1,227,032$ 159,113$ 1,386,145$ 1,583$
Accrued liabilities 195,062 78,140 273,202 -
Due to other funds - 490,230 490,230 -
Accrued bond interest payable 34,096 - 34,096 -
Retainage payable 110,524 - 110,524 -
Compensated absences 69,154 765 69,919 -
Bonds payable 860,000 - 860,000 -
Customer deposits 1,028,990 - 1,028,990 -
Total current liabilities 3,524,858 728,248 4,253,106 1,583
Noncurrent liabilities:
Bonds payable 7,747,468 - 7,747,468 -
Net OPEB liability 5,488,973 2,533,622 8,022,595 -
Net pension liability 2,320,519 809,912 3,130,431 -
Compensated absences 106,693 103,065 209,758 -
Total noncurrent liabilities 15,663,653 3,446,599 19,110,252 -
Total liabilities 19,188,511 4,174,847 23,363,358 1,583
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to
to pensions 591,812 206,555 798,367 -
Deferred inflows related to OPEB 540,225 249,359 789,584 -
Total deferred inflows
of resources 1,132,037 455,914 1,587,951 -
NET POSITION
Net investment in capital assets 131,491,305 1,857,261 133,348,566 76,809
Restricted for:
Impact fees 3,147,224 - 3,147,224 -
Unrestricted 9,291,209 4,029,269)( 5,261,940 212,970
Total net position 143,929,738$ 2,172,008)$( 141,757,730$ 289,779$
Business-type Activities - Enterprise Funds
SEPTEMBER 30, 2020
(Continued)
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
CITY OF GRAPEVINE, TEXAS
The accompanying notes are an integral
part of these financial statements.24
Governmental
Activities
Water Lake Internal Service
and Sewer Enterprise Total Fund
OPERATING REVENUES
Charges for services 26,439,432$ 3,036,752$ 29,476,184$ 127,056$
Miscellaneous 784,474 20,130 804,604 -
Total operating revenues 27,223,906 3,056,882 30,280,788 127,056
OPERATING EXPENSES
Salaries and benefits 2,990,220 1,019,152 4,009,372 -
Water purchases, storage,
and treatment 10,503,455 - 10,503,455 -
Refuse collections 2,284,889 - 2,284,889 -
Maintenance, repairs, and supplies 2,332,763 457,032 2,789,795 43,790
General and administrative 3,613,044 824,800 4,437,844 -
Depreciation 3,237,669 488,835 3,726,504 14,251
Total operating expenses 24,962,040 2,789,819 27,751,859 58,041
OPERATING INCOME (LOSS)2,261,866 267,063 2,528,929 69,015
NONOPERATING REVENUES
(EXPENSES)
Investment income 294,536 1,406 295,942 1,667
Interest and fiscal agent charges 265,542)( - 265,542)( -
Total nonoperating revenues
(expenses)28,994 1,406 30,400 1,667
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS 2,290,860 268,469 2,559,329 70,682
Capital contributions 3,714,288 - 3,714,288 -
Transfers out 5,777,357)( 111,463)( 5,888,820)( -
Total capital contributions
and transfers 2,063,069)( 111,463)( 2,174,532)( -
CHANGE IN NET POSITION 227,791 157,006 384,797 70,682
TOTAL NET POSITION, BEGINNING 143,486,841 2,329,014)( 141,157,827 219,097
PRIOR PERIOD ADJUSTMENT 215,106 - 215,106 -
NET POSITION, BEGINNING, AS
RESTATED 143,701,947 2,329,014)( 141,372,933 219,097
TOTAL NET POSITION, ENDING 143,929,738$ 2,172,008)$( 141,757,730$ 289,779$
CITY OF GRAPEVINE, TEXAS
Business-type Activities - Enterprise Funds
FOR THE YEAR ENDED SEPTEMBER 30, 2020
IN NET POSITION - PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES
The accompanying notes are an integral
part of these financial statements.25
Governmental
Activities
Water Lake Internal Service
and Sewer Enterprise Total Fund
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from customers 26,950,421$ 3,083,735$ 30,034,156$ -$
Receipts from interfund charges for
document management services - - - 127,056
Cash paid to employees 3,790,758)( 1,388,450)( 5,179,208)( -
Cash paid to suppliers
for goods and services 20,965,931)( 1,478,758)( 22,444,689)( 48,076)(
Net cash provided
by operating activities 2,193,732 216,527 2,410,259 78,980
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal repayment on bonds 840,000)( - 840,000)( -
Interest and related fees
paid on long-term debt 287,570)( - 287,570)( -
Acquisition and construction
of capital assets 2,272,481)( 106,478)( 2,378,959)( 40,825)(
Net cash used by capital
and related financing activities 3,400,051)( 106,478)( 3,506,529)( 40,825)(
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest received on
investments and cash equivalents 296,266 1,414 297,680 1,677
Net cash provided
by investing activities 296,266 1,414 297,680 1,677
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfer out 5,777,357)( 111,463)( 5,888,820)( -
Net cash used by noncapital
financing activities 5,777,357)( 111,463)( 5,888,820)( -
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 6,687,410)( - 6,687,410)( 39,832
CASH AND CASH EQUIVALENTS, 29,451,153 - 29,451,153 174,721
BEGINNING
CASH AND CASH EQUIVALENTS, 22,763,743$ -$ 22,763,743$ 214,553$
ENDING
(Including $7,296,190 of restricted cash and cash equivalents in the Water and Sewer Fund)
STATEMENT OF CASH FLOWS
CITY OF GRAPEVINE, TEXAS
Business-type Activities - Enterprise Funds
FOR THE YEAR ENDED SEPTEMBER 30, 2020
PROPRIETARY FUNDS
The accompanying notes are an integral
part of these financial statements.26
Governmental
Activities
Water Lake Internal Service
and Sewer Enterprise Total Fund
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING
ACTIVITIES
Operating income 2,261,866$ 267,063$ 2,528,929$ 69,015$
Adjustments to reconile operating
income to net cash provided (used)
by operating activities:
Depreciation 3,237,669 488,835 3,726,504 14,251
(Increase) decrease in assets:
Customer receivable 90,344 26,853 117,197 -
Prepaid items 541,056)( - 541,056)( -
Due from other funds 396,400)( - 396,400)( -
Inventories - 11,592 11,592 -
Increase (decrease) in liabilities:
Accounts payable 1,690,724)( 3,312)( 1,694,036)( 4,286)(
Accrued liabilities 242,861)( 6,886)( 249,747)( -
Other liabilities - 205,206)( 205,206)( -
Customer deposits 32,571 - 32,571 -
Net OPEB liability 560,966)( 358,223)( 919,189)( -
Net pension liability 12,110)( 16,636)( 28,746)( -
Compensated absences 15,399 12,447 27,846 -
Total adjustments 68,134)( 50,536)( 118,670)( 9,965
Net cash provided
by operating activities 2,193,732$ 216,527$ 2,410,259$ 78,980$
SCHEDULE OF NON-CASH CAPITAL AND
RELATED FINANCING ACTIVITIES
Contributions of capital assets 3,714,288$ -$ 3,714,288$ -$
Business-type Activities - Enterprise Funds
FOR THE YEAR ENDED SEPTEMBER 30, 2020
(Continued)
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
CITY OF GRAPEVINE, TEXAS
The accompanying notes are an integral
part of these financial statements.27
Agency
ASSETS
Cash and cash equivalents 182,431$
Total assets 182,431
LIABILITIES
Due to beneficiary 182,431
Total liabilities 182,431$
CITY OF GRAPEVINE, TEXAS
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
FIDUCIARY FUNDS
SEPTEMBER 30, 2020
The accompanying notes are an integral
part of these financial statements.28
29
CITY OF GRAPEVINE, TEXAS
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2020
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Grapevine (“City”) is a municipal corporation incorporated under Article XI of the Texas
Constitution (Home Rule Amendment). The City operates under a Council-Manager form of government
and provides such services as are authorized by its charter to advance the welfare, health, safety, and
convenience of its citizens.
The accounting and reporting policies of the City relating to the funds included in the accompanying
financial statements conform to generally accepted accounting principles applic able to state and local
governments. The following represents the more significant accounting and reporting policies and
practices used by the City.
A. Reporting Entity
The accompanying financial statements present the City and its component units, entities for which
the City is considered to be financially accountable. Blended component units, although legally
separate entities, are, in substance, part of the City’s operations and are appropriately presented as
funds of the primary government. Discretely presented component units, on the other hand, are
reported in a separate column in the government-wide financial statements to emphasize they are
legally separate from the City.
Based on these criteria, the financial informati on of the following entities has been blended or
discretely presented within the financial statements.
Blended Component Units
Grapevine Tax Increment Financing District Reinvestment Zone Number One and Two (the “TIFs”)
were formed to finance and make public improvements under the authority of the Tax Increment
Financing Act. The TIFs are governed by two separate boards of directors that are substantively the
same as the City Council. The chairman of the board is also designated by the City Council. The City
is obligated for the debts of both TIFs.
The Grapevine Crime Control and Prevention District (Crime District) was established to account for
the accumulation and use of sales tax proce eds designated for crime reduction programs. One-half
(1/2) cent of local sales and use tax within the district funds the Crime District. The Board of Directors
of the Crime Control and Prevention District is substantively the same as the City Council. The City is
entitled to and can otherwise access all the resources of the Crime District.
The Grapevine 4B Economic Development Corporation consists of two funds. The 4B Transit Fund
accounts for funds designated for Grapevine’s participation in the commuter rail development project
with the Fort Worth Transit Authority (the “T”). The 4B Economic Development Fund accounts for
funds used to stimulate the local economy, development, and redevelopment opportunities. One-half
(1/2) cent local sales and use tax within the City funds these two blended component units. Three
eighths (3/8th) of one cent of the local sales tax is used to fund the 4B Transit Fund. One eight h (1/8th)
of one cent of the local sales tax is used to fund the 4B Economic Development Fund. The Board of
Directors of the Grapevine 4B Economic Development Corporation include citizens as members but
is substantively the same as the City Council. The City is entitled to and can otherwise access all the
resources of the Grapevine 4B Economic Development Corporation.
Separate financial statements for the TIF funds, Crime Control and Prevention District, the 4B Transit
Fund, and the 4B Economic Development Fund are not prepared.
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Discretely Presented Component Unit
Grapevine Heritage Foundation (the “Foundation”) is a Texas nonprofit corporation governed by a 9-
member board of directors appointed by the City Council, which includes a City Council member and
the Director of the City’s Convention and Visitor’s Bureau. The Foundation’s operating budget is
subject to the approval of the City Council. The City is able to impose its will on the Foundation. The
board is not substantively the same as the City Council. The Foundation does not provide services to
the City.
Separate financial statements are not prepared for the Heritage Foundation.
B. Government-wide and Fund Financial Statements
The basic financial statements include both government-wide (based on the City as a whole) and
fund financial statements. The government-wide financial statements (i.e., the statement of net
position and the statement of activities) report information on all the nonfiduciary activities of the
primary government and its component units. For the most part, the effect of interfund activity has
been removed from these statements. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support. Likewise, the primary government is
reported separately from certain legally separate component units for which the primary government
is financially accountable.
The government-wide statement of activities demonstrates the degree to which the direct expenses of a
functional category (public safety, culture and recreation, tourism, etc.) or segment are offset by
program revenues. Direct expenses are those that are clearly identifiable with specific function or
segment. Program revenues include (1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment, and
(2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues
are reported instead as general revenues.
Separate fund based financial statements are provided for governmental funds, proprietary funds,
and fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are reported
as separate columns in the fund financial statements. The non-major funds are aggregated in a
separate column in the fund financial statements. The non-major funds are detailed in the
supplementary information section of this report.
The City’s fiduciary funds are presented in the fund financial statements by type. Since these assets
are being held for the benefit of a third party and cannot be used to address activities or obligations of
the City, these funds are not incorporated into the government-wide statements.
The government-wide focus is more on the sustainability of the City as an entity and the change in
aggregate financial position resulting from the activities of the fiscal period. The focus of the fund
financial statements is on the major individual funds of the governmental and business -type
categories, as well as the fiduciary funds (by category). Each presentation provides valuable
information that can be analyzed and compared to enhance the usefulness of the information.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenue in the year for which they are levied. Grants and similar items are recognized
as revenue as soon as all eligibility requirements imposed by the provider have been met.
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Governmental fund level financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available whe n they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the City considers revenues to be available if they are collected within 60 days of
the end of the current fiscal period. In applying the susceptible to accrual concept to
intergovernmental revenue, the legal and contractual requirements of the numerous individual
programs are used as guidance. Generally, monies must be expended on a specific purpose or
project before any amounts will be paid to the City; therefore, revenues are recognized based upon
the expenditures recorded. Ad valorem taxes are recognized as revenues in the year for which they
are levied. Sales taxes, franchise taxes, hotel occupancy taxes, charges for services and fines are
recognized as revenue as earned, when measurable and available. Licenses, permits, and
miscellaneous revenues (except earnings on investments) are recorded as revenues when received
in cash because they are generally not measurable u ntil received. Investment earnings are recorded
as earned since they are measurable and available.
All proprietary funds are accounted for using the economic resources measurement focus and the
accrual basis of accounting. With this measurement focus, all assets, deferred outflows of resources,
liabilities and deferred inflows of resources associated with the operation of these funds are included
on the statement of net position. Proprietary fund-type operating statements present increases (e.g.,
revenues) and decreases (e.g., expenses) in net position. Proprietary funds distinguish operating
revenues and expenses from nonoperating items. Operating revenues and expenses generally result
from providing services and producing and delivering goods in connectio n with a proprietary fund’s
principal ongoing operations. The principal operating revenues of the City’s water and sewer and
municipal golf course are charges to customers for sales and services. Operating expenses for the
enterprise funds include the cost of sales and services, administrative expenses, and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as non -operating
revenues and expenses.
During the course of operations, the City has activity between funds for various purposes. Any
residual balances outstanding at year-end are reported as due from/to other funds and advances
to/from other funds. While these balances are reported in fund financial statements, certain
eliminations are made in the preparation of the government-wide financial statements. Balances
between the funds included in governmental activities (i.e., the governmental funds) are eliminated so
that only the net amount is included as internal balances in the governmental activities colum n.
Similarly, balances between the funds included in business -type activities (i.e., the enterprise funds)
are eliminated so that only the net amount is included as internal balances in the business -type
activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In fund
financial statements, these amounts are reported at gross amounts as transfers in/out. While reported
in fund financial statements, certain eliminations are made in the preparation of the government -wide
financial statements. Transfers between the funds included in governmenta l activities are eliminated
so that only the net amount is included as transfers in the governmental activities column. Similarly,
balances between the funds included in business -type activities are eliminated so that only the net
amount is included as transfers in the business-type activities column. However, interfund services
provided and used are not eliminated in the process of consolidation.
Governmental Funds
The focus of governmental fund measurement (in the fund financial s tatements) is upon
determination of financial position and changes in financial position (sources, uses, and balances of
financial resources) rather than upon net income. The following is a description of the major
governmental funds of the City:
The City reports the following major governmental funds:
The General Fund accounts for several of the City’s primary services (general
administration, police administration, fire, public works, libraries, culture and recreation,
etc.) and is the primary operating fund of the City.
32
The Hotel Occupancy Tax Fund is a special revenue fund that accounts for all hotel
occupancy tax revenues that are restricted by state statute and can only be used on
expenditures related to tourism activities. Additional local revenues generated though
tourism activities are accumulated in this fund and are assigned for use on expenditures
related to tourism.
The Crime District Fund is a special revenue fund that accounts for the accumulation and
use of sales tax restricted for crime reduction programs.
The Lake Parks Fund is a special revenue fund that accounts for the operations of the
City’s Parks and Recreation Department at Grapevine Lake.
The 4-B Economic Development Fund accounts for the accumulation of sales tax
restricted for economic development projects and local funds assigned by the City to
stimulate the local economy, development, and redevelopment.
The 4B Transit Fund is a special revenue fund that accounts for the accumulation of sales
tax restricted to fund the City’s participation in the commuter rail development project with
the Fort Worth Transit Authority (the "T").
The Debt Service Fund is used to account for the accumulation of restricted property tax
resources levied for the payment of general long-term debt principal, interest, and related
costs of governmental funds.
The Tax Increment Financing (TIF) #1 Capital Projects Fund is used to account for
capital acquisition and construction, economic incentives, and other expenditures
authorized by the TIF #1 Board of Directors.
The General Facilities and Equipment Fund is a capital projects fund used to account
for the general financing, acquisition, construction and improvements of the City’s
buildings and capital equipment.
Proprietary Funds
The focus of proprietary fund measurement is upon determination of operating income, changes in
net position, financial position, and cash flows, which is similar to businesses . The following is a
description of the major proprietary funds of the City:
The Water and Sewer Fund accounts for the operation of the City’s water and sewer
utility activities including administration, operation and maintenance of the water and
sewer system, and billing and collection activities. All costs are financed through charges
made to utility customers with rates reviewed regularly and adjusted , if necessary, to
ensure integrity of the fund.
The Lake Enterprise Fund includes the operations of the City’s municipal golf course.
The Internal Service Fund accounts for revenues and expenses related to document
management services provided to parties inside the City on a cost -reimbursement basis.
Because the principal users of the internal services are accounted for in the City’s
governmental activities, this fund is included in the “Governmental Activities” column of
the government-wide financial statements.
Fiduciary Funds
Agency funds are used by the City to report the assets held in an agency capacity for external
individuals or organizations including the Industrial Development Corporation, the Employee Activity
Fund, and W.D. Tate Scholarship Fund. The donations and other contributions received by the City
that are being held for these organizations do not belong to the City and cannot be spent to further
the City’s own objectives. Agency funds report only assets and liabilities and, therefore, have no
measurement focus.
33
D. Assets, liabilities, deferred outflows/inflows of resources, and net pos ition/fund balance
1. Cash and cash equivalents
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits
and short-term investments with original maturities of three months or less from the date of
acquisition.
2. Investments
Investments of the City are reported at fair value, except for the position in investment pools.
Investment pools are reported at the net asset value per share (which approximates fair value)
even though it is calculated using the amortized cost method.
3. Property Taxes and Other Receivables
The City’s property tax is levied each October 1, on the assessed value listed as of the prior
January 1 for all real property located in the City. The appraisal of property within the City is the
responsibility of the Central Appraisal Districts of Dallas, Denton, and Tarrant Counties as
required by legislation passed by the Texas Legislature. The Appraisal Districts are required
under such legislation to assess all property within their Appraisal District on the basis of 100%
of its appraised value and is prohibited from applying any assessment ratios. The assessed
value upon which the completed tax year 2019 levy was based was approximately
$9,111,845,629. The value of property within the Appraisal District must be revie wed every five
years; however, the City may, at its own expense, require annual reviews of appraised values.
The City may challenge appraised values established by the Appraisal District through various
appeals and, if necessary, legal action.
General property taxes are limited by the Texas Constitution to $2.50 per $100 of assessed
valuation. The combined tax rate to finance maintenance and operations and debt service for
the year ended September 30, 2020, was $0.284271 per $100 of assessed valuation.
Property taxes attach as an enforceable lien on property as of January 1 following the levy
date. Taxes are due by January 31 following the levy date. Property taxes levied for 2020 are
recorded as receivables, net of estimated uncollectibles. The collections during 2020 and those
considered “available” at year-end are recognized as revenues in 2020. The City considers
property taxes available if they are collected within 60 days after year-end. Prior year levies were
recorded using these same principles. The remaining receivables are reflected as deferred
inflows of resources in the fund financial statements.
Property taxes are imposed nonexchange revenues. Assets from imposed no nexchange
transactions are recorded when the entity has enforceable legal claim to the asset, or when the
entity receives resources, whichever comes first. The enforceable legal claim date for property
taxes is the assessment date. The assessment date has been designated in the enabling
legislation as October 1.
4. Inventories and Prepaid Items
Inventories are valued at average cost on a first-in, first-out basis. Inventories in the General
Fund are recorded using the consumption method (i.e., recorded as an expenditure when used
rather than when purchased).
Prepaid items are payments made by the City in the current year to provide services occurring
in the subsequent fiscal year. A corresponding portion of fund balance is shown as
nonexpendable in governmental funds to indicate it is not available for other subsequent
expenditures. Prepaid items are defined as payments of greater than $5,000 that benefit future
periods. The cost of prepaid items is recorded as expenditures/expenses when consumed
rather than when purchased.
34
5. Restricted Assets
Certain proceeds of the City’s general obligation bonds and certificates of obligation are
classified as restricted assets on the balance sheet because their use is limited by applicable
bond restrictions. Also included in restricted assets are impact fees , which are restricted for use
in infrastructure projects.
6. Assets Held for Sale
Assets held for sale in the Hotel Occupancy Tax Fund consist of properties that are owned by
the City which are being held for redevelopment. These assets are valued at estimated
realizable value or historical cost, whichever is less.
7. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), are reported in the applicable governmental or business -
type activities column in the government-wide financial statements. Capital assets, other than
infrastructure, are defined by the City as assets with an initial, individual cost of more than
$5,000 and an estimated useful life in excess of two years. Infrastructure assets are defined by
the City as assets costing in excess of $50,000 that have an estimated useful life in excess of
two years. Such assets are recorded at historical cost if purchased or constructed. Donated
capital assets are recorded at acquisition cost at the date of donation. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend assets
lives are not capitalized.
Depreciation has been provided on a straight-line basis over the estimated useful lives of the
assets.
The estimated useful lives are as follows:
Assets Years
Buildings 7-40
Water and sewer system 30-50
General infrastructure 20-30
Improvements other than buildings 10-20
Machinery and equipment 3-10
Water storage rights 40
Other intangibles 3-20
Motor vehicles 3-10
8. Deferred Inflows and Outflows of Resources
In addition to assets, the statement of net position and/or balance sheet will sometimes report a
separate section for deferred outflows of resources. This separate financial statement element,
deferred outflows of resources, represents a consumption of ne t position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until
then. The City has the following items that qualify for reporting in this category.
• Deferred loss on debt refundings – A deferred loss on refunding results from the difference in
the carrying value of refunded debt and its reacquisition price. This amount is deferred and
amortized over the shorter of the life of the refunded or refunding debt.
• Pension and OPEB contributions after measurement date – These contributions are deferred
and recognized in the following fiscal year.
• Changes in actuarial assumptions and other inputs included in determining the pension and
OPEB liability – This difference is deferred and recognized over the estimated average
remaining lives of all members determined as of the measurement date.
35
• Differences between expected and actual economic experience for the City’s pension and
OPEB plan – These effects on the pension and OPEB liability are deferred and amortized
over a closed period equal to the average of the expected remaining service lives of all
employees that are provided with benefits through the pension plan (active employees and
inactive employees).
In addition to liabilities, the balance sheet will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of
fund balance that applies to a future period(s) and, therefore, will not be recognized as an
inflow of resources (revenue) until that time. The City has one type of item that arises only
under the modified accrual basis of accounting that qualifies for reporting in this category.
Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance
sheet.
In addition, the City has deferred inflows of resources that are required to be reported on the
Statements of Net Position under the full accrual basis of accounting. Deferred inflows of
resources reported in the Statements of Net Position are as follows:
• Differences between expected and actual economic experience for the City’s pension and
OPEB plans – These effects on the total pension liability are deferred and amortized over a
closed period equal to the average of the expected remaining service lives of all employees
that are provided with benefits through the pension plan (active employees and inactive
employees).
• Changes in actuarial assumptions and other inputs included in determining the pension and
OPEB liabilities – This difference is deferred and recognized over the estimated average
remaining lives of all members determined as of the measurement date.
• Difference in projected and actual earnings on pension and OPEB assets – This difference is
deferred and amortized over a closed five-year period.
9. Compensated Absences
It is the City’s policy to permit employees to accumulate earned but unused vacation,
compensatory time, and sick pay benefits. Employees are reimbursed upon termination for
accumulated vacation and only non-exempt employees are reimbursed for compensatory time.
The liabilities for these amounts are accrued as they are incurred in the government-wide and
proprietary fund financial statements. Employees are not reimbursed upon termination for
accumulated sick leave.
10. Long-term Debt
In the government-wide financial statements, and proprietary funds in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement
of net position. Bond premiums and discounts are deferred and amortized over the life of the
bonds. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental funds recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is
reported as other financing sources. Premiums received on debt issuances are reported as
other financing sources while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds, are reported as
debt service expenditures.
36
11. Pensions
For purposes of measuring the net pension liability, pension related deferred outflows and inflows
of resources, and pension expense, City specific information about its fiduciary net position in the
Texas Municipal Retirement System (TMRS) and additions to/deductions from TMRS’s fiduciary
net position have been determined on the same basis as they are reported by TMRS. For this
purpose, plan contributions are recognized in the period that compensation is reported for the
employee, which is when contributions are legally due. Benefit payments and refunds are
recognized when due and payable in accordance with the benefit terms. Investments are reported
at fair value.
12. Other Postemployment Benefits (OPEB)
The City provides eligible employees with certain postemployment health and life insurance
benefits that meet the criteria of a defined benefit OPEB plan under Governmental Accounting
Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. The City has placed assets in trust to pay the
obligations of the plan with the Public Agencies Retirement Services (PARS). Because plan
assets are pooled by PARS with those of other plans for investment, the City’s plan meets the
criteria of an agent multiple-employer plan under GASB Statement No. 75.
The City has not established a formal funding policy and there is no actuarially determined
contribution. Therefore, for purposes of measuring the net OPEB liability, OPEB related
deferred outflows and inflows of resources, and OPEB expense, benefit payments and refunds
are recognized when due and payable in accordance with the benefit terms. Contributions are
not required but are measured as payments by the City for benefits due and payable that are
not reimbursed by plan assets. Information regarding the City’s net OPEB liability is obtained
from a report prepared by a consulting actuary, Gabriel Roeder Smith & Company, in
compliance with GASB Statement No. 75.
13. Fund Balance Classification
The governmental fund financial statements present fund balances based on classifications
that comprise a hierarchy that is based primarily on the extent to which the City is bound to
honor constraints on the specific purposes for which amounts in the respective governmental
funds can be spent. The classifications used in the governmental fund financial statements are
as follows:
• Nonspendable: This classification includes amounts that cannot be spent
because they are either (a) not in spendable form or (b) are legally or
contractually required to be maintained intact. Nonspendable items are not
expected to be converted to cash or are not expected to be converted to cash
within the next year.
• Restricted: This classification includes amounts for which constraints have been
placed on the use of the resources either (a) externally imposed by creditors,
grantors, contributors, or laws or regulations of other governments, or (b)
imposed by law through constitutional provisions or enabling legislation.
• Committed: This classification includes amounts that can be used only for
specific purposes pursuant to constraints imposed by ordinance of the City
Council. These amounts cannot be used for any other purpose unless the City
Council removes or changes the specified use by taking the same type of action
that was employed when the funds were initially committed. This classification
also includes contractual obligations to the extent that existing resources have
been specifically committed for use in satisfying those contractual requirements.
37
• Assigned: Amounts in the assigned fund balance classification are intended to be
used by the City for specific purposes but do not meet the criteria to be classified
as committed. The City Council has, by resolution, authorized the City Manager
to assign fund balance. The City Council may also assign fund balance as it does
when appropriating fund balance to cover the gap between estimated revenue
and appropriations in the subsequent year’s budget. Unlike commitments,
assignments generally only exist temporarily. In other words, an additional action
does not normally have to be taken for the removal of an assignment.
• Unassigned: This classification includes the residual fund balance for the
General Fund. The unassigned classification also includes negative residual fund
balance of any other governmental fund that cannot be eliminated by offsetting of
assigned fund balance amounts.
14. Fund balance flow assumptions
When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balance is available, the City considers restricted funds to have been spent first. When an
expenditure is incurred for which committed, assigned, or unassigned fund balances are
available, the City considers amounts to have been spent first out of committed funds, then
assigned funds, and finally unassigned funds.
15. Net position flow assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g.,
restricted bond or grant proceeds) and unrestricted resources. To calculate the amounts to
report as restricted net position and unrestricted net position in the government -wide and
proprietary fund financial statements, a flow assumptio n must be made about the order in which
the resources are considered to be applied. It is the City’s policy to consider restricted net
position to have been depleted before unrestricted net position is applied.
16. Future financial reporting requirements
The City has reviewed GASB pronouncements that become effective in future years and notes
the following statements are applicable to the City.
Statement No. 84, Fiduciary Activities – This statement establishes criteria for identifying
fiduciary activities of governments and for identifying fiduciary component units and
postemployment benefit arrangements that are fiduciary activities. This statement will become
effective for the City in fiscal year 2021.
Statement No. 87, Leases – This statement changes the recognition requirements for certain
lease assets and liabilities for leases that are currently classified as operating leases. This
statement will become effective for the City in fiscal year 2022.
Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction
Period – The objectives of this statement are to (1) enhance the relevance and comparability of
information about capital assets and the cost of borrowing for a reporting period and (2) to
simplify accounting for interest cost incurred before the end of a construction period. This
statement will become effective for the City in fiscal year 2022.
Statement No. 90, Majority Equity Interests – an amendment of GASB Statements No. 14 and
No. 61 – The objective of this statement is to improve the consistency and comparability of
reporting a government’s majority equity interest in a legally separate organization and to
improve the relevance of financial statement information for certain component units. This
statement is effective for the City in fiscal year 2021.
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Statement No. 91, Conduit Debt Obligations - The Statement provides a single method of
reporting conduit debt obligation by issuers and eliminate diversity in practice associated with
(1) commitments extended by issuers, (2) arrangements associated with conduit debt
obligations, and (3) related note disclosures. GASB 91 will be implemented by the City in fiscal
year 2023 and the impact has not yet been determined.
Statement No. 92, Omnibus 2020 – The objectives of this Statement are to enhance
comparability in accounting and financial reporting and to improve the consistency of
authoritative literature by addressing practice issues that have been identified during
implementation and application of certain GASB Statements. GASB 92 will be implemented by
the City in fiscal year 2022 and the impact has not yet been determined.
Statement No. 93, Replacement of Interbank Offered Rates – Some governments have entered
into agreements in which variable payments made or received depend on an interbank offered
rate (IBOR)-most notably, the London Interbank Offered Rate (LIBOR). As a result of global
reference rate reform, LIBOR is expected to cease to exist in its current form at the end of
2021, prompting governments to amend or replace financial instruments for the purpose of
replacing LIBOR with other reference rates, by either changing the reference rate or adding or
changing fallback provisions related to the reference rate. GASB 93 will be implemented by the
City in fiscal year 2022 and the impact has not yet been determined.
Statement No. 94, Public-Private and Public-Private Partnerships and Availability Payment
Arrangements – The primary objective of this Statement is to improve financial reporting by
addressing issues related to public-private and public-public partnership arrangements (PPPs).
GASB 94 will be implemented by the City in fiscal year 2023 and the impact has not yet been
determined.
Statement No. 96, Subscription-Based Technology Arrangements – this Statement provides
guidance on the accounting and financial reporting for subscription -based information
technology arrangements (SBITAs) for government end users (governments). To the extent
relevant, the standards for SBITAs are based on the standards established in Statement No.
87, Leases, as amended. GASB 96 will be implemented by the City in fiscal year 2023 and the
impact has not yet been determined.
Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting
for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of
GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32. – The
primary objectives of this Statement are to (1) increase consistency and comparability related to
the reporting of fiduciary component units in circumstances in which a potential component unit
does not have a governing board and the primary government performs the duties that a
governing board typically would perform; (2) mitigate costs associated with the reporting of
certain defined contribution pension plans, defined contribution other postemployment benefit
(OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other
employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and
(3) enhance the relevance, consistency, and comparability of the accounting and financial
reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section
457 plans) that meet the definition of a pension plan and for benefits provided through those
plans. GASB 97 will be implemented by the City in fiscal year 2022 and the impact has not yet
been determined.
II. DEFICIT FUND EQUITY
The Crime District Fund (major special revenue fund) had a deficit fund balance at September 30, 2020,
of $2,824,924. This deficit is primarily the result of declines in sales tax that have occurred with the
economic downturn related to COVID 19. This deficit will be eliminated as resources are obtained (e.g.,
from revenues or transfers in from other funds).
The Lake Park Fund (major special revenue fund) had a deficit fund balance of $4,496,443 as of
September 30, 2020. This deficit is primarily the result of flooding events that have occurred at Grapevine
Lake over the last few years. This deficit will be eliminated as resources are obtained (e.g., from
revenues or transfers in from other funds).
39
The Grant Fund (nonmajor capital projects fund) had a deficit fund balance of $133,041 at fiscal year-end.
This deficit is caused by the timing of payments of intergovernmental receivables (not received within 60
days) and will be resolved in the subsequent year as payments are received.
The Street Maintenance and Capital Replacement Fund (nonmajor capital projects fund) had a deficit
fund balance at September 30, 2020, of $329,841. This deficit is the result of the City performing
additional maintenance during COVID shutdowns in an effort to minimize impacts to citizens. This deficit
will be eliminated through additional transfers from other funds.
The Lake Enterprise Fund (golf course) had a deficit net position of $2,172,008 at September 30, 2020.
Flooding at Grapevine Lake, long-term road closures, and participation in the City’s pension and OPEB
plans have all had significant impacts on the unrestricted net position of the Lake Enterprise Fund.
Completion of a new clubhouse in fiscal year 2021 is expected to increase operations of gol f course. The
deficit will be eliminated as revenues increase or from transfers from other funds.
III. CASH AND INVESTMENTS
As of September 30, 2020, the City had the following cash and investments:
Weighted
Percent Average
of Total Maturity
9/30/2020 Portfolio (Days)
Primary government
Cash and cash equivalents:
Cash deposits - City 9,800,151$
Cash deposits - agency funds 182,431
Certificates of Deposit 3,973,771 3.26%146
Total cash and cash equivalents 13,956,353
Investment pools:
TexPool 45,427 0.04%38
TexPool Prime 5,804,583 4.76%49
LOGIC 116,040,325 95.20%52
Total investments 121,890,335
Total cash and investments of
the primary government 135,846,688$
Portfolio weighted average maturity (days)55
Discretely Presented Component Unit
Cash deposits 374,851$
Total cash and investments
of the reporting entity 136,221,539$
Investment pools are not categorized as to investment risk since specific securities relating to the City
cannot be identified. Under the TexPool Participation Agreement, administrative and investment services
to TexPool and TexPool Prime are provided by Federated Investors, Inc. through an agreement with the
State of Texas Comptroller of Public Accountants. The State Comptroller is the sole officer, director, and
shareholder of the Texas Treasury Safekeeping Trust Company authorized to ope rate TexPool and
TexPool Prime.
Under the LOGIC Participation Agreement, administrative and investment services to LOGIC are provided
by Hilltop Securities, Inc. and JP Morgan Asset Management, Inc. as co-administrators. The
administrators settle all trades for LOGIC and secure and value its assets every day . The fair value of the
City’s position in these pools is the same as the value of the pool shares. As of September 30, 2020, the
City’s investments in LOGIC, TexPool and TexPool Prime were all rated AAAm by Standard & Poor’s.
TexPool, TexPool Prime and LOGIC each have a redemption notice period of one day and may redeem
daily. The investment pools’ authority may only impose restrictions on redemptions in the event of a
general suspension of trading on major securities markets, general banking moratorium or na tional state
of emergency that affects the pool’s liquidity.
40
Interest Rate Risk. In accordance with its investment policy, the City minimizes the risk that the interest
earnings and the market value of investments in the portfolio will fall due to changes in general interest
rates, by:
a. Structuring the investment portfolio so that investments mature to meet cash
requirements for ongoing operations, thereby avoiding the need to liquidate
investments prior to maturity.
b. Investing operating funds primarily in certificates of deposit, shorter-term securities,
money market mutual funds, or local government investment pools functioning as
money market mutual funds.
c. Diversifying maturities and staggering purchase dates to minimize the impact of
market movements over time.
Credit Risk. In accordance with its investment policy, the City minimizes credit risk, the risk of loss due to
the failure of the issuer or backer of the investment by:
a. Limiting investments to the safest types of investments.
b. Pre-qualifying the financial institutions and broker/dealers with which the City will do
business.
c. Diversifying the investment portfolio so that potential losses on individual issuers will
be minimized.
Concentration of Credit Risk. The City’s investment policy allows up to 100% to be invested in U. S.
Treasury Bills/Notes/Bonds, and U. S. Agencies and Instrumentalities.
Custodial Credit Risk. State statutes require that all City deposits in financial institutions be fully
collateralized by U. S. Government obligations or obligations of the State of Texas or its agencies. The
City’s deposits were fully collateralized by government securities or had a letter of credit issued by the
Federal Home Loan Bank as required by State statutes at September 30, 2020.
IV. RECEIVABLES
Receivables as of year-end for the City’s individual major funds and nonmajor funds in the aggregate,
including the applicable allowances for uncollectible accounts, are as follows:
Less
Accrued Gross Allowance for
Interest Taxes Accounts Notes Receivables Uncollectibles Total
General 224$ 5,642,571$ 3,400,741$ -$ 9,043,536$ 3,107,189)$( 5,936,347$
Hotel Occupancy 1,203 721,632 68,662 - 791,497 14,988)( 776,509
Crime District - 1,891,535 6,346 - 1,897,881 - 1,897,881
Lake Parks - - 79 - 79 - 79
4B - Economic Development 18 604,576 35,768 - 640,362 - 640,362
4B - Transit - 1,389,700 - - 1,389,700 - 1,389,700
Debt Service 15 1,387,301 10 - 1,387,326 1,178,052)( 209,274
TIF #1 Capital Projects 15 - - - 15 - 15
General Facilities and Equipment 79,367 - 1,900 3,858,000 3,939,267 - 3,939,267
Nonmajor governmental funds 57 - 2,085,075 - 2,085,132 - 2,085,132
Water and Sewer 34 - 3,397,109 - 3,397,143 140,136)( 3,257,007
Lake Enterprise - - 31,520 - 31,520 - 31,520
Total 80,933$ 11,637,315$ 9,027,210$ 3,858,000$ 24,603,458$ 4,440,365)$( 20,163,093$
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V. CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2020, was as follows:
Primary Government
Beginning Transfers Transfers and Ending
Balance and Additions Retirements Balance
Governmental activities:
Capital assets, not being depreciated:
Land 35,136,147$ 469,924$ 1,109,271)$( 34,496,800$
Right of way 78,561,656 373,333 - 78,934,989
Construction in progress 71,385,628 58,288,220 16,797,587)( 112,876,261
Total assets not being depreciated 185,083,431 59,131,477 17,906,858)( 226,308,050
Capital assets, being depreciated:
Buildings 124,834,611 144,525 5,980)( 124,973,156
Improvement other than buildings 45,829,960 15,079,446 270,429)( 60,638,977
Machinery and equipment 42,852,189 1,767,693 999,845)( 43,620,037
Computer software - 133,207 - 133,207
Infrastructure 136,852,139 3,569,817 - 140,421,956
Total capital assets being depreciated 350,368,899 20,694,688 1,276,254)( 369,787,333
Less accumulated depreciation:
Buildings 30,621,940)( 3,279,676)( 5,980 33,895,636)(
Improvement other than buildings 19,905,933)( 2,280,383)( 86,315 22,100,001)(
Machinery and equipment 26,626,106)( 3,236,105)( 961,448 28,900,763)(
Computer software - 39,332)( - 39,332)(
Infrastructure 80,491,630)( 4,766,499)( - 85,258,129)(
Total accumulated depreciation 157,645,609)( 13,601,995)( 1,053,743 170,193,861)(
Total capital assets being
depreciated, net 192,723,290 7,092,693 222,511)( 199,593,472
Governmental activities capital
assets, net 377,806,721$ 66,224,170$ 18,129,369)$( 425,901,522$
Beginning Transfers Transfers and Ending
Balance and Additions Retirements Balance
Business-type activities:
Capital assets, not being depreciated:
Land 593,970$ -$ -$ 593,970$
Easements 48,705,515 3,215,273 - 51,920,788
Construction in progress 5,431,218 2,070,254 4,999,686)( 2,501,786
Total assets not being depreciated 54,730,703 5,285,527 4,999,686)( 55,016,544
Capital assets, being depreciated:
Buildings 2,555,238 35,950 - 2,591,188
Improvement other than buildings 8,416,221 206,044 - 8,622,265
Machinery and equipment 5,241,309 108,096 - 5,349,405
Water storage rights 683,547 - - 683,547
Computer software - 70,102 - 70,102
Infrastructure 128,748,542 5,292,658 - 134,041,200
Total capital assets being depreciated 145,644,857 5,712,850 - 151,357,707
Less accumulated depreciation:
Buildings 1,893,315)( 43,477)( - 1,936,792)(
Improvement other than buildings 7,252,368)( 382,905)( - 7,635,273)(
Machinery and equipment 3,237,650)( 400,216)( - 3,637,866)(
Water storage rights 656,486)( 17,089)( 673,575)(
Computer software - 27)( - 27)(
Infrastructure 51,734,931)( 2,882,790)( - 54,617,721)(
Total accumulated depreciation 64,774,750)( 3,726,504)( - 68,501,254)(
Total capital assets being
depreciated, net 80,870,107 1,986,346 - 82,856,453
Business-type activities capital
assets, net 135,600,810$ 7,271,873$ 4,999,686)$( 137,872,997$
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Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government 1,511,032$
Public safety 2,169,464
Public works 5,387,798
Culture and recreation 3,782,942
Tourism 750,759
Total depreciation expense - governmental activities 13,601,995$
Business-type activities:
Water and sewer 3,237,669$
Lake Enterprise 488,835
Total depreciation expense - business-type activities 3,726,504$
Beginning Transfers Transfers and Ending
Balance and Additions Retirements Balance
Discretely Presented Component Unit:
Capital assets, not being depreciated:
Land 450,067$ -$ -$ 450,067$
Total assets not being depreciated 450,067 - - 450,067
Capital assets, being depreciated:
Building 1,031,174 - - 1,031,174
Improvements other than building 945,651 - - 945,651
Vehicles and equipment 31,275 - - 31,275
Total capital assets being depreciated 2,008,100 - - 2,008,100
Less accumulated depreciation:
Building 344,406)( 26,492)( - 370,898)(
Improvements other than building 940,425)( 552)( - 940,977)(
Vehicles and equipment 31,275)( - - 31,275)(
Total accumulated depreciation 1,316,106)( 27,044)( - 1,343,150)(
Total capital assets being
depreciated, net 691,994 27,044)( - 664,950
Discretely presented component unit
capital assets, net 1,142,061$ 27,044)$( -$ 1,115,017$
Construction Commitments
The City has active construction commitments as of September 30, 2020, totaling $58,435,811. This
includes building projects, street construction and improvements of existing streets, and repair and
maintenance of existing water and sewer systems.
Project Commitment
Streets and drainage projects 4,875,790$
Water and wastewater projects 1,716,870
Fiber optic cable project 1,793,850
Animal Shelter 992,182
Golf Clubhouse 3,313,756
Fire stations 3,726,680
Grapevine Main 13,388,659
Parks projects 92,877
Total 29,900,664$
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The commitments for buildings, streets and drainage construction will be funded from unexpended
general obligation and certificates of obligation bond proceeds. Water and wastewater projects will be
funded from unexpended certificates of obligation and revenue bond proceeds and operations.
VI. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The composition of interfund balances as of September 30, 2020, is as follows:
Due to/from Other Funds
Receivable Fund Payable Fund Amount
General Fund 4B Transit 109,981$
Crime District Fund 3,861,747
Lake Parks 3,839,891
Lake Enterprise Fund 288,286
Total General Fund 8,099,905
Hotel Occupancy Tax Grant Fund 135,760
Water and Sewer Lake Enterprise Fund 201,944
Capital Projects - Street Maintenance 194,456
396,400
Total 8,632,065$
Interfund balances for all the funds are created by short-term deficiencies in cash position in the individual
fund. It is anticipated that the balances will be repaid in one year or less. Similar transaction s such as this
also exist between the primary government and the City’s discretely presented component unit. The
balances due to and due from component unit and primary government at September 30, 2020 consisted
of the following:
Receivable Payable Amount
Component unit - Heritage Foundation Primary Government -
Hotel Occupancy Tax Fund 9,518$
Interfund Transfers
A summary of interfund transfers by fund type is as follows:
Transfers in Transfers out Amount Total
General Fund Hotel Occupancy Tax Fund 1,455,526$
4-B Economic Development 306,000
Lake Parks 689,893
Nonmajor governmental funds 3,388,460
Water and Sewer Fund 1,866,000
Lake Enterprise Fund 111,463
Total General Fund 7,817,342$
Hotel Occupancy Tax Fund 4B-Transit Fund 336,524
Crime District Fund General Fund 3,406,824
Debt Service Fund Hotel Occupancy Tax Fund 985,670
4-B Economic Development 1,401,394
Total Debt Service 2,387,064
General Facilities and Equipment Water and Sewer Fund 3,892,208
Nonmajor governmental General Fund 4,109,004
Water and Sewer Fund 19,149
Nonmajor governmental 94,700
Total nonmajor governmental 4,222,853
Total 22,062,815$
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Interfund transfers are primarily made by the City for the following reasons:
• Budgeted transfers to the General Fund from other funds for operating and administrative
allocations.
• Operating transfer from the 4B-Transit Fund to the Hotel Occupancy Tax Fund for visitor shuttle
services.
• Transfers to the Debt Service Fund to pay for self-supporting debt service expenditures.
• Transfers to capital projects funds to fund current and future capital projects within the City.
• Transfers to the Crime District Fund from the General Fund is a budgeted transfer to cover
additional costs that are in excess of sales tax collections.
VII. DEFERRED INFLOWS OF RESOURCES
At September 30, 2020, deferred inflows of resources reported in the governmental funds for unavailable
revenues are as follows:
General
Debt Facilities and Nonmajor
General Service Equipment Governmental Total
Property taxes 66,006$ 70,238$ -$ -$ 136,244$
Property tax penalties
and interest 115,594 108,183 - - 223,777
Court fines and fees 153,221 - - - 153,221
Ambulance billing 51,975 - - - 51,975
Franchise fees 66,952 - - 13,413 80,365
Intergovernmental 1,006 - 4,519,301 679,191 5,199,498
Other 54,839 - - 66,077 120,916
Total 509,593$ 178,421$ 4,519,301$ 758,681$ 5,965,996$
VIII. LEASES
Operating Leases
Lake Parks
The City entered into a 25-year lease agreement with the United States Corps of Engineers to operate
and maintain approximately 770 acres of property at Lake Grapevine. The City is required to pay the cost
to maintain and operate the property with revenues generated from park operations. The term of the
operating lease is from October 2004 through September 2029. The agreement covers the park areas of
Meadowmere Park, Oak Grove Park and Silver Lake Park (“Vineyards”).
The City entered into another 25-year lease agreement with the United State Corps of Engineers to
operate and maintain an additional 44.5 acres at Lake Grapevine referred to as Rockledge Park. The
term of this operating lease is from March 2009 through March 2034.
Gaylord Texan Resort and Convention Center
The City leased property from the United States Corps of Engineers and subsequently entered into a
sublease agreement with the Gaylord Texan Resort and Convention Center (Gaylord) on March 18, 1994,
for a portion of the leased property. The contract is for 49 years and rent payment is $1 per year. The
project opened on April 4, 2004 with 1,511 room convention hotel and over 400,000 square feet of
convention, meeting, exhibit and related amenities and support facilities. In subsequen t years, The City
and Gaylord entered into various addendums pertaining to the United States Corps of Engineers leased
property. Gaylord completed and opened its $120 million Vineyard Tower expansion in summer of 2018.
45
This project increased the number of rooms by 303 and provided 86,000 square feet of additional meeting
space. This ranks Gaylord as the nation’s second-largest non-gaming convention hotel when measured
by total self-contained exhibit and meeting space.
Cowboys Golf Course
The City entered into a 50-year sublease agreement with the Cowboys Golf Course in 1999. The
Cowboys Golf course management company’s lease fee is 3% of Cowboys’ gross revenues from
operations.
IX. LONG-TERM LIABILITIES
General Obligation Bonds
The City issues general obligation bonds to provide funds for the acquisition and construction of major
capital facilities. General obligation bonds have been issued for both governmental and business -type
activities.
General obligation bonds are direct obligations and pledge the full faith and credit of the City. These
bonds generally are issued as 20-year serial bonds with principal maturing each year.
A summary of the terms of general obligation bonds outstanding and their corresponding allocations to
the governmental and business-type activities at September 30, 2020, follows:
Original Interest Rates
General Obligation Bonds Sale Date Borrowing to Maturity Final Maturity Outstanding
Governmental activities:
2010 GO Refunding Bonds 07/08/2010 6,560,000$ 2.0% - 4.0%2022 1,280,000$
2012 GO Refunding Bonds 12/04/2012 7,665,000 2.0% - 2.1%2027 1,825,000
2013 GO 06/27/2013 65,805,000 2.0% - 5.0%2033 51,175,000
2015 GO Refunding Bonds 01/23/2015 12,125,000 2.0% - 5.0%2026 2,600,000
2017 GO Refunding Bonds 01/17/2017 1,365,000 2.0% - 3.0%2027 990,000
2019 GO Refunding Bonds 07/09/2019 28,860,000 3.0% - 4.0%2039 26,620,000
84,490,000
Business-type activities:
2010 GO Refunding Bonds 07/8/2010 3,915,000$ 2.0% - 4.0%2022 455,000$
Total general obligation bonds outstanding 84,945,000$
Annual debt service requirements for general obligation bonds are as follows:
Year Ending
September 30,Principal Interest Principal Interest
2021 6,935,000$ 3,265,982$ 455,000$ 9,100$
2022 5,580,000 2,990,089 - -
2023 5,315,000 2,753,370 - -
2024 5,235,000 2,536,020 - -
2025 5,485,000 2,328,245 - -
2026-2030 28,905,000 8,281,775 - -
2031-2035 21,240,000 2,483,510 - -
2036-2040 5,795,000 353,925 - -
Total 84,490,000$ 24,992,916$ 455,000$ 9,100$
Governmental Activities Business-type Activities
46
Certificates of Obligation
The City also issued certificates of obligation to finance the acquisition and construction of capital assets
including certain capital improvement projects, municipal facilities, and machinery and equipment.
The City had the following certificates of obligation outstanding as of September 30, 2020:
Original Interest Rates
Certificates of Obligation Sale Date Borrowing to Maturity Final Maturity Outstanding
Governmental activities:
2015 CO 01/23/2015 2,000,000$ 2.0% - 4.5%2035 1,145,000$
2017 CO 01/17/2017 9,535,000 2.0% - 5.0%2037 8,180,000
2018 CO 04/17/2018 32,310,000 3.0% - 5.0%2038 31,355,000
40,680,000
Business-type activities:
2015 CO 01/23/2015 9,720,000$ 2.0% - 4.5%2035 7,800,000
Total certificates of obligation outstanding 48,480,000$ Annual debt service requirements to maturity for certificates of obligation of the primary government are
as follows:
Year Ending
September 30,Principal Interest Principal Interest
2021 1,130,000$ 1,529,162$ 405,000$ 250,519$
2022 1,915,000 1,468,906 425,000 241,688
2023 1,755,000 1,386,887 430,000 231,531
2024 1,835,000 1,300,800 440,000 219,556
2025 1,935,000 1,208,350 460,000 206,056
2026-2030 11,155,000 4,540,856 2,585,000 752,882
2031-2035 12,895,000 2,432,759 3,055,000 242,510
2036-2040 8,060,000 401,116 - -
Total 40,680,000$ 14,268,836$ 7,800,000$ 2,144,742$
Governmental Activities Business-type Activities
Contractual Obligations
The City has issued contractual obligations to finance the acquisition of certain capital equipment. These
obligations are issued pursuant to the Constitution of the State of Texas, including particularly Subchapter
A of Chapter 271, Texas Local Government Code (the Public Property Finance Act), and constitute direct
obligations of the City of Grapevine, Texas, payable from a continuing ad valorem tax levied on all ta xable
property within the City.
The City had the following Public Property Finance (“PPF”) contractual obligations outstanding as of
September 30, 2020:
Original Interest Rates
Contractual Obligations Sale Date Borrowing to Maturity Final Maturity Outstanding
Governmental activities:
2012 PPF Contractual Obligation 12/04/2012 1,225,000$ 1.2%2027 655,000$
2015 PPF Contractual Obligation 01/01/2015 3,070,000 2.0% - 4.0%2026 1,255,000
2018 PPF Contractual Obligation
(Private Placement)03/06/2018 2,500,000 3.9%2028 2,073,240
Total contractual obligations outstanding 3,983,240$
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Contractual obligation debt service requirements to maturity are as follows:
Year Ending
September 30,Principal Interest
2021 565,000$ 48,588$
2022 585,000 32,575
2023 155,000 19,688
2024 165,000 14,906
2025 165,000 9,969
2026-2030 275,000 6,000
Total 1,910,000$ 131,726$
Governmental Activities
Private placement contractual obligation debt service requirements to maturity are as follows:
Year Ending
September 30,Principal Interest
2021 225,405$ 81,893$
2022 234,309 72,989
2023 243,564 63,734
2024 253,185 54,113
2025 263,186 44,113
2026-2030 853,591 68,304
Total 2,073,240$ 385,146$
Governmental Activities
Private Placement
Revenue Bonds
On May 15, 2018, the City issued Sales Tax Revenue Refunding Bonds, Series 2018, to refund the
existing Sales Tax Revenue Bonds, Series 2014. The Sales Tax Revenue Refunding Bonds, Series
2018, were issued by the Grapevine 4B Economic Development Corporati on, a blended component unit
of the City, pursuant to Chapters 501, 502, and 505, Texas Local Government Code. These bonds are
special obligations of the City, payable from a secured lien on and pledge of certain pledged revenues
which include the proceeds of ¼ of the ½ cent sales and use tax levied within the City for the benefit of
the Grapevine 4B Economic Development Corporation.
At September 30, 2020, the remaining balances for principal and interest on the debt are $15,260,000
and $4,321,109, respectively. Annual debt service requirements through February 15, 2034 do not
exceed $1,500,000 per year. Sales tax revenue collections in the 4B -Economic Development Fund were
$3,872,769.
A reserve fund is required to be maintained as security for the paymen t of the sales tax revenue refunding
bonds. The reserve fund is required to be funded in an amount equal to the maximum annual principal
and interest required for the bonds. The reserve is currently funded at $1,402,400, which meets the
reserve requirements.
On June 6, 2000, the City issued Combination Tax and Tax Increment Revenue Certificates of Obligation,
Series 2000. These bonds were subsequently refunded with Combination Tax and Tax Increment
Reinvestment Zone Revenue Refunding Bonds, Ser ies 2005A, and with Combination Tax and Tax
Increment Reinvestment Zone Revenue Refunding Bonds, Series 2015A. The Combination Tax and Tax
Increment Reinvestment Zone #2 Revenue Refunding Bonds, Series 2015A, were issued pursuant to the
Constitution and the general laws of the State of Texas, including particularly, Chapter 1207, Texas
Government Code and Section 9.26 of the City’s Home Rule Charter, and are direct obligations of the
City, payable from a combination of the levy and collection of a continuin g ad valorem tax levied on all
taxable property within the City and a subordinate lien on an pledge of the tax increments deposited in the
tax increment fund established for TIF #2.
48
At September 30, 2020, the remaining principal and interest on the bonds was $12,185,000 and
$1,622,950, respectively. Principal and interest payments for the fiscal year were $1,720,000 and
$576,600. Tax increment revenues for TIF #2 for the current year were $6,296,153. The outstanding
revenue bonds have a final maturity of August 15, 2026.
A summary of the terms of the revenue bonds outstanding for the governmental activities as of
September 30, 2020, is as follows:
Original Interest Rates
Revenue Bonds Sale Date Borrowing to Maturity Final Maturity Outstanding
Governmental activities:
2015A TIF#2 Revenue Refunding Bonds 01/23/2015 20,565,000$ 2.0% - 5.0%2026 12,185,000$
2018 Sales Tax Revenue Refunding 04/17/2018 169,300,000 3.0% - 4.0%2034 15,260,000
Total revenue bonds outstanding 27,445,000$ Annual debt service requirements for the revenue bonds are as follows:
Year Ending
September 30,Principal Interest
2021 2,685,000$ 1,016,119$
2022 2,795,000 898,994
2023 2,920,000 776,794
2024 3,050,000 649,019
2025 3,150,000 556,453
2026-2030 7,675,000 1,623,081
2031-2035 5,170,000 423,600
Total 27,445,000$ 5,944,060$
Governmental Activities
The following is a summary of long-term liability transactions of the City for the year ended September 30,
2020:
Balance Balance Due Within
9/30/2019 Increases Reductions 9/30/2020 One Year
Governmental activities:
General obligation bonds 92,055,000$ -$ 7,565,000)$( 84,490,000$ 6,935,000$
Certificates of obligation 41,927,553 - 1,247,553)( 40,680,000 1,130,000
Contractual obligations 2,465,000 - 555,000)( 1,910,000 565,000
Contractual obligations-private placement 2,290,080 - 216,840)( 2,073,240 225,405
Revenue bonds 30,015,000 - 2,570,000)( 27,445,000 2,685,000
Tax notes 605,000 - 605,000)( - -
Premium on bond issues 7,844,073 - 825,713)( 7,018,360 -
Total bonds and notes payable 177,201,706 - 13,585,106)( 163,616,600 11,540,405
Net OPEB liability 57,075,017 13,014,868 2,505,912)( 67,583,973 -
Net pension liability 50,596,069 26,435,710 43,556,881)( 33,474,898 -
Compensated absences 4,201,857 2,511,393 2,158,694)( 4,554,556 1,138,639
Total governmental activities
long-term liabilities 289,074,649$ 41,961,971$ 61,806,593)$( 269,230,027$ 12,679,044$
The liability for compensated absences and the pension and OPEB-related liabilities are paid from the
General Fund, Crime District Fund, and enterprise funds base d on the assignment of an employee at
termination.
49
Balance Balance Due Within
9/30/2019 Increases Reductions 9/30/2020 One Year
Business-type activities:
Water and sewer obligations:
General obligation bonds 895,000$ -$ 440,000)$( 455,000$ 455,000$
Certificates of obligation 8,200,000 - 400,000)( 7,800,000 405,000
Premium on bond issues 406,526 - 54,058)( 352,468 -
Total water and sewer bonds payable 9,501,526 - 894,058)( 8,607,468 860,000
Net OPEB liability 8,446,180 1,367,622 1,791,207)( 8,022,595 -
Net pension liability 4,742,559 2,470,930 4,083,058)( 3,130,431 -
Compensated absences 251,831 174,982 147,136)( 279,677 69,919
Total business-type activities
long-term liabilities 22,942,096$ 4,013,534$ 6,915,459)$( 20,040,171$ 929,919$
X.DEFINED BENEFIT PENSION PLAN
Plan Description. The City participates as one of 888 plans in the nontraditional, joint contributory, hybrid
defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is
an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G,
Title 8, Texas Government Code (the TMRS Act) as an agency multiple-employer retirement system for
municipal employees in the State of Texas. The TMRS Act places the general administration and
management of the System with a six-member Board of Trustees. Although the Governor, with the advice
and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas.
TMRS’s defined benefit pension plan is a tax-qualified plan under Sections 401(a) of the Internal
Revenue Code. TMRS issues a publicly available comprehensive annual financial report that can be
obtained at www.tmrs.com.
All eligible employees of the City are required to participate in TMRS.
Benefits Provided. TMRS provides retirement and disability benefits. Benefit provisions are adopted by the
governing body of the City, within the options available in the state statutes governing TMRS.
At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the
city-financed monetary credits with interest were used to purchase an annuity. Members may choose to
receive their retirement benefit in one of seven actuarially equivalent payments options. Members may also
choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24,
or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest.
Starting in 2005, the City granted an annually repeating (automatic) basis monetary credit referred to as an
updated service credit (USC) which is a theoretical amount which considers salary increases or plan
improvements. If at any time during their career an employee earns a USC, this amount remains in their
account earning interest until retirement. At retirement, the benefit is calculated as if the sum of the
employee’s accumulated contributions with interest and the employer match plus employer-financed
monetary credits, such as USC, with interest were used to purchase an annuity. Additionally, initiated in
1998, the City provided on an annually repeating (automatic) basis cost of living adjustments (COLA) for
retirees equal to a percentage of the change in the consumer price index (CPI).
50
The plan provisions are adopted by the governing body of the City, within the options available in the state
statutes governing TMRS. Plan provisions for the City were as follows:
Employee deposit rate 7%
Matching ratio (City to employee)2 to 1
Years required for vesting 5
Service retirement eligibility 20 years to any age, or
5 years at age 60 and above
Updated service credit 100% repeating, transfers
Annuity increase to retirees 70% of CPI, repeating
Employees covered by benefit terms
At the December 31, 2019, valuation and measurement date, the following employees were covered by
the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 420
Inactive employees entitled to but not yet receiving benefits 282
Active employees 590
Total 1,292
Contributions. The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee
gross earnings, and the City matching percentages are with 100%, 150%, or 200%, both as adopted by
the governing body of the city. Under the state law governing TMRS, the contributions rate for each city is
determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The
actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by
employees during the year, with an additional amount to finance any unfunded accrued liability.
Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal
year. The contribution rate for the City was 18.53% and 18.58% in calendar years 2020 and 2019,
respectively. The City’s contributions to TMRS for the year ended September 30, 2020, were $8,848,797
and were equal to the required contributions.
Net Pension Liability. The City’s net pension liability (NPL) was measured as of December 31, 2019,
and the total pension liability (TPL) used to calculate the net pension liability was determined by an
actuarial valuation as of that date.
Actuarial assumptions:
The total pension liability in the December 31, 2019 actuarial valuation was determined using the
following actuarial assumptions:
Inflation 2.5% per year
Overall payroll growth 3.50% to 11.5% including inflation
Investment Rate of Return 6.75%
Salary increases were based on a service-related table. Mortality rates for active members, retirees, and
beneficiaries were based on the gender distinct RP2000 Combined Health y Mortality Tables with Blue
Collar Adjustment with male rates multiplied by 109% and female rates multiplied by 103%. The rates are
projected on a fully generational basis by scale BB to account for future mortality improvements. For
disabled annuitants, the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar
Adjustment are used with males’ rates multiplied by 109% and female rates multiplied by 103% with a 3-
year set-forward for both males and females. In addition, a 3% minimum morta lity rate is applied to reflect
the impairment for younger members who become disabled. The rates are projected on a fully
generational basis by scale BB to account for future mortality improvements subject to the 3% floor.
51
The actuarial assumptions were developed primarily from the actuarial investigation of the experience of
TMRS over the four-year period from December 31, 2014 to December 31, 2018. They were adopted in
2019 and first used in the December 31, 201 9 actuarial valuation. The post-retirement mortality
assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality
Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. In
conjunction with these changes first used in the December 31, 2013 valuation, the System adopted the
Entry Age Normal actuarial cost method and a one-time change to the amortization policy. Plan assets
are managed on a total return basis with an emphasis on both capital appre ciation as well as the
production of income, to satisfy the short-term and long-term funding needs of TMRS.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best estimate ranges of exp ected future real rates of return (expected returns, net of
pension plan investment expenses and inflation) are developed for each major asset class. These ranges
are combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage and by adding expected inflation. In determining their
best estimate of a recommended investment return assumption under the various alternative asset
allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an
adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time
(aggressive). The target allocation and best estimates of arithmetic real rates return for e ach major asset
class in fiscal year 2020 are summarized in the following table:
Long-Term Expected
Target Real Rate of Return
Asset Class Allocation (Arithmetic)
Global Equity 30.0%5.30%
Core Fixed Income 10.0%1.25%
Non-Core Fixed Income 20.0%4.14%
Real Return 10.0%3.85%
Real Estate 10.0%4.00%
Absolute Return 10.0%3.48%
Private Equity 10.0%7.75%
Total 100.0%
Discount Rate
The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows
used to determine the discount rate assumed that employee and employer contributions will be made at
the rates specified in the statute. Based on that assumption, the pension plan’s fiduciary net position was
projected to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was applied to
all periods of projected benefit payments to det ermine the total pension liability.
52
Changes in the Net Pension Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a)(b)(a) - (b)
Balance at 12/31/2018 286,476,144$ 231,137,516$ 55,338,628$
Changes for the year:
Service cost 8,579,543 - 8,579,543
Interest 19,238,959 - 19,238,959
Difference between expected and
actual experience 659,154 - 659,154
Changes of assumptions 207,921 - 207,921
Contributions - employer - 8,626,976 8,626,976)(
Contributions - employee - 3,250,584 3,250,584)(
Net investment income - 35,749,292 35,749,292)(
Benefit payments, including refunds
of employee contributions 11,488,595)( 11,488,595)( -
Administrative expense - 201,910)( 201,910
Other changes - 6,066)( 6,066
Net changes 17,196,982 35,930,281 18,733,299)(
Balance at 12/31/2019 303,673,126$ 267,067,797$ 36,605,329$
Increase (Decrease)
The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as
well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 -
percentage-point lower or 1-percentage-point higher than the current rate:
1% Decrease in Current Single Discount 1% Increase in
Discount Rate Rate Assumption Discount Rate
(5.75%)(6.75%)(7.75%)
City's net pension
liability 79,124,576$ 36,605,329$ 1,595,856$
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s Fiduciary Net Position is available in a separately issued
TMRS financial report. The report may be obtained at www.tmrs.com.
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related
to Pensions
For the year ended September 30, 2020, the City recognized pension expense of $8,672,341.
At September 30, 2020, the City reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected
and actual economic experience 515,547$ 1,186,700$
Changes in actuarial assumptions 162,622 -
Difference between projected and
actual investment earnings - 8,148,923
Contributions subsequent to the
measurement date 6,715,558 -
Total 7,393,727$ 9,335,623$
53
$6,715,558 reported as deferred outflows of resources related to pension resulting from contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liab ility for the
year ending September 30, 2021. Other amounts reported as deferred outflows and inflows of resources
related to pensions will be recognized in pension expense as follows:
For the Year Ended
September 30,
2021 2,809,234)$(
2022 2,551,818)(
2023 621,646
2024 3,918,048)(
Total 8,657,454)$(
XI. OTHER POSTEMPLOYMENT BENEFITS
Post-retirement Health Care Benefits
Plan Description.
The City provides certain health care and life insurance benefits through an agent, multiple -employer,
defined benefit OPEB plan, under City ordinance, for all full and part -time employees that meet eligibility
requirements. Eligible individuals include retired employees who have satisfied the requirement as
defined by the Texas Municipal Retirement System and their dependents that were covered prior to
retirement. The requirement as defined by the Texas Municipal Retirement System is any age with 20
years of service or 5 years of service for age 60 and above. City Council members that serve three terms
will be classified as retired employees when they leave office.
Retirees pay premiums for coverage in the OPEB programs. There is not a maximum employer pa id
premium amount (capped benefit). Active employees do not contribute to the retiree health care plan.
Retirees are eligible for benefits immediately upon retirement. If the employee returns to work for an
employer that offers health coverage, they become ineligible for the City’s plan and cannot rejoin the
City’s health plan at a later date.
Benefits Provided
Retirees are eligible for medical, dental, vision, and prescription insurance until they become Medicare
eligible. Retirees are also eligible for a $20,000 life insurance policy. Once Medicare eligible, retirees are
eligible for dental, vision, and life insurance only. At that time, the City medical plan will no longer be
available. The City supplements 70% of the premium to all retirees who either (1) retire after the age of 65
or (2) are covered pre-Medicare in the retiree medical program. Spouses of retirees will receive the City
supplement if they have been on the plan for one year prior to retirement.
If an active employee passes away, the spouse and dependents will become eligible for retiree coverage
if (1) the employee was eligible for retirement as defined by the Texas Municipal Retirement System; and
(2) the employee had dependent coverage at the time of death. Coverage will continue under the plan if
monthly retiree premiums are paid by the specified due date, until dependents are no longer considered
eligible dependents as defined by the plan, until the covered dependent becomes Medicare eligible, or
until a surviving spouse remarries.
For the fiscal year ended September 30, 2020, the City’s contributions to the plan were $2,464,368 which
exceeded benefit payments of $1,964,368.
The number of employees currently covered by the benefit terms is as follows:
Inactive employees or beneficiaries currently receiving benefits 211
Active members 591
Total 802
54
Actuarial Methods and Assumptions
Significant methods and assumptions were as follows:
Actuarial Valuation Date 12/31/2018
Actuarial Cost Method Individual Entry Age Normal Cost Method
Discount Rate 2.95% as of December 31, 2019
Inflation Rate 2.50%
Salary Increases 3.50% to 11.50%, including inflation
Demographic Assumptions Based on the experience study covering the four-year period ending
December 31,2018 as conducted for the Texas Municipal Retirement
System (TMRS)
Mortality For healthy retirees,the gender-distinct 2019 Municipal Retirees of Texas
mortality tables are used.The rates are projected on a fully generational
basis using the ultimate mortality improvement rates in the MP tables to
account for future mortality improvements.
Participation Rates For health care coverage: 85% for retirees who are at least 50 years old at
retirement and 65%for retirees who are younger than 50 years old at
retirement; For life insurance: 85% regardless of age at retirement
Health care cost trend rates Pre-65 Medical:Initial rate of 7.20%declining to an ultimate rate of 4.25%
after 15 years;
Post-65 Medical Subsidy: Increases with inflation;
Dental: 4.00%;
Vision: 3.00%
Note:The Single Discount Rate changed from 3.82%as of December 31,2018 to
2.95%as of December 31,2019.Additionally,the demographic
assumptions were updated to reflect the 2019 TMRS Experience Study and
the health care trend rates were updated to reflect the repeal of the excise
tax on high-cost employer health plans.
Projections of health benefits are based on the plan as understood by the City and include the types of
benefits in force at the valuation date and the pattern of sharing benefit costs between the City and its
employees to that point. Actuarial calculations reflect a long-term perspective and employ methods and
assumptions that are designed to reduce short -term volatility in actuarial accrued liabilities and the
actuarial value of assets.
There is no separately issued audited benefit plan report available for the City’s OPEB plan.
Discount Rate
A single discount rate of 2.95% was used to measure the total OPEB liability. This single discount rate was
based on the municipal bond rates as of the measurement date. The source of the municipal bond rate
was fixed-income municipal bonds with 20 years to maturity that include only federally tax -exempt
municipal bonds as reported in Fidelity Index’s “20-year Municipal GO AA Index” based on the daily rate
closest to but not later than the measurement date.
For the purpose of this valuation, the expected rate of return on OPEB plan investments is 6.75%.
Discount Rate Sensitivity Analysis
The following schedule shows the impact of the net OPEB liability if the discount rate used was 1% le ss
than and 1% greater than the discount rate that was used (2.95%) in measuring the net OPEB liability.
1% Decrease in 1% Increase in
Discount Rate (1.95%)Discount Rate (2.95%)Discount Rate (3.95%)
City's net OPEB liability 87,199,810$ 75,606,568$ 66,103,297$
55
Healthcare Cost Trend Rate Sensitivity Analysis
The following schedule shows the impact of the net OPEB liability if the Healthcare Cost Trend Rate used
was 1% less than and 1% greater than what was used in measuring the Net OPEB liability.
Current Healthcare Cost
1% Decrease Trend Rate Assumption 1% Increase
City's net OPEB liability 64,283,249$ 75,606,568$ 90,028,079$
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources Related to OPEBs
At September 30, 2020, the City reported a liability of $75,606,568 for its net OPEB liability. The net
OPEB liability was determined by an actuarial valuation as of December 31, 2018. For the year ended
September 30, 2020, the City recognized OPEB expense of $6,598,832. There were no changes of
benefit terms that affected measurement of the net OPEB liability during the measurement period.
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a)(b)(a) - (b)
Balance at 12/31/2018 66,998,606$ 1,477,409$ 65,521,197
Changes for the year:
Service cost 3,955,532 - 3,955,532
Interest 2,606,795 - 2,606,795
Difference between expected
and actual experience 528,026)( - 528,026)(
Changes of assumptions 6,316,707 - 6,316,707
Contributions - employer - 1,971,310 1,971,310)(
Net investment income - 304,042 304,042)(
Benefit payments 1,471,310)( 1,471,310)( -
Administrative expense - 9,715)( 9,715
Net changes 10,879,698 794,327 10,085,371
Balance at 12/31/2019 77,878,304$ 2,271,736$ 75,606,568$
Increase (Decrease)
Changes in assumptions and other inputs reflect a change in the discount rate from 3.82% to 2.95%. At
September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected
and actual economic experience 123,189$ 1,225,588$
Changes in actuarial assumptions 8,225,708 6,153,882
Difference between projected and
actual investment earnings - 61,728
Contributions subsequent to the
measurement date 1,606,909 -
Total 9,955,806$ 7,441,198$
$1,606,909 reported as deferred outflows of resources related to OPEB resulting from contributions
subsequent to the measurement date are due to benefit payments the City paid with own assets and will
be recognized as a reduction of the net OPEB liability for the year ending September 30, 2021.
56
Other amounts of the reported as deferred outflows and inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
For the Year Ended
September 30,
2021 143,061$
2022 143,061
2023 148,955
2024 115,530
2025 328,246)(
Thereafter 685,338
Total 907,699$
XII. COMMITMENTS AND CONTINGENCIES
The City is a defendant in several pending lawsuits. City management estimates, based on the advice of
legal counsel, that the potential claims against the City, in excess of insurance coverage, would not
materially affect the basic financial statements of the City.
The City participates in several federal and state grant programs. These programs are subject to program
compliance audits by the grantors or their representatives. Any liability that may arise as the result of
these audits is not believed to be estimable or probable.
XIII. TAX ABATEMENTS
The City enters into economic development agreements designed to promote development and
redevelopment within the City, spur economic improvement, stimulate commercial activity, generate
additional sales tax, and enhance the property tax base and economic vitality of the City. The City’s
economic development agreements are authorized under Chapter 380 of the Texas Local Government
Code, Chapter 311 (Tax Increment Financing Act) and Chapter 312 (Property Redevelopment and Tax
Abatement) of the Texas Tax Code. The economic development agreements are designed to support the
creation of new businesses, the expansion and retention of existing businesses within the City, and the
attraction of companies that offer high impact jobs and share the community’s values. Recipients may be
eligible to receive economic assistance based on the employment, economic or community impact of the
project requesting assistance. Recipients generally commit to building or remodeling real property and
related infrastructure, redeveloping properties, expanding operations, or bringing targeted business to the
City. Agreements generally contain recapture provisions which may require repayment or termination if
recipients do not meet the required provisions of the economic incentives.
The City has the following categories of economic development agreements:
• General Economic Development – The City enters into various agreements under Chapter 380 of the
Texas Local Government Code to stimulate economic development. Agreements may rebate a flat
amount, or a percentage of hotel occupancy taxes or sales taxes received by the City, may result in fee
reductions such as utility charges or building inspection or permit fees, or make lump sum payments to
offset moving expenses, tenant finish-outs, demolition costs, infrastructure reimbursements,
redevelopment costs, or other expenses. For fiscal year 2020, the City rebated $6,090,033 in taxes and
made incentive payments of $186,707 under these agreements.
• Tax Increment Financing – The City has adopted two Tax Increment Financing zones (“TIFs”) under
Chapter 311 of the Texas Tax Code. The City enters into economic development and infrastructure
reimbursement agreements which earmark TIF revenues for payment to developers and represent
obligations over the life of the TIF or until the terms of the agreements have been met. Additionally, the
City enters into general economic development agreements under Chapter 380 of the Texas Local
Government Code which are funded with TIF resources. The City made $1,639,555 in payments for TIF
obligations.
57
XIV. RISK MANAGEMENT
The City purchases a fully insured program for property and casualty insurance coverage through Travelers
Insurance and workers’ compensation coverage through Texas Municipal League. The City is insured at the
following limits:
Policy Limits Deductible
General liability $1,000,000 per occurrence/$2,000,000 aggregate $10,000
Automobile liability $1,000,000 per occurrence $0
Automobile physical damage Actual cash value $1,000
Excess liability $10,000,000 per occurrence/$10,000,000 aggregate $0
Property $2,492,908 varies by peril
Workers' compensation Statutory/employers' liability $1,000,000
Risk Management oversees the City’s self-insured employee health plan and retiree health plans. UMR is the
third-party administrator for the employee and pre-65 retiree health plans. Claims and other plan
administration services are performed by UMR. All participating funds make payments to the General Fund
for their portion of property and casualty and health plan cost.
Financial responsibility in a self-insured funding arrangement is on the City, the risk of losses exceeding an
affordable threshold is transferred to an insurance company through the purchase of stop-loss insurance with
Stealth Partner Group. Stop-loss insurance protects the City from plan claims costs exceeding a specified
deductible during the plan year.
Specific Excess Loss Insurance
The City has specific excess loss insurance to cover specific claims incurred by plan participants. The City
has a $250,000 specific deductible for each medical plan member. The specific benefit period
reimbursement maximum under this coverage is unlimited per covered person.
Aggregate Excess Loss Insurance
The City also has coverage for aggregate claims incurred under the self-insured health plan. Under this
coverage, aggregate claims in excess of an estimate annual aggregate attachment point of $9,505,503 would
be covered up to an aggregate benefit period reimbursement maximum of $1,000,000.
The City establishes the insurance claim liability based on estimates of the ultimate cost of claims reported
but unsettled and of claims incurred but not reported. Any claims incurred and not reported are not believed
to be significant to the City’s financial statements. Activity for the last two years is as follows:
2020 2019
Claims payable, beginning of year 694,451$ 650,081$
Current year claims and changes in estimates 10,190,154 3,966,014
Payments on claims 10,096,533)( 3,921,644)(
Claims payable at end of year 788,072$ 694,451$
XV. WATER STORAGE RIGHTS
Water storage rights of $683,547 (net of accumulated amortization of $673,574) represent rights in the
Federal Reservoir at Lake Grapevine purchased through a long-term contract with the federal
government and are recorded at cost, with amortization being recorded using the straight-line method
over the initial term of the contract of 40 years. Approximately 2 years remain on the contract.
58
XVI. IMPACT FEES
The City records impact fees received in excess of the cost of physical connection to the water and sewer
system as revenues. Corresponding cash is recorded as a restricted asset for future expansion of the
water and sewer system.
XVII. WATER AND SEWER CONTRACTS
The City has separate contracts with the Trinity River Authority of Texas (“TRA”) for the purchase of
treated water and for the transportation, treatment, and disposal of wastewater. The contracts require the
City to pay varying amounts based on the costs associated with water purchased and wastewater
transported and/or treated and disposed. The costs include the City’s proportionate share of TRA’s
operating and maintenance expenses, related debt service costs, plus certain other miscellaneous
charges. The City also purchases water from the City of Dallas-Water Utilities and Dallas County Park
Cities Municipal Utilities District.
Payments during 2020 for the purchase of treated water were $8,721,135 and payments made for the
transportation, treatment, and disposal of wastewater by TRA were $1,782,320. If the City were unable to
fulfill its obligations under the contracts, the only liability for future payment would be its proportionate
share of debt service requirements. In addition, the City does not retain an ongoing financial interest in
TRA and has no representation on the TRA Board; therefore, the TRA contracts are not considered to be
joint venture agreements.
XVIII. PRIOR PERIOD ADJUSTMENT
In the fund financial statements, an adjustment to unearned revenues resulted in a decrease in the
beginning fund balance of the General Fund of $589,801. An adjustment was made for sanitation billings
that increased net position in the Utility Fund for $215,106. An adjustment was made for developer
deposits that decreased fund balance in the Streets Fund for $106,208.
REQUIRED
SUPPLEMENTARY INFORMATION
Budgeted Amounts
Original Final Actual
Variance with
Final Budget -
Positive
(Negative)
REVENUES
Property tax 13,043,001$ 13,043,001$ 12,740,172$ 302,829)$(
Sales tax 29,616,580 29,616,580 25,758,869 3,857,711)(
Mixed beverage tax 2,057,000 2,057,000 1,477,422 579,578)(
Franchise tax 6,906,950 6,906,950 6,216,566 690,384)(
Licenses and permits 1,908,312 1,908,312 1,344,611 563,701)(
Intergovernmental 692,687 692,687 326,563 366,124)(
Charges for services 6,527,100 6,527,100 5,087,860 1,439,240)(
Fines and forfeitures 1,701,712 1,682,512 1,012,037 670,475)(
Investment income 255,500 255,500 152,003 103,497)(
Miscellaneous 692,500 692,500 539,990 152,510)(
Total revenues 63,401,342 63,382,142 54,656,093 8,726,049)(
EXPENDITURES
Current:
General government 17,890,462 17,787,247 17,399,113 388,134
Public safety 16,375,386 16,368,189 16,358,908 9,281
Culture and recreation 14,000,289 14,000,289 14,080,930 80,641)(
Public works 9,114,186 9,114,186 8,686,679 427,507
Capital outlay 105,000 215,412 734,516 519,104)(
Debt service:
Fiscal agent charges - - 3,675 3,675)(
Total expenditures 57,485,323 57,485,323 57,263,821 221,502
EXCESS (DEFICIENCY) OF REVENUE
OVER (UNDER) EXPENDITURES 5,916,019 5,896,819 2,607,728)( 8,504,547)(
OTHER FINANCING SOURCES (USES)
Transfers in 4,536,419 4,536,419 7,817,342 3,280,923
Transfers out 10,515,828)( 10,515,828)( 7,515,828)( 3,000,000
Sale of capital assets 25,700 25,700 132,665 106,965
Insurance recoveries - 130,000 42,374 87,626)(
Total other
financing sources (uses)5,953,709)( 5,823,709)( 476,553 6,300,262
NET CHANGE IN FUND BALANCES 37,690)( 73,110 2,131,175)( 2,204,285)(
FUND BALANCES, BEGINNING 14,295,271 14,295,271 14,295,271 -
PRIOR PERIOD ADJUSTMENT - - 589,801)( 589,801)(
FUND BALANCES, BEGINNING
RESTATED 14,295,271 14,295,271 13,705,470 589,801)(
FUND BALANCES, ENDING 14,257,581$ 14,368,381$ 11,574,295$ 2,794,086)$(
FOR THE YEAR ENDED SEPTEMBER 30, 2020
CITY OF GRAPEVINE, TEXAS
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE
The accompanying notes are an integral
part of this schedule.59
Budgeted Amounts
Original Final Actual
Variance with
Final Budget -
Positive
(Negative)
REVENUES
Taxes 19,704,006$ 19,704,006$ 11,721,385$ 7,982,621)$(
Charges for services 7,564,973 7,589,973 3,407,028 4,182,945)(
Investment income 258,550 258,550 261,950 3,400
Miscellaneous 45,000 20,000 22,582 2,582
Total revenues 27,572,529 27,572,529 15,412,945 12,159,584)(
EXPENDITURES
Current:
Tourism 25,057,727 25,070,324 15,649,237 9,421,087
Capital outlay 31,000 53,710 199,652 145,942)(
Debt Service:
Fiscal agent charges - - 1,816 1,816)(
Total expenditures 25,088,727 25,124,034 15,850,705 9,273,329
EXCESS (DEFICIENCY) OF REVENUE
OVER (UNDER) EXPENDITURES 2,483,802 2,448,495 437,760)( 2,886,255)(
OTHER FINANCING SOURCES (USES)
Transfers in 483,486 464,486 336,524 127,962)(
Transfers out 2,463,906)( 2,441,196)( 2,441,196)( -
Total other financing sources (uses)1,980,420)( 1,976,710)( 2,104,672)( 127,962)(
NET CHANGE IN FUND BALANCES 503,382 471,785 2,542,432)( 3,014,217)(
FUND BALANCES, BEGINNING 20,263,244 20,263,244 20,263,244 -
FUND BALANCES, ENDING 20,766,626$ 20,735,029$ 17,720,812$ 3,014,217)$(
FOR THE YEAR ENDED SEPTEMBER 30, 2020
CITY OF GRAPEVINE, TEXAS
HOTEL OCCUPANCY TAX
BUDGETARY COMPARISON SCHEDULE
The accompanying notes are an integral
part of this schedule.60
Budgeted Amounts
Original Final Actual
Variance with
Final Budget -
Positive
(Negative)
REVENUES
Taxes 14,808,290$ 14,808,290$ 12,501,687$ 2,306,603)$(
Intergovernmental - - 16,671 16,671
Fines and forfeitures 107,000 116,600 52,800 63,800)(
Investment income 100,000 100,000 20,682 79,318)(
Miscellaneous 6,500 6,500 4,346 2,154)(
Total revenues 15,021,790 15,031,390 12,596,186 2,435,204)(
EXPENDITURES
Current:
General government 189,513 189,513 178,098 11,415
Public safety 18,219,101 18,165,271 17,559,508 605,763
Capital outlay - 53,830 44,985 8,845
Total expenditures 18,408,614 18,408,614 17,782,591 626,023
EXCESS (DEFICIENCY) OF REVENUE
OVER (UNDER) EXPENDITURES 3,386,824)( 3,377,224)( 5,186,405)( 1,809,181)(
OTHER FINANCING SOURCES (USES)
Transfers in 3,406,824 3,406,824 3,406,824 -
Transfers out - 20,000)( - 20,000
Total other financing sources (uses)3,406,824 3,386,824 3,406,824 20,000
NET CHANGE IN FUND BALANCES 20,000 9,600 1,779,581)( 1,789,181)(
FUND BALANCES, BEGINNING 1,045,343)( 1,045,343)( 1,045,343)( -
FUND BALANCES, ENDING 1,025,343)$( 1,035,743)$( 2,824,924)$( 1,789,181)$(
FOR THE YEAR ENDED SEPTEMBER 30, 2020
CITY OF GRAPEVINE, TEXAS
CRIME DISTRICT
BUDGETARY COMPARISON SCHEDULE
The accompanying notes are an integral
part of this schedule.61
Budgeted Amounts
Original Final Actual
Variance with
Final Budget -
Positive
(Negative)
REVENUES
Charges for services 2,944,800$ 2,944,800$ 2,252,448$ 692,352)$(
Intergovernmental - - 252 252
Miscellaneous 25,000 25,000 4,888 20,112)(
Total revenues 2,969,800 2,969,800 2,257,588 712,212)(
EXPENDITURES
Current:
Culture and recreation 2,075,447 2,075,447 2,587,990 512,543)(
Capital outlay 156,000 156,000 57,400 98,600
Total expenditures 2,231,447 2,231,447 2,645,390 413,943)(
EXCESS (DEFICIENCY) OF REVENUE
OVER (UNDER) EXPENDITURES 738,353 738,353 387,802)( 1,126,155)(
OTHER FINANCING SOURCES (USES)
Transfers out 689,893)( 689,893)( 689,893)( -
Total other financing sources (uses)689,893)( 689,893)( 689,893)( -
NET CHANGE IN FUND BALANCE 48,460 48,460 1,077,695)( 1,126,155)(
FUND BALANCE, BEGINNING 3,418,748)( 3,418,748)( 3,418,748)( -
FUND BALANCE, ENDING 3,370,288)$( 3,370,288)$( 4,496,443)$( 1,126,155)$(
CITY OF GRAPEVINE, TEXAS
LAKE PARKS FUND
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED SEPTEMBER 30, 2020
The accompanying notes are an integral
part of this schedule.62
Budgeted Amounts
Original Final Actual
Variance with
Final Budget -
Positive
(Negative)
REVENUES
Taxes 4,402,073$ 4,402,073$ 3,872,769$ 529,304)$(
Charges for services - - 60 60
Investment income 125,000 125,000 104,318 20,682)(
Total revenues 4,527,073 4,527,073 3,977,147 549,926)(
EXPENDITURES
Current:
Economic development 2,819,679 2,819,679 3,211,713 392,034)(
Total expenditures 2,819,679 2,819,679 3,211,713 392,034)(
EXCESS (DEFICIENCY) OF REVENUE
OVER (UNDER) EXPENDITURES 1,707,394 1,707,394 765,434 941,960)(
OTHER FINANCING SOURCES (USES)
Transfers out 1,707,394)( 1,707,394)( 1,707,394)( -
Sale of capital assets - - 1,326,216 1,326,216
Total other financing sources (uses)1,707,394)( 1,707,394)( 381,178)( 1,326,216
NET CHANGE IN FUND BALANCES - - 384,256 384,256
FUND BALANCES, BEGINNING 11,830,384 11,830,384 11,830,384 -
FUND BALANCES, ENDING 11,830,384$ 11,830,384$ 12,214,640$ 384,256$
CITY OF GRAPEVINE, TEXAS
4B - ECONOMIC DEVELOPMENT
BUDGETARY COMPARISON SCHEDULE
FOR THE YEAR ENDED SEPTEMBER 30, 2020
The accompanying notes are an integral
part of this schedule.63
Budgeted Amounts
Original Final Actual
Variance with
Final Budget -
Positive
(Negative)
REVENUES
Sales taxes 11,106,218$ 11,106,218$ 8,978,634$ 2,127,584)$(
Investment income 10,000 10,000 5,957 4,043)(
Total revenues 11,116,218 11,116,218 8,984,591 2,131,627)(
EXPENDITURES
Current:
Transportation 10,641,732 10,641,732 8,642,110 1,999,622
Total expenditures 10,641,732 10,641,732 8,642,110 1,999,622
EXCESS (DEFICIENCY) OF REVENUE
OVER (UNDER) EXPENDITURES 474,486 474,486 342,481 132,005)(
OTHER FINANCING SOURCES (USES)
Transfers out 464,486)( 464,486)( 336,524)( 127,962
Total other financing sources (uses)464,486)( 464,486)( 336,524)( 127,962
NET CHANGE IN FUND BALANCE 10,000 10,000 5,957 4,043)(
FUND BALANCE, BEGINNING 16,961 16,961 16,961 -
FUND BALANCE, ENDING 26,961$ 26,961$ 22,918$ 4,043)$(
FOR THE YEAR ENDED SEPTEMBER 30, 2020
CITY OF GRAPEVINE, TEXAS
4B - TRANSIT
BUDGETARY COMPARISON SCHEDULE
The accompanying notes are an integral
part of this schedule.64
Plan Year 2014 2015
A. Total pension liability
Service Cost 6,509,572$ 7,082,668$
Interest (on the total pension liability)15,338,396 16,144,617
Difference between expected and actual experience 1,847,827)( 1,393,602)(
Changes of assumptions - 77,299)(
Benefit payments, including refunds of employee contributions 8,121,165)( 9,417,307)(
Net change in total pension liability 11,878,976 12,339,077
Total pension liability - beginning 219,925,733 231,804,709
Total pension liability - ending (a)231,804,709$ 244,143,786$
B. Plan fiduciary net position
Contributions - employer 6,975,288$ 7,547,081$
Contributions - employee 2,583,406 2,769,765
Net investment income 10,365,590 284,606
Benefit payments, including refunds of employee contributions 8,121,165)( 9,417,307)(
Administrative expense 108,213)( 173,344)(
Other 8,897)( 8,562)(
Net change in plan fiduciary net position 11,686,009 1,002,239
Plan fiduciary net position - beginning 181,182,907 192,868,916
Plan fiduciary net position - ending (b)192,868,916 193,871,155
C. Net pension liability - ending (a) - (b)38,935,793$ 50,272,631$
D. Plan fiduciary net position as a percentage of total pension
liability 83.20%79.41%
E. Covered payroll 36,690,944$ 39,260,910$
F. Net pension liability as a percentage of covered payroll 106.12%128.05%
FOR THE YEAR ENDED SEPTEMBER 30, 2020
AND RELATED RATIOS - TEXAS MUNICIPAL RETIREMENT SYSTEM
SCHEDULE OF CHANGES IN NET PENSION LIABILITY
CITY OF GRAPEVINE, TEXAS
Note:GASB Statement No.68 requires 10 years of data to be provided in this schedule.As of September 30,
2020,only 6 years are included and additional years will be added in the future as the information becomes
available.
65
2016 2017 2018 2019
7,293,298$ 7,724,236$ 8,129,774$ 8,579,543$
16,410,412 17,301,746 18,265,311 19,238,959
1,109,085)( 772,200)( 1,201,653)( 659,154
- - - 207,921
9,346,450)( 9,863,833)( 10,499,198)( 11,488,595)(
13,248,175 14,389,949 14,694,234 17,196,982
244,143,786 257,391,961 271,781,910 286,476,144
257,391,961$ 271,781,910$ 286,476,144$ 303,673,126$
7,526,300$ 7,958,051$ 8,375,515$ 8,626,976$
2,764,119 2,922,684 3,093,341 3,250,584
13,104,905 28,801,972 7,113,672)( 35,749,292
9,346,450)( 9,863,833)( 10,499,198)( 11,488,595)(
147,973)( 149,230)( 137,452)( 201,910)(
7,972)( 7,564)( 7,184)( 6,064)(
13,892,929 29,662,080 6,288,650)( 35,930,283
193,871,155 207,764,084 237,426,164 231,137,514
207,764,084 237,426,164 231,137,514 267,067,797
49,627,877$ 34,355,746$ 55,338,630$ 36,605,329$
80.72%87.36%80.68%87.95%
39,444,551$ 41,752,627$ 44,087,711$ 46,426,097$
125.82%82.28%125.52%78.85%
66
Fiscal Year 2014 2015 2016
Actuarial determined contribution 6,911,778$ 7,193,830$ 7,395,291$
Contributions in relation to the actuarially
determined contribution 6,911,778 7,193,830 7,395,291
Contribution deficiency (excess)- - -
Covered payroll 36,595,511 37,658,091 38,748,515
Contributions as a percentage of
covered payroll 18.89%19.10%19.09%
Valuation Date:
Methods and Assumptions Used to Determine Contribution Rates:
Actuarial Cost Method
Amortization Method
Remaining Amortization
Period
Asset Valuation Method
Inflation
Salary Increases
Investment Rate of Return
Retirement Age
Mortality
Other Information
Entry Age Normal
10 Year smoothed market; 12% soft corridor
2.5%
Notes to Schedule of Contributions
Actuarially determined contribution rates are calculated as of December 31st and become effective in January,
13 months and a day later.
CITY OF GRAPEVINE, TEXAS
SCHEDULE OF PENSION CONTRIBUTIONS
TEXAS MUNICIPAL RETIREMENT SYSTEM
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Post-retirement:2019 Municipal Retirees of Texas Mortality Tables.
The rates are projected on a fully generational basis with scale
UMP.
Pre-retirement:PUB(10)mortality tables,with the Public Safety
table used for males and the General Employee table used for
females.The rates are projected on a fully generational basis with
scale UMP.
There were no benefit changes during the year.
Note: GASB Statement No. 68 requires 10 years of data to be provided in this schedule. As of September 30,
2020, only 7 years are included and additional years will be added in the future as the information becomes
available.
Experience-based table of rates that are specific to the City's plan
of benefits.Last updated for the 2019 valuation pursuant to an
experience study of the period 2014 - 2018
Level Percentage of Payroll, Closed
26 years
6.75%
3.50% to 11.50% including inflation
67
2017 2018 2019 2020
7,815,149$ 8,334,727$ $8,848,797 8,735,515 $
7,815,149 8,334,727 8,735,515 8,848,797
- - - -
41,002,879 43,861,106 45,272,727 47,716,819
19.06%19.00%18.64%18.54%
Entry Age Normal
10 Year smoothed market; 12% soft corridor
2.5%
Level Percentage of Payroll, Closed
26 years
6.75%
3.50% to 11.50% including inflation
68
Plan Year 2017 2018 2019
A. Total OPEB liability
Service Cost 2,883,770$ 3,547,117$ 3,955,532$
Interest (on the total OPEB liability)2,452,440 2,423,640 2,606,795
Difference between expected and actual experience 209,342 1,065,868)( 528,026)(
Changes of assumptions 4,730,475 8,510,968)( 6,316,707
Benefit payments 1,821,839)( 1,687,035)( 1,471,310)(
Net change in total OPEB liability 8,454,188 5,293,114)( 10,879,698
Total OPEB liability - beginning 63,837,532 72,291,720 66,998,606
Total OPEB liability - ending (a)72,291,720$ 66,998,606$ 77,878,304$
B. Plan fiduciary net position
Employer Contributions 2,821,839$ 2,187,035$ 1,971,310$
Net investment income 63,643 77,518)( 304,042
Benefit payments 1,821,839)( 1,687,035)( 1,471,310)(
Administrative expense 2,315)( 6,401)( 9,715)(
Net change in plan fiduciary net position 1,061,328 416,081 794,327
Plan fiduciary net position - beginning - 1,061,328 1,477,409
Plan fiduciary net position - ending (b)1,061,328 1,477,409 2,271,736
C. Net OPEB liability - ending (a) - (b)71,230,392$ 65,521,197$ 75,606,568$
D. Plan fiduciary net position as a percentage of
total OPEB liability 1.47%2.21%2.92%
E. Covered payroll 41,752,627$ 44,087,895$ 46,426,087$
F. Net OPEB liability as a percentage of Covered-
employee payroll 170.60%148.61%162.85%
Notes to Schedule:
Included in the changes of assumptions was a change in the discount rate from 3.82% to 2.95%.
GASB Statement No.75 requires 10 years of data to be provided in this schedule.As of September 30,2020,
only 3 years are included. Additional years will be added in the future as the information becomes available.
The demographic assumptions were updated to reflect the 2019 TMRS Experience Study and the health care
trend rates were updated to reflect the repeal of the excise tax on high-cost employer health plans.
CITY OF GRAPEVINE, TEXAS
SCHEDULE OF CHANGES IN NET OPEB LIABILITY
AND RELATED RATIOS
POST-RETIREMENT HEALTH CARE BENEFIT PLAN
FOR THE YEAR ENDED SEPTEMBER 30, 2020
69
70
CITY OF GRAPEVINE, TEXAS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2020
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Budgets
The City follows these procedures in establishing budgetary data reflected in the financial statements:
(1) Prior to August 1, the City Manager submits to the City Council a proposed operating budget for
the fiscal year commencing the following October 1. The operating budget includes proposed
expenditures and the means of financing them.
(2) Public hearings are conducted to obtain taxpayer comments.
(3) Prior to September 15, the budget is legally enacted through passage of an ordinance.
(4) The City Manager is authorized to transfer budgeted amounts between departments within any
fund; however, any revisions that alter the total expenditures of any fund must be approved by
the City Council, after public hearings. Total expenditures may not exceed appropriations at the
individual fund level.
(5) Budgets are legally adopted for the General Fund, Hotel Occupancy Tax Fund, the Crime
District Fund, the 4B – Economic Development Fund, the 4B – Transit Fund, the Lake Parks
Fund, the Debt Service Fund and Enterprise Funds. Budgetary control is maintained at the fund
level.
(6) Budgets for the General, Hotel Occupancy Tax, Crime District, 4-B Economic Development
Fund, 4B–Transit Fund, the Lake Parks Fund, and Debt Service Fund are adopted in
accordance with generally accepted accounting principles. Budget amounts are as amended by
the City Council and adjusted for transfers of budgeted amounts between departments within
any fund, authorized by the City Manager.
(7) Budgetary comparison schedules are presented as required supplementary information for the
General Fund and for each major special revenue fund. Capital Projects Funds have not been
presented as such funds are budgeted over the life of the respective project and not on an
annual basis. Accordingly, formal budgetary integration of these funds is not employed and
comparison of actual results of operations to budgetary data for such funds is not presented.
(8) The budgetary comparison schedules included in the required supplementary information
present a comparison of budgetary data to actual results of operations for the General Fund,
Hotel Occupancy Tax Fund, Crime District Fund, Lake Parks Fund, 4-B Economic Development
Fund, and 4B–Transit Fund. A comparison of budgetary data to actual results of operations for
the Debt Service Fund is presented as supplementary information.
2. EXCESS OF EXPENDITURES OVER APPROPRIATIONS
At September 30, 2020, expenditures exceeded appropriations in the Lake Parks Fund by $413,934, the
4B – Economic Development Fund by $392,034, and the Debt Service Fund by $126,022.
THIS PAGE LEFT BLANK INTENTIONALLY
COMBINING AND INDIVIDUAL
STATEMENTS AND SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues that are restricted in nature for a special purpose limited by state
law and management intentions for expenditures.
Special Revenue Fund – to account for revenues that are restricted in name for a special purpose limited by state
law and management intentions for expenditures. These funds include monies for state and federal forfeitures,
library and parks programs and police in-service training.
Storm Drainage Fund – to account for revenues from a special fee that is restricted to finance the maintenance,
repair, and construction of drainage facilities.
DEBT SERVICE FUND
Debt Service Funds are used to account for the accumulation of resources that are restricted, committed, or assigned for the
payment of principal and interest on long-term obligations of governmental funds.
Tax Increment Financing (TIF) #1 Fund – to account for the accumulation of resources that are restricted,
committed, or assigned for the payment of principal and interest on long-term obligations of TIF #1.
Tax Increment Financing (TIF) #2 Fund – to account for the accumulation of resources that are restricted,
committed, or assigned for the payment of principal and interest on long-term obligations of TIF #2.
CAPITAL PROJECTS FUNDS
Capital Projects Funds – used to account for the acquisition and construction of major capital facilities other than those
financed by proprietary funds and trust funds.
Grant Fund – accounts for the funds received from external sources as they relate to grants awarded to the City.
Parks Open Space and Recreation Fund – used to account for the financing, acquisition, construction and
improvement of parks and public recreation facilities.
Tax Increment Financing (TIF) #2 Fund – established for the financing, acquisition and construction of the
infrastructure surrounding Gaylord Texas Resort and Convention Center.
Streets Fund – is used to account for the construction of improvements to various streets, drainage, and sidewalk
projects.
Street Maintenance and Capital Replacement Fund – to account for resources provided and expended on street
maintenance and capital replacements.
Capital Acquisition Fund – to account for financial resources for the replacement and acquisition of capital assets.
Quality of Life Fund – to account for capital projects as designated by the City Council.
Capital Projects
Special Storm
Revenue Drainage TIF #1 TIF #2 Grant
ASSETS
Cash 2,882,958$ 1,674,241$ -$ 10,176,050$ 96,659$
Receivables:
Accounts, net 14,179 159,505 - 1,838,994 -
Accrued interest 4 2 - 16 5
Due from other governments - - - - 904,239
Prepaid items - - - - 399
Total assets 2,897,141 1,833,748 - 12,015,060 1,001,302
LIABILITIES
Liabilities:
Accounts payable 47,996 31,024 - - 60,802
Accrued and other liabilities 703 33,349 - 1 1,496
Due to other funds - - - - 135,760
Due to other governments 91 - - - -
Unearned revenue 63,397 - - - 627,904
Developer deposits - - - - -
Total liabilities 112,187 64,373 - 1 825,962
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenue 13,413 - - - 308,381
Total deferred inflows
of resources 13,413 - - - 308,381
FUND BALANCES (DEFICITS)
Restricted:
Capital projects 264,287 213,529 - - -
Court security and technology 447,682 - - - -
Public safety 810,467 - - - -
Records preservation 12,018 - - - -
Debt service - - - 12,015,059 -
Culture and recreation 158,786 - - - -
Committed for:
Stormwater drainage
operations - 1,555,846 - - -
Public arts 810,449 - - - -
Assigned for:
Capital projects 244,055 - - - -
Culture and recreation 19,627 - - - -
Public safety 4,170 - - - -
Unassigned - - - - 133,041)(
Total fund balances (deficits)2,771,541 1,769,375 - 12,015,059 133,041)(
Total liabilities, deferred
inflows of resources
and fund balances 2,897,141$ 1,833,748$ -$ 12,015,060$ 1,001,302$
CITY OF GRAPEVINE, TEXAS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2020
Debt ServiceSpecial Revenue
71
Street
Parks Open Maintenance Total Other
Space and and Capital Capital Quality Governmental
Recreation TIF #2 Streets Replacement Acquisition of Life Funds
279,730$ 2,292,552$ 2,712,766$ -$ 4,358,547$ 3,556,753$ 28,030,256$
- - - 2,320 - 70,077 2,085,075
- - 5 4 11 10 57
- - 716,784 22,172 - - 1,643,195
- - - - - - 399
279,730 2,292,552 3,429,555 24,496 4,358,558 3,626,840 31,758,982
- - 670,366 154,338 123,391 44,301 1,132,218
- - - - - - 35,549
- - - 194,456 - - 330,216
- - - - - - 91
- - - - - - 691,301
67,527 - 1,080,588 - - - 1,148,115
67,527 - 1,750,954 348,794 123,391 44,301 3,337,490
- - 365,267 5,543 - 66,077 758,681
- - 365,267 5,543 - 66,077 758,681
- 2,292,552 1,247,208 - 226,761 34,596 4,278,933
- - - - - - 447,682
- - - - - - 810,467
- - - - - - 12,018
- - - - - - 12,015,059
2,849 - - - - - 161,635
- - - - - - 1,555,846
- - - - - - 810,449
- - 66,126 - 4,008,406 3,481,866 7,800,453
209,354 - - - - - 228,981
- - - - - - 4,170
- - - 329,841)( - - 462,882)(
212,203 2,292,552 1,313,334 329,841)( 4,235,167 3,516,462 27,662,811
279,730$ 2,292,552$ 3,429,555$ 24,496$ 4,358,558$ 3,626,840$ 31,758,982$
Capital Projects
72
Capital Projects
Special Storm
Revenue Drainage TIF #1 TIF #2 Grant
REVENUES
Property tax -$ -$ 1,000,506$ 6,296,153$ -$
Franchise tax 191,406 - - - -
Charges for services 141,629 1,491,696 - - -
Fines and forfeitures 60,063 - - - -
Intergovernmental 18,483 37,389 - - 3,281,157
Contributions 124,312 - - - -
Investment income 24,897 18,472 - 87,199 4,784
Miscellaneous 5,669 - - - -
Total revenues 566,459 1,547,557 1,000,506 6,383,352 3,285,941
EXPENDITURES
Current:
General government 21,793 - - - -
Public safety 44,303 - - - 2,451,845
Culture and recreation 129,685 - - - 13,042
Public works - 1,078,454 - - 241,607
Economic development - - - 1,510,250 -
Capital outlay 406,136 576,801 - - 1,061,703
Debt service:
Principal - - 485,000 1,720,000 -
Interest - - 515,506 576,600 -
Fiscal agent charges - - - 750 -
Total expenditures 601,917 1,655,255 1,000,506 3,807,600 3,768,197
EXCESS (DEFICIENCY)
OF REVENUE OVER
(UNDER) EXPENDITURES 35,458)( 107,698)( - 2,575,752 482,256)(
OTHER FINANCING
SOURCES (USES)
Transfers in - - - - 94,700
Transfers out 27,374)( 112,000)( - - -
Sale of capital assets - - - - -
Insurance recoveries - - - - -
Total other financing
sources (uses)27,374)( 112,000)( - - 94,700
NET CHANGE IN FUND BALANCES 62,832)( 219,698)( - 2,575,752 387,556)(
FUND BALANCES, BEGINNING 2,834,373 1,989,073 - 9,439,307 254,515
PRIOR PERIOD ADJUSTMENT - - - - -
FUND BALANCES, BEGINNING,
RESTATED 2,834,373 1,989,073 - 9,439,307 254,515
FUND BALANCES, ENDING 2,771,541$ 1,769,375$ -$ 12,015,059$ 133,041)$(
COMBINING STATEMENT OF REVENUES, EXPENDITURES
CITY OF GRAPEVINE, TEXAS
NONMAJOR GOVERNMENTAL FUNDS
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED SEPTEMBER 30, 2020
Debt ServiceSpecial Revenue
73
Street
Parks Open Maintenance Total Other
Space and and Capital Capital Quality Governmental
Recreation TIF #2 Streets Replacement Acquisition of Life Funds
-$ -$ -$ -$ -$ -$ 7,296,659$
- - - - - - 191,406
135,236 - 28,244 - - - 1,796,805
- - - - - - 60,063
- - 2,934,395 66,516 - - 6,337,940
- - - - - - 124,312
2,637 26,468 44,101 40,289 67,271 89,913 406,031
- - 3,450 8,479 - 11,621 29,219
137,873 26,468 3,010,190 115,284 67,271 101,534 16,242,435
- - - 167,544 5,342 - 194,679
- - - 45,072 62,927 - 2,604,147
- - - 1,711,203 846 59,390 1,914,166
- - 6,340 1,641,331 - - 2,967,732
- - - - - - 1,510,250
135,236 - 5,671,418 947,011 1,519,608 2,326,340 12,644,253
- - - - - 216,840 2,421,840
- - - - - 90,458 1,182,564
- 724 - - 308 - 1,782
135,236 724 5,677,758 4,512,161 1,589,031 2,693,028 25,441,413
2,637 25,744 2,667,568)( 4,396,877)( 1,521,760)( 2,591,494)( 9,198,978)(
- - - 3,298,149 830,004 - 4,222,853
- - 149,086)( - 3,100,000)( 94,700)( 3,483,160)(
- - - 1,500 3,550 - 5,050
- - - 1,984 8,884 - 10,868
- - 149,086)( 3,301,633 2,257,562)( 94,700)( 755,611
2,637 25,744 2,816,654)( 1,095,244)( 3,779,322)( 2,686,194)( 8,443,367)(
209,566 2,266,808 4,236,196 765,403 8,014,489 6,202,656 36,212,386
- - 106,208)( - - - 106,208)(
209,566 2,266,808 4,129,988 765,403 8,014,489 6,202,656 36,106,178
212,203$ 2,292,552$ 1,313,334$ 329,841)$( 4,235,167$ 3,516,462$ 27,662,811$
Capital Projects
74
Budgeted Amounts
Original Final Actual
Variance with
Final Budget -
Positive
(Negative)
REVENUES
Taxes 13,071,947$ 13,071,947$ 12,865,818$ 206,129)$(
Investment income 150,000 150,000 118,835 31,165)(
Total revenues 13,221,947 13,221,947 12,984,653 237,294)(
EXPENDITURES
Debt service:
Principal 10,337,553 10,337,553 10,337,553 -
Interest 5,368,332 5,368,332 5,368,339 7)(
Fiscal agent charges - - 126,015 126,015)(
Total expenditures 15,705,885 15,705,885 15,831,907 126,022)(
EXCESS (DEFICIENCY) OF REVENUE
OVER (UNDER) EXPENDITURES 2,483,938)( 2,483,938)( 2,847,254)( 363,316)(
OTHER FINANCING SOURCES (USES)
Transfers in 2,387,064 2,387,064 2,387,064 -
Total other financing
sources (uses)2,387,064 2,387,064 2,387,064 -
NET CHANGE IN FUND BALANCE 96,874)( 96,874)( 460,190)( 363,316)(
FUND BALANCE, BEGINNING 7,749,786 7,749,786 7,749,786 -
FUND BALANCE, ENDING 7,652,912$ 7,652,912$ 7,289,596$ 363,316)$(
FOR THE YEAR ENDED SEPTEMBER 30, 2020
CITY OF GRAPEVINE, TEXAS
DEBT SERVICE FUND
BUDGETARY COMPARISON SCHEDULE
75
Balance Balance
9/30/2019 Additions Deletions 9/30/2020
Cash and cash equivalents 18,607$ 39,595$ 29,507$ 28,695$
Total assets 18,607$ 39,595$ 29,507$ 28,695$
Due to beneficiary 18,607$ 39,595$ 29,507$ 28,695$
Total liabilities 18,607$ 39,595$ 29,507$ 28,695$
Balance Balance
9/30/2019 Additions Deletions 9/30/2020
Cash and cash equivalents 137,706$ 1,549$ -$ 139,255$
Total assets 137,706$ 1,549$ -$ 139,255$
Due to beneficiary 137,706$ 1,549$ -$ 139,255$
Total liabilities 137,706$ 1,549$ -$ 139,255$
Balance Balance
9/30/2019 Additions Deletions 9/30/2020
Cash and cash equivalents 14,353$ 128$ -$ 14,481$
Total assets 14,353$ 128$ -$ 14,481$
Due to beneficiary 14,353$ 128$ -$ 14,481$
Total liabilities 14,353$ 128$ -$ 14,481$
Balance Balance
9/30/2019 Additions Deletions 9/30/2020
Cash and cash equivalents 170,666$ 41,272$ 29,507$ 182,431$
Total assets 170,666$ 41,272$ 29,507$ 182,431$
Due to beneficiary 170,666$ 41,272$ 29,507$ 182,431$
Total liabilities 170,666$ 41,272$ 29,507$ 182,431$
Employee Activity Fund
Industrial Development Corporation
Total Agency Funds
CITY OF GRAPEVINE, TEXAS
COMBINING STATEMENT OF CHANGES IN
AGENCY FUNDS
ASSETS AND LIABILITIES
W.D. Tate Scholarship
FOR THE YEAR ENDED SEPTEMBER 30, 2020
76
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STATISTICAL SECTION
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STATISTICAL SECTION
This part of the City of Grapevine, Texas’ comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures, and required supplementary information says about the City’s
overall financial health.
Contents
Page
Financial Trends 77 – 86
These schedules contain trend information to help the reader understand
how the City’s financial performance and well-being have changed over time.
Revenue Capacity 87 – 94
These schedules contain information to help the reader assess the City’s
most significant local revenue sources. Sales tax is the City’s most
significant revenue source. Beginning in FY 2010, sales tax revenue
information became available to the City and is in Tables 5 and 6.
Information about principal sales tax revenue payers is confidential under
Texas statutes and is not provided. Additionally, information about the City’s
second most significant local revenue source, the property tax, is provided.
Debt Capacity 95 – 102
These schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and the City’s
ability to issue additional debt in the future.
Demographic and Economic Information 103 – 106
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the City’s financial activities
take place.
Operating Information 107 – 112
These schedules contain service and infrastructure data to help the reader
understand how the information in the City’s financial report relates to the
services the City provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
2011 2012 2013 2014
Governmental activities:
Net investment in capital assets 84,069$ 88,342$ 114,212$ 139,392$
Restricted 61,712 71,909 78,377 74,312
Unrestricted 10,421 14,469 3,570)( 10,147)(
Total governmental activities net position 156,202$ 174,720$ 189,019$ 203,557$
Business-type activities:
Net investment in capital assets 70,771$ 70,171$ 74,750$ 77,872$
Restricted 7,133 8,969 8,032 2,612
Unrestricted 11,240 10,530 6,912 11,590
Total business-type activities net position 89,144$ 89,670$ 89,694$ 92,074$
Primary government:
Net investment in capital assets 154,840$ 158,513$ 172,921$ 217,264$
Restricted 68,845 80,878 86,409 76,924
Unrestricted 21,661 24,999 19,382 1,443
Total primary government net position 245,346$ 264,390$ 278,712$ 295,631$
Source: Comprehensive Annual Financial Reports
Fiscal Year
CITY OF GRAPEVINE, TEXAS
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Thousands)
(accrual basis of accounting)
77
TABLE 1
2015 2016 2017 2018 2019 2020
176,133$ 176,591$ 214,481$ 226,572$ 241,514$ 279,795$
71,932 78,219 73,872 80,078 95,251 69,120
21,047)( 14,043)( 26,090)( 68,706)( 61,220)( 76,423)(
227,018$ 240,767$ 262,263$ 237,943$ 275,544$ 272,491$
104,296$ 126,510$ 122,775$ 125,604$ 131,141$ 133,349$
2,649 3,205 3,467 4,187 3,714 3,147
8,094 8,507 10,548 11,817 6,303 5,262
115,039$ 138,222$ 136,790$ 141,608$ 141,158$ 141,758$
280,429$ 303,101$ 337,256$ 352,175$ 372,654$ 413,144$
74,581 81,424 77,339 84,265 98,965 72,267
12,953)( 5,536)( 15,542)( 56,889)( 54,917)( 71,161)(
342,057$ 378,989$ 399,053$ 379,551$ 416,702$ 414,250$
Fiscal Year
78
2011 2012 2013 2014
EXPENSES
Governmental activities:
General government 22,526$ 18,370$ 18,602$ 16,348$
Public safety 27,588 28,264 28,309 30,039
Culture and recreation 26,673 27,954 29,578 31,549
Public works 10,563 11,056 12,216 13,689
Transportation 7,901 7,789 8,620 11,275
Economic development 3,394 4,040 3,609 1,405
Tourism - - - -
Interest on long-term debt 5,140 4,590 4,095 6,029
Total governmental activities expenses 103,785 102,063 105,029 110,334
Business-type activities:
Water and sewer 18,972 18,372 18,807 19,763
Lake Enterprise 3,062 3,053 3,156 2,764
Total business-type activities expenses 22,034 21,425 21,963 22,527
Total primary government expenses 125,819$ 123,488$ 126,992$ 132,861$
PROGRAM REVENUES
Governmental activities:
Fees, fines, and charges for services:
General government 4,250$ 2,547$ 2,013$ 1,992$
Public safety 3,346 3,736 3,971 4,109
Culture and recreation 9,198 10,099 10,012 10,531
Public works 1,378 1,418 1,486 1,504
Tourism - - - -
Operating grants and contributions 1,212 1,124 526 275
Capital grants and contributions 1,302 810 108 203
Total governmental activities
program revenues 20,686 19,734 18,116 18,614
Business-type activities:
Charges for services:
Water and sewer 21,168 20,481 20,185 23,667
Lake Enterprise 2,862 3,079 3,120 3,017
Capital grants and contributions 26,685 - - -
Total business-type activities
program revenues 50,715 23,560 23,305 26,684
Total primary government
program revenues 71,401$ 43,294$ 41,421$ 45,298$
Fiscal Year
CITY OF GRAPEVINE, TEXAS
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Thousands)
(accrual basis of accounting)
79
TABLE 2
2015 2016 2017 2018 2019 2020
18,944$ 21,301$ 20,417$ 19,231$ 18,382$ 21,449$
31,305 31,686 35,651 35,954 38,472 41,528
15,617 18,354 21,087 19,597 21,341 22,432
12,817 13,590 16,585 16,826 17,930 18,876
9,223 9,600 9,078 9,467 10,047 8,642
10,036 15,976 9,757 14,954 5,122 4,881
16,966 18,526 20,507 21,561 23,886 16,982
6,013 5,480 5,332 5,174 5,312 5,823
120,921 134,513 138,414 142,764 140,493 140,613
19,691 20,498 20,926 22,411 23,901 25,228
2,850 3,256 3,242 3,217 4,159 2,790
22,541 23,754 24,168 25,628 28,060 28,018
143,462$ 158,267$ 162,582$ 168,392$ 168,553$ 168,631$
1,723$ 2,735$ 2,155$ 1,962$ 2,050$ 1,495$
3,705 3,789 2,198 1,663 2,200 2,183
4,322 4,526 6,003 6,340 4,394 5,258
1,448 1,495 3,367 3,449 3,674 3,078
7,327 7,721 7,840 7,882 7,635 3,407
1,381 383 1,079 2,200 993 3,576
1,609 9,549 8,171 5,007 23,230 6,733
21,515 30,198 30,813 28,503 44,176 25,730
22,434 23,824 24,663 28,267 28,267 27,224
2,214 2,816 3,174 3,131 3,131 3,057
4,896 17,981 1,803 4,984 4,984 3,714
29,544 44,621 29,640 36,382 36,382 33,995
51,059$ 74,819$ 60,453$ 64,885$ 80,558$ 59,725$
Fiscal Year
80
2011 2012 2013 2014
NET (EXPENSE) REVENUES
Governmental activities 83,099)$( 82,329)$( 86,913)$( 91,720)$(
Business-type activities 1,996 2,135 1,342 4,158
Total primary government net expense 81,103)( 80,194)( 85,571)( 87,562)(
GENERAL REVENUES AND OTHER
CHANGES IN NET POSITION
Governmental activities:
Taxes
Property 29,559 32,048 29,979 30,917
Franchise 6,401 6,356 6,618 6,785
Hotel occupancy 12,105 12,327 12,772 14,025
Sales 45,572 46,932 49,047 52,020
Mixed beverage 1,223 1,051 1,159 1,567
Investment earnings 338 286 159 120
Gain on sale of capital assets 33 - - 262
Miscellaneous - 170 6 23
Transfers 1,638 1,677 1,471 1,661
Total governmental activities 96,869 100,847 101,211 107,380
Business-type activities:
Investment earnings 75 68 152 20
Miscellaneous 170 - - -
Transfers 1,638)( 1,677)( 1,471)( 1,661)(
Total business-type activities 1,393)( 1,609)( 1,319)( 1,641)(
Total primary government 95,476 99,238 99,892 105,739
CHANGE IN NET POSITION
Governmental activities 13,770 18,518 14,298 15,658
Business-type activities 432 526 23 2,517
Total primary government 14,202$ 19,044$ 14,321$ 18,175$
Source: Comprehensive Annual Financial Reports
Fiscal Year
CITY OF GRAPEVINE, TEXAS
CHANGES IN NET POSITION
(continued)
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Thousands)
(accrual basis of accounting)
81
TABLE 2
2015 2016 2017 2018 2019 2020
99,406)$( 104,316)$( 107,602)$( 114,261)$( 114,261)$( 114,883)$(
7,003 20,868 5,472 10,754 10,754 5,977
92,403)( 83,448)( 102,130)( 103,507)( 103,507)( 108,906)(
30,903 31,617 26,027 28,561 28,561 33,161
6,824 6,818 6,602 7,145 7,145 6,182
18,103 18,965 18,801 19,875 19,875 11,721
54,060 55,884 53,854 56,029 56,029 51,112
1,648 1,710 1,733 1,793 1,793 1,477
266 887 1,523 2,737 2,737 1,893
1,490 4,144 1,605 262 262 227
11 204 579 331 331 865
1,424 2,164)( 3,199 3,020 3,020 5,889
114,729 118,065 113,923 119,753 119,753 112,527
43 148 306 580 580 296
- - - - - -
1,424)( 2,164 3,199)( 3,020)( 3,020)( 5,889)(
1,381)( 2,315 2,893)( 2,440)( 2,440)( 5,593)(
113,348 120,380 111,030 117,313 117,313 106,934
15,323 13,748 6,323 5,492 5,492 2,356)(
5,629 23,182 2,578 8,314 8,314 384
20,952$ 36,930$ 8,901$ 13,806$ 13,806$ 1,972)$(
Fiscal Year
82
2011 2012 2013 2014
General fund:
Nonspendable*657$ 653$ 659$ 600$
Assigned - - - -
Unassigned 8,938 11,742 11,303 12,318
Total general fund 9,595$ 12,395$ 11,962$ 12,918$
All other governmental funds:
Reserved for:
Nonspendable:
Inventories 15$ 18$ 18$ 15$
Prepaid items 42 14 4 23
Notes receivable - - - -
Property held for sale - - - -
Restricted for:
Debt service 26,713 28,858 29,051 28,234
Capital projects 19,863 17,655 90,741 68,131
Court security and technology - - - -
Economic development 28,985 35,493 41,198 40,137
Public safety 836 1,078 1,088 1,288
Records preservation - - - -
Tourism 4,605 5,954 5,268 6,544
Transportation 345 369 412 459
Culture and recreation 264 152 41 48
Committed for:
Stormwater drainage operations 3,005 3,179 2,024 990
Public arts 453 600 697 841
Assigned for:
Economic development - - - 1,717
Capital projects 9,322 10,627 8,043 13,382
Tourism 841 635 677 732
Culture and recreation - - - -
Public safety - - - -
Unassigned 1,822)( 1,777)( 841)( 1,123)(
Total all other governmental funds 89,452$ 93,467$ 102,855$ 178,421$
Note:
* Includes inventory, advances to other funds, and prepaid items.
Source: Comprehensive Annual Financial Reports
(Unaudited) (Amounts Expressed in Thousands)
(modified accrual basis of accounting)
Fiscal Year
CITY OF GRAPEVINE, TEXAS
FUND BALANCES
GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
83
TABLE 3
2015 2016 2017 2018 2019 2020
553$ 779$ 943$ 1,303$ 1,209$ 893$
- - - 1,401 901 429
13,402 12,753 11,452 12,852 12,186 10,252
13,955$ 13,532$ 12,395$ 15,556$ 14,296$ 11,574$
23$ 17$ 482$ 8$ 9$ 5$
122 305 171 412 146 311
- - 500 - - -
- - - 146 - -
25,720 18,682 10,923 10,321 18,591 20,707
48,216 22,143 55,024 78,573 66,724 41,370
- - 305 357 404 448
46,996 56,461 15,604 8,517 3,633 9,800
1,818 1,310 473 602 747 810
- - 19 7 10 12
- - 10,777 13,123 13,688 97
461 465 - 9 17 23
38 49 160 219 193 162
613 923 1,196 1,516 1,778 1,556
954 1,084 1,046 1,116 992 810
1,384 3,269 9,806 4,696 9,164 3,651
16,034 25,033 19,313 19,188 24,107 12,827
910 1,270 1 542 220 229
12,801 19,140 12,914 3,597 6,448 17,338
- - 2 3 4 4
1,477)( 3,769)( 5,076)( 3,106)( 4,491)( 7,815)(
161,418$ 154,613$ 146,382$ 133,640$ 142,384$ 102,345$
Fiscal Year
84
2011 2012 2013 2014
REVENUES
Taxes:
Property 29,930$ 32,147$ 28,326$ 33,470$
Hotel occupancy 12,105 12,326 12,772 14,025
Sales 45,572 46,932 49,047 52,020
Mixed beverage 1,223 1,051 1,159 1,567
Franchise 6,401 6,356 6,618 6,785
Licenses and permits 1,044 1,542 1,248 1,337
Intergovernmental 1,505 1,012 1,175 430
Charges for services 14,582 13,572 13,286 13,755
Fines and forfeitures 1,712 2,017 2,258 2,413
Contributions 73 194 162 169
Interest and miscellaneous 1,741 1,192 731 872
Total revenues 115,888 118,341 116,782 126,843
EXPENDITURES
General government 17,681 13,979 13,714 15,611
Public safety 24,297 25,539 25,674 27,215
Culture and recreation 23,495 24,832 26,202 27,707
Public works 5,821 6,061 7,037 8,335
Transportation 7,901 7,789 8,620 11,275
Economic development 3,405 4,543 3,609 1,405
Tourism - - - -
Capital outlay 13,076 9,446 17,011 53,121
Debt service:
Principal 12,328 11,164 11,462 12,664
Interest and fiscal charges 5,029 4,564 3,864 6,695
Payment to refunded bond escrow agent - - - -
Bond issuance costs - - - -
Other 30 25 394 269
Total expenditures 113,063 107,942 117,587 164,297
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,825$ 10,399$ 805)$( 37,454)$(
OTHER FINANCING SOURCES (USES)
Issuance of debt 809 - 78,640 19,500
Premium on issuance of debt - - 3,455 -
Payment to refunded bond escrow agent - - 7,834)( -
Sale of capital assets 155 112 204 250
Insurance recoveries - - - -
Transfers in 17,593 15,244 19,768 18,507
Transfers out 15,955)( 13,568)( 18,297)( 16,846)(
Total other financing sources (uses)2,602 1,788 75,936 21,411
NET CHANGE IN FUND BALANCES 5,427$ 12,187$ 75,131$ 16,043)$(
DEBT SERVICE AS A PERCENTAGE OF
NONCAPITAL EXPENDITURES 16.8%15.7%14.7%17.5%
Source: Comprehensive Annual Financial Reports
CITY OF GRAPEVINE, TEXAS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Thousands)
(modified accrual basis of accounting)
Fiscal Year
85
TABLE 4
2015 2016 2017 2018 2019 2020
30,931$ 31,650$ 25,991$ 28,350$ 30,883$ 33,150$
18,103 18,965 18,801 19,875 20,767 11,721
54,060 55,884 53,854 56,029 59,298 51,112
1,648 1,710 1,733 1,793 2,146 1,477
6,824 6,662 6,602 7,064 6,618 6,408
1,527 1,745 1,883 1,604 1,969 1,345
974 1,356 1,939 2,270 1,736 22,071
14,681 15,568 17,308 17,973 16,152 12,544
2,100 1,967 1,968 1,736 1,662 1,125
304 253 370 318 233 124
872 2,861 2,630 4,429 4,726 2,810
132,024 138,621 133,079 141,441 146,190 143,887
17,878 19,768 18,543 17,018 16,010 17,979
28,672 27,803 30,441 32,240 34,490 36,886
12,931 14,731 16,686 18,451 17,173 18,583
8,077 7,938 10,526 11,367 11,600 12,720
9,223 9,600 9,078 9,467 10,047 8,642
10,036 15,976 9,757 16,639 5,109 4,851
16,179 17,702 19,735 20,335 22,414 15,649
24,476 33,576 32,596 30,029 45,994 58,610
14,477 16,099 13,018 12,059 12,564 12,759
6,405 6,234 5,850 5,974 6,001 6,550
22,812 1 - 17,025 6,077 -
358 73 127 392 171 -
21 10 120 47 141 135
171,545 169,511 166,477 191,043 187,791 193,364
39,521)$( 30,890)$( 33,398)$( 49,602)$( 41,601)$( 49,477)$(
35,065 3,070 10,900 51,740 5,395 -
3,757 192 590 1,265 1,973 -
13,643)( - 1,391)( - - -
6,110 13,856 5,406 311 4,439 1,471
800 540 649 66 63 53
17,248 21,735 56,144 46,963 24,310 22,063
15,585)( 17,764)( 52,781)( 43,943)( 17,357)( 16,174)(
33,752 21,629 19,517 56,402 18,823 7,413
5,769)$( 9,261)$( 13,881)$( 6,800$ 22,778)$( 42,064)$(
30.2%16.5%14.1%11.5%13.0%14.2%
Fiscal Year
86
Function/Program 2011 2012 2013 2014
Agriculture/forestry/fishing/hunting -$ -$ -$ 414$
Construction 23,201 32,162 38,720 46,112
Manufacturing 149,783 157,519 157,403 164,251
Wholesale trade 236,878 245,838 266,052 276,437
Retail trade 816,452 849,825 897,364 930,931
Transportation/warehousing 13,817 11,810 13,751 12,539
Information 36,209 42,137 49,559 58,753
Finance/insurance 1,049 993 804 808
Professional/scientific/technical 15,485 18,966 20,321 28,112
Real estate/rental/leasing 37,831 36,597 46,875 52,312
Management of companies/enterprises 1 - - -
Admin/support/waste mgmt/remediation svcs 54,218 47,264 47,117 60,296
Educational services 531 2,762 1,931 1,079
Health care/social assistance 2,465 2,999 2,961 2,028
Arts/entertainment/recreation 25,657 24,811 24,592 27,313
Accomodation/food service 453,507 477,342 472,830 522,296
Other services (except public administration)24,868 24,250 33,721 38,588
Unclassified 17,457 - - -
Total 1,909,409$ 1,975,275$ 2,073,999$ 2,222,269$
City direct sales tax rate 2.0% 2.0% 2.0% 2.0%
Source: Texas Comptroller
(1) Only three quarters of information were available for the fiscal year.
CITY OF GRAPEVINE, TEXAS
TAXABLE SALES BY CATEGORY
LAST TEN FISCAL YEARS
(Amounts Expressed in Thousands)
Fiscal Year
87
TABLE 5
2015 2016 2017 2018 2019 2020 (1)
514$ 91$ 253$ -$ -$ 149$
49,895 53,763 44,852 65,213 75,647 50,937
164,726 161,142 160,782 166,863 196,104 130,123
285,962 299,679 300,261 322,482 327,975 240,939
921,231 931,679 939,436 945,789 944,368 636,022
13,467 12,455 12,587 9,951 10,423 8,670
68,853 68,143 42,752 40,091 35,698 18,455
808 885 1,190 1,691 887 655
26,370 31,957 31,074 35,317 33,102 29,819
61,550 63,637 66,687 67,963 63,727 42,249
- - - 2,719 3,029 2,057
76,038 55,143 54,579 49,130 42,620 35,490
645 634 383 364 436 458
1,735 1,784 1,574 1,494 1,554 975
16,310 22,103 26,622 28,611 28,966 16,428
572,882 586,562 593,030 625,298 675,407 372,302
47,645 49,898 38,372 37,280 38,357 24,225
8 - - - - -
2,308,639$ 2,339,555$ 2,314,434$ 2,400,256$ 2,478,300$ 1,609,953$
2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Fiscal Year
88
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TABLE 6
City State
Fiscal Year Direct Rate of Texas
2011 2.00%$ 6.25%$
2012 2.00% 6.25%
2013 2.00% 6.25%
2014 2.00% 6.25%
2015 2.00% 6.25%
2016 2.00% 6.25%
2017 2.00% 6.25%
2018 2.00% 6.25%
2019 2.00% 6.25%
2020 2.00% 6.25%
Source: City Budget Office and Texas Comptroller
DIRECT AND OVERLAPPING SALES TAX RATES
LAST TEN FISCAL YEARS
CITY OF GRAPEVINE, TEXAS
89
TABLE 7
Less:Total Taxable Total
Fiscal Real Property Personal Tax-Exempt Assessed Direct
Year Property Property Property Value Tax Rate
2011 7,320,478$ 2,309,223$ 3,765,059$ 5,864,642$ 0.3500$
2012 7,111,827 2,005,549 3,205,119 5,912,257 0.3480
2013 7,373,725 2,169,614 3,311,568 6,231,772 0.3457
2014 7,744,617 2,141,161 3,421,500 6,464,278 0.3425
2015 7,972,445 2,437,129 3,816,444 6,593,130 0.3324
2016 8,127,156 2,620,115 3,874,106 6,873,165 0.3284
2017 9,369,452 2,705,089 4,462,148 7,612,393 0.2893
2018 9,911,677 3,033,390 4,586,943 8,358,123 0.2893
2019 10,450,709 3,316,173 4,760,485 9,006,397 0.2893
2020 11,430,947 3,416,886 5,069,749 9,778,084 0.2843
Source:Grapevine/Colleyville ISD Tax Assessor
CITY OF GRAPEVINE, TEXAS
Estimated Market Value
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Thousands)
90
TABLE 8
Total
Operating/Total Direct and
Fiscal General Debt Direct Junior School Hospital Overlapping
Year Rate Service Rate College District District County Rates
2011 0.1346$ 0.2154$ 0.3500$ 0.1380$ 1.2900$ 0.2280$ 0.2640$ 2.2700$
2012 0.1423 0.2057 0.3480 0.1490 1.3100 0.2280 0.2640 2.2990
2013 0.1357 0.2100 0.3457 0.1490 1.3201 0.2279 0.2640 2.3067
2014 0.1314 0.2111 0.3425 0.1490 1.3201 0.2279 0.2640 2.3035
2015 0.1274 0.2050 0.3324 0.1495 1.3201 0.2279 0.2640 2.2939
2016 0.1421 0.1863 0.3284 0.1495 1.3201 0.2279 0.2640 2.2899
2017 0.1265 0.1628 0.2893 0.1447 1.3967 0.2279 0.2540 2.3126
2018 0.1347 0.1545 0.2893 0.1401 1.3967 0.2244 0.2440 2.2945
2019 0.1306 0.1587 0.2893 0.1361 1.3967 0.2244 0.2340 2.2805
2020 0.1416 0.1427 0.2843 0.1302 1.3267 0.2244 0.2340 2.1995
Source:Tarrant County Appraisal District
Note:
CITY OF GRAPEVINE, TEXAS
Tax rate limitations imposed by the Home Rules Section of the Texas Constitution,Article II,Section 5,
provide that a maximum tax rate of $2.50 per $100 valuation may be imposed in any one year.No
provisions are made limiting the amount of this $2.50 tax rate that can be used for debt service.
(Unaudited)
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
City Direct Rates Overlapping Rates
91
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Value
American Airlines Inc/Envoy Air Inc 637,590$ 6.12%
Opryland Hotel 379,753 3.65%
Grapevine Mills Mall LP 244,976 2.35%
Great Wolf Lodge Grapevine LLC 184,531 1.77%
Fund Riverwalk LLC 109,700 1.05%
Amazon.com Services Inc 91,050 0.87%
WMCI Dallas IX LLC 89,910 0.86%
Oncor Electric Delivery Co., Llc.89,157 0.86%
Silver Oaks LP 79,810 0.77%
Spirit Airlines Inc 76,174 0.73%
Total 1,982,651$ 19.03%
Source: Grapevine/Colleyville ISD Tax Assessor
FY 2020
CITY OF GRAPEVINE, TEXAS
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(Unaudited) (Amounts Expressed in Thousands)
92
TABLE 9
Percentage
of Total City
Taxable Taxable
Assessed Assessed
Taxpayer Value Value
American Airlines Inc 292,447$ 4.99%
Gaylord Texan Resort
and Convention Center 247,782 4.23%
Grapevine Mills, Ltd. Partnership 205,000 3.50%
CAE Simuflite/Simuflite Training Unit 130,794 2.23%
Great Wolf Lodge 128,745 2.20%
Rackspace US, Inc.87,500 1.49%
A & B Properties, Inc., etal 53,615 0.91%
Chesapeake Operating 51,340 0.88%
Oncor Electric Delivery Co., LLC.51,102 0.87%
Verde Riverwalk Apts II, LP 46,540 0.79%
Total 1,294,865$ 22.09%
FY 2011
93
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TABLE 10
Fiscal
Year
Ended
Original
Levy Adjustments
Adjusted
Levy Amount
Percentage
of Levy
Collected
Collections
in
Subsequent
Years Amount
Percentage
of Levy
2011 20,953$ 161$ 21,114$ 20,954$ 99.24%135$ 21,089$ 99.88%
2012 21,325 (4) 21,321 21,211 99.48%93 21,304 99.92%
2013 21,543 (75) 21,468 21,364 99.52%89 21,453 99.93%
2014 21,739 108 21,847 21,804 99.80%33 21,836 99.95%
2015 22,249 (232) 22,017 21,952 99.70%53 22,004 99.94%
2016 21,506 1,064 22,570 22,498 99.68%51 22,549 99.91%
2017 21,669 301 21,970 21,905 99.70%41 21,946 99.89%
2018 23,387 779 24,166 24,023 99.41%109 24,132 99.86%
2019 25,711 370 26,081 25,946 99.48%14 25,960 99.54%
2020 27,136 660 27,796 27,532 99.05%- 27,532 99.05%
Source: Grapevine/Colleyville ISD Tax Assessor
CITY OF GRAPEVINE, TEXAS
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Thousands)
Taxes Levied for the Fiscal Year
Collections Within the
Fiscal Year of the Levy Total Collections to Date
94
General Certificates
Fiscal Obligation of Contractual Revenue Tax
Year Bonds Obligation Obligations Bonds Notes
2011 45,335$ 55,473$ -$ -$ 4,852$
2012 40,355 49,569 1,225 - 3,605
2013 102,690 44,459 1,200 - 6,297
2014 100,952 41,325 1,130 19,500 4,514
2015 93,376 13,618 4,317 39,030 3,107
2016 88,200 14,065 4,224 36,855 2,529
2017 80,718 21,286 3,692 34,630 1,934
2018 73,200 51,470 5,645 34,153 1,209
2019 96,587 43,645 4,878 31,480 612
2020 88,523 42,303 4,088 28,703 -
Note:
*See Table 17 for personal income and population data.
Governmental Activities
Details regarding the City's outstanding debt can be found in the notes to the financial
statements.
CITY OF GRAPEVINE, TEXAS
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Thousands, excluding
Percentage of Personal Income and Per Capita)
95
TABLE 11
Water General Total Primary Percentage
and Sewer Obligation Certificates Government of Personal
Obligations Bonds of Obligation Debt Income Per Capita*
1,035$ 14,042$ -$ 120,737$ 7.14% 2,569$
790 9,923 - 105,467 6.16% 2,197
- 10,962 - 165,608 8.89% 3,380
- 9,556 - 176,977 9.26% 3,612
- 7,579 10,097 171,124 8.32% 3,492
- 2,551 8,902 157,326 7.16% 3,147
- 2,388 8,902 153,550 6.83% 3,011
- 1,892 8,901 176,470 7.85% 3,394
- 1,025 8,476 186,703 8.11% 3,523
- 556 8,051 172,224 6.85% 3,191
See Table 17 for personal income and population data.
Business-type Activities
96
General Certificates General Certificates
Fiscal Obligation of Contractual Tax Obligation of
Year Bonds Obligation Obligations Notes Total Bonds Obligation
2011 45,335$ 55,473$ -$ -$ 100,808$ 15,135$ -$
2012 40,355 49,569 1,225 - 91,149 9,895 -
2013 102,690 44,459 1,200 4,015 152,364 10,845 -
2014 100,952 41,325 1,130 3,488 146,895 9,556 -
2015 93,376 13,618 4,317 2,935 114,246 7,579 10,097
2016 88,200 14,065 4,224 2,373 108,862 2,551 8,902
2017 80,718 21,286 3,692 1,796 107,492 2,388 8,902
2018 73,200 51,470 5,645 1,209 131,524 1,892 8,901
2019 96,587 43,645 4,878 612 145,722 1,025 8,476
2020 88,523 42,303 4,088 - 134,914 556 8,051
Note:Details regarding the City's outstanding debt can be found in notes to the financial statements.
a See Table 7 for property value data.
b See Table 17 for population data.
Governmental Activities Business-type Activities
CITY OF GRAPEVINE, TEXAS
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Thousands except
Percentage of Actual Taxable Value of Property and Per Capita)
97
TABLE 12
Resources Percentage of
Restricted Net Actual
For Debt Bonded Taxable Value Per
Service Debt of Property a Capita b
26,713$ 89,230$ 1.52% 1,899$
28,858 72,186 1.22% 1,504
29,051 134,158 2.15% 2,738
20,985 135,466 2.10% 2,765
19,603 112,319 1.70% 2,292
17,938 102,377 1.49% 2,048
16,087 102,695 1.35% 2,014
9,829 132,488 1.59% 2,548
18,050 137,173 1.52% 2,588
20,258 123,263 1.26% 2,284
98
TABLE 13
Estimated
Share of
Estimated Direct and
Debt Percentage Overlapping
Outstanding Applicable Debt
Debt Repaid with Property Taxes:
Carroll Independent School District 346,705,000$ 5.50%19,068,775$
Coppell Independent School District 367,610,981 2.02%7,425,742
Dallas County 130,445,000 0.10%130,445
Dallas County Community College District 135,375,000 0.10%135,375
Dallas County Hospital District 622,000,000 0.10%622,000
Dallas County Schools 27,204,352 0.10%27,204
Denton County 611,835,000 less than .01%-
Grapevine-Colleyville Independent School District 399,400,437 55.51%221,707,183
Northwest Independent School District 1,065,295,272 0.06%639,177
Tarrant County 240,445,000 5.32%12,791,674
Tarrant County College District 264,175,000 5.32%14,054,110
Tarrant County Hospital District 16,135,000 5.32%858,382
Subtotal overlapping debt 277,460,067
Total direct - City of Grapevine 163,616,600$ 100.00% 163,616,600
Direct and Overlapping Debt 441,076,667$
Total Direct and Overlapping Debt % of A.V.:4.51%
Total Direct and Overlapping Debt per Capita:8,171$
The percentage of overlapping debt applicable is estimated using taxable assessed property values.
Source:Municipal Advisory Council of Texas
CITY OF GRAPEVINE, TEXAS
Government Unit
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF SEPTEMBER 30, 2020
(Unaudited)
99
TABLE 14
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Tax rate limitations imposed by the Home Rules Section of the Texas Constitution,Article II,Section 5,provide
that a maximum tax rate of $2.50 per $100 valuation may be imposed in any one year.
(Unaudited)
CITY OF GRAPEVINE, TEXAS
100
TABLE 15
Less:Net Principal
Fiscal Total Operating Available and Interest
Year Revenues a Expenses b Revenue Payments Coverage
2014 3,772$ 492$ 3,280$ 443$ 7.40
2015 3,983 1,430 2,553 1,594 1.60
2016 4,170 3,224 946 1,595 0.59
2017 4,062 2,167 1,895 1,593 1.19
2018 4,256 1,918 2,338 1,593 1.47
2019 4,394 1,642 2,752 1,396 1.97
2020 3,873 3,518 355 1,401 0.25
Notes:a Includes tax revenues only
b Includes operating transfers out.
Debt was issued in FY 2014, so prior year data is not available.
Source:Comprehensive Annual Financial Statement
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Thousands, except for Coverage)
4B Economic Development Fund
CITY OF GRAPEVINE, TEXAS
101
TABLE 16
Less:Net Principal
Fiscal Total Operating Available and Interest
Year Revenues a Expenses b Revenue Payments Coverage
2011 4,291$ 731$ 3,560$ 2,664$ 1.34
2012 5,736 1,548 4,188 2,672 1.57
2013 3,637 2,283 1,354 2,679 0.51
2014 5,878 2,446 3,432 2,681 1.28
2015 4,246 2,678 1,568 2,683 0.58
2016 4,416 2,714 1,702 2,273 0.75
2017 4,697 1,410 3,287 2,282 1.44
2018 4,818 1,410 3,408 2,281 1.49
2019 5,806 1,430 4,376 2,287 1.91
2020 6,296 1,510 4,786 2,296 2.08
Notes:a Includes tax revenues only
b Includes operating transfers out.
Source:Grapevine Tax Increment Financing District Reinvestment Zone Number Two Basic Financial
Statements
CITY OF GRAPEVINE, TEXAS
Tax Increment Financing District Reinvestment Zone Number Two
PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Thousands, except for Coverage)
102
TABLE 17
(1)
(1)(1)Personal (1)(2)(3)
Calendar Estimated Personal Income Median School Unemployment
Year Population Income Per Capita Age Enrollment Rate
2011 47 1,692$ 36$ 35 14 6.3%
2012 48 1,711 36 35 14 5.6%
2013 49 1,862 38 38 14 5.1%
2014 49 1,911 39 38 14 4.7%
2015 49 2,058 42 39 14 3.3%
2016 50 2,197 42 39 14 3.6%
2017 51 2,252 44 39 14 3.4%
2018 52 2,249 44 39 14 3.3%
2019 53 2,303 45 39 14 3.0%
2020 54 2,515 47 38 14 6.3%
Sources:(1)Estimate from City Economic Development Dept staff; Neilsen/Clarita's Report
(2)Grapevine/Colleyville ISD
(3)ESRI
CITY OF GRAPEVINE, TEXAS
Median Age and Unemployment Rate)
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
(Unaudited) (Amounts Expressed in Thousands except for
103
TABLE 18
Percentage of Percentage of
of Total City of Total City
Employer Employees Employment (1)Employer Employees Employment
DFW International Airport 14.3 26.58%DFW International Airport 16.0 39.15%
Gaylord Texan Resort and
Convention Center 2.0 3.72%Gaylord Texan Resort
and Convention Center 2.0 4.89%
Grapevine/Colleyville ISD 1.9 3.53%Grapevine/Colleyville ISD 1.6 3.92%
City of Grapevine 0.7 1.30%United Parcel Service 1.0 2.45%
Great Wolf Lodge 0.6 1.12%Baylor Medical Center 1.0 2.46%
Kubota Tractor Corp 0.5 0.93%Game Stop 1.0 2.45%
Pavestone Co 0.4 0.74%City of Grapevine 0.5 1.22%
American Warranty Svc 0.3 0.56%Great Wolf Lodge 0.5 1.22%
Bfvt Motors Inc 0.3 0.56%Hilton DFW 0.3 0.73%
Classic Chevrolet Grapevine 0.3 0.56%Wal-Mart/Sams (250-500)0.3 0.73%
21.3 39.58%24.2 59.22%
Total Employees 2020: 53,809
Sources: City of Grapevine Economic Development Department, Infogroup, Inc
CITY OF GRAPEVINE, TEXAS
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2020
(Unaudited) (Amounts Expressed in Thousands except for
2011
Percentage of Total City Employment)
104
Function/Program 2011 2012 2013 2014 2015 2016 2017
General government
and administration 56 54 55 55 60 60 60
Public safety 234 234 237 238 240 240 252
Development services 15 15 15 15 15 15 15
Culture and recreational 105 106 111 114 126 132 135
Water and sewer 59 59 59 60 59 59 59
Golf course 19 19 19 19 20 19 19
Public works 60 60 61 61 61 61 62
Total 547 546 556 562 581 586 602
Source: Human Resources Department
CITY OF GRAPEVINE, TEXAS
FULLTIME EQUIVALENT CITY GOVERNMENT EMPLOYEES
BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Whole Numbers)
105
TABLE 19
2018 2019 2020
59 58 58
253 252 253
15 15 15
135 136 141
59 59 59
19 19 19
62 62 62
602 601 607
106
2011 2012 2013 2014 2015
General Government
City Secretary
Ordinances prepared 67 68 61 74 72
Resolutions prepared 70 97 114 89 92
Fiscal Services
Invoices processed 21,605 18,567 18,719 17,410 17,556
Ratio of ACH/checks 0.02 1.06 27.48 47.50 49.60
Public safety
Police
Calls for service 66,686 67,634 58,680 44,266 53,372
Traffic citations 18,995 23,817 21,447 24,441 19,138
Criminal offenses 3,346 1,366 3,219 2,948 2,743
Fire
Fire runs 5,079 5,135 5,156 5,101 5,588
Ambulance runs 3,343 3,026 3,541 3,614 3,715
Municipal Court
Cases filed 21,828 25,860 23,855 24,298 19,012
Cultural and recreational
Parks & Recreation
Recreation center membership-family 4,937 4,658 4,677 2,731 9,856
Recreation center membership-individual 2,923 2,861 2,852 2,502 5,227
Athletic league registrants- youth 4,750 7,014 6,126 6,250 5,324
Athletic league registrants- adult 9,500 10,536 9,588 9,248 7,720
Public swim attendance 31,744 38,274 48,680 46,120 75,245
% Campground occupancy rate 57.00 61.00 63.00 61.00 53.00
Total acres maintained 1,662 1,662 1,662 1,662 1,677
Library
Volumes 205,194 186,817 197,377 204,206 252,227
Annual circulation 330,975 316,236 303,622 293,434 301,522
Note:
1 Starting in FY 20, all memberships are individual memberships.
Source: City Departments
Function/Program
Fiscal Year
CITY OF GRAPEVINE, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Whole Numbers)
107
TABLE 20
2016 2017 2018 2019 2020
90 84 88 87 70
106 106 100 35 21
19,098 18,944 17,075 16,690 16,586
53.60 58.80 57.10 55.73 53.30
52,613 47,751 43,402 41,059 39,006
14,566 13,269 11,705 13,574 6,736
2,812 2,740 2,570 2,664 4,658
5,905 6,161 6,026 6,192 1,832
4,893 4,432 4,047 4,291 4,008
16,398 15,578 14,088 13,574 8,275
11,512 12,126 12,273 9,969 N/A 1
4,660 5,687 4,748 4,046 12,869 1
6,860 1,450 1,500 3,472 3,200
7,370 5,746 5,092 1,863 1,900
101,774 106,359 98,192 92,436 92,436
13.83 70.99 71.65 41.81 56.20
1,677 1,677 1,740 1,556 2,635
259,203 234,546 230,284 274,810 279,817
307,662 345,429 342,303 355,594 343,714
Fiscal Year
108
2011 2012 2013 2014 2015Function/Program
Fiscal Year
CITY OF GRAPEVINE, TEXAS
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Whole Numbers)
Public works
Development services
Permits issued 4,121 3,982 3,877 4,500 4,139
Streets
Square yard of overlay completed 99,000 92,604 53,167 75,555 82,202
Linear feet of gutter wedge milled 17,500 15,123 72,713 45,792 43,359
Linear feet of curb and gutter replaced 1,600 4,015 3,969 944 300
Number of blocks crack sealed 210 205 257 174 133
Square feet of concrete rehab 4,000 39,002 47,813 96,068 15,706
Tourism
Convention and visitor bureau
Nash farm attendance - 7,158 8,468 13,500 14,588
Main street days attendance 160,990 150,292 139,770 148,260 154,032
Grapefest attendance 243,180 262,322 262,910 266,170 263,832
Water and sewer
Number of water connections 14,384 14,460 14,517 14,476 14,564
Average daily consumption MG (water)11.98 10.74 10.40 9.35 9.40
System capacity - MG (Water)27 27 27 27 27
Number of sewer connections 13,081 13,103 13,315 13,387 13,452
Number of refuse customers 11,895 11,911 11,964 12,110 12,175
Sewer system capacity (MGD)8 8 8 8 8
Lake Enterprise
Numbers of golfers, annually 65,052 67,555 71,706 68,368 48,689
Note:
2 The COVID-19 pandemic forced the cancellation of these events.
Source: City Departments
109
TABLE 20
2016 2017 2018 2019 2020
Fiscal Year
4,340 4,369 4,501 4,410 4,306
98,693 79,238 66,432 61,957 62,200
50,034 48,404 37,540 27,972 37,564
3,926 1,605 3,812 4,187 7,602
179 149 174 117 175
28,735 49,069 27,112 47,708 70,523
11,566 14,868 11,759 15,085 11,210
178,672 169,560 168,480 141,570 - 2
260,151 268,180 260,001 261,000 - 2
14,665 14,732 14,788 14,869 14,887
9.30 9.21 9.45 7.75 8.55
27 27 27 27 27
13,570 13,632 13,696 13,766 13,797
12,272 12,318 12,394 12,416 12,446
8 8 8 8 8
55,913 64,424 64,382 62,510 63,815
110
Function/Program 2011 2012 2013 2014 2015 2016
Police
Stations 2 2 2 2 2 2
Patrol units 32 32 35 35 35 35
Motorcycle Units 10 8 8 8 8 8
Fire
Stations 5 5 5 5 5 5
Fire engines/trucks 9 9 10 10 10 10
EMS trucks 4 4 5 5 5 5
Public works
Streets - paved (miles)208 208 208 208 208 208
Traffic signals 75 75 75 75 75 75
Parks and recreation
Acreage*1,662 1,662 1,662 1,522 1,677 1,677
Playgrounds 35 35 36 37 37 37
Swimming pools 2 2 2 2 3 3
Splash parks - 2 2 2 2 2
Tennis courts 8 8 8 8 8 8
Recreation centers 1 1 1 1 1 1
Senior centers 1 1 1 1 1 1
Libraries 1 1 1 1 1 1
Golf Courses 1 1 1 1 1 1
Water
Water mains (miles)280 280 290 292 293 295
Wastewater
Sanitary sewers (miles)221 221 224 225 226 228
Source: City departments
*Golf course included and land leased from Corp. of Engineers
CITY OF GRAPEVINE, TEXAS
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(Unaudited) (Amounts Expressed in Whole Numbers)
Fiscal Year
111
TABLE 21
2017 2018 2019 2020
2 2 2 2
35 35 37 34
8 8 8 8
5 5 5 5
10 10 10 11
5 5 5 5.
208 211 211 212
75 76 76 78
1,677 1,556 1,556 2,635
37 32 36 36
3 3 3 3
2 3 3 3
8 8 8 12
1 1 1 1
1 1 1 1
1 1 1 1
1 1 1 1
295 300 305 306
228 226 227 228
Fiscal Year
112