Page 106 - Honorable Mayor and Members of the City Council

DEBT SERVICE

The 2018-19 Budget includes Debt Service expenditures of $973,740. These costs are $16,664 over than the 2017-18
re-estimate of $957,076. Principal expenses for general obligation bonds for 2018-19 are $870,000; this total is $35,000
more than the 2017-18 re-estimate of $835,000. Interest expenses for general obligation bonds for 2018-19 are $99,940
for a net decrease of $18,336 compared to the 2017-18 re-estimate of $118,276. Fiscal charges for 2017-18 and for 2018-
19 are $3,800.

Bank of America proposed revising the City’s Series 2005 General Obligation Bonds from a 3.49% rate to a 1.85% rate
effective February 1, 2015. The offer was reviewed by the City’s financial advisor, recommended by City Staff, and
approved by City Council. Significant savings are projected for interest payments for 2018-19 until the bonds are
retired in 2019-20.

In November 2013, the City re-financed general obligation bonds. This transaction results in lower interest payments
for 2018-19 and for future years.

The City issued certificates of obligation in the summer of 2007; however, this debt has no financial impact on the Debt
Service Fund; these expenses are financed through the Stormwater Utility Fund.

In 2005, the City issued $2,500,000 in certificates of obligation to finance projects and expenses related to the Tax
Increment Financing (TIF) District. In 2012, the City of Benbrook sold $1,280,000 in certificates of obligation for TIF
projects; these costs are included in the TIF Fund for 2016-17 and future years. The TIF is required to repay these
expenses to the City when funds are available. In June 2014, the City issued certificates of obligation for the TIF. No
payments for principal or interest are included in the 2017-18 Debt Service Fund Budget for these certificates of
obligation. These expenses are funded through the TIF Fund.

CITY OF BENBROOK 2018-19 ANNUAL BUDGET
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