Page 108 - Honorable Mayor and Members of the City Council

LONG-RANGE FINANCIAL FORECAST

BACKGROUND OF FINANCIAL FORECASTING IN BENBROOK

Benbrook initiated the City's long-range financial forecasting process in 1979 in conjunction with the first of several
bond issues. The first long-range financial forecast provided comprehensive General Fund revenue and expenditure
projections, but did not analyze the financial condition of the City's other funds. Subsequent forecasts were expanded
to include the City's Debt Service Fund. The current forecast includes the General Fund and the Debt Service Fund.
Capital Projects Funds (Capital Improvement Projects, Special Assessment, Capital Asset Replacement, and Animal
Shelter) are not addressed in the City's forecast since repayment of bonds takes place through the City's Debt Service
Fund. Grant Funds and Other Funds (TIF, Core Value, Stormwater Utility, Police Narcotics, HMOT, and EDC) are not
reflected in the Long-Range Financial Forecast. A separate Capital Improvements Report, required by City Charter to
be issued in December of each year, addresses possible Capital Projects Fund expenditures. All of these documents
stress the need for long-range financial planning and each document is used as a tool in planning the budget.

The forecast included in the 2018-19 Budget follows the basic pattern of the previous forecasts. Some sections have
been expanded or revised to include the most pertinent and recent information. The current forecast has been
prepared to provide the following six benefits to City leaders:

1) The forecast can be used by the City Council in orchestrating policy decisions with long-term implications.

2) The long-range forecast can serve as an aid to both elected and administrative officials in anticipating future
fiscal problems, so that strategies can be developed and action implemented as soon as possible to correct or
counteract these potential difficulties.

3) The financial forecast can assist the City Manager as well as City departments in operational planning.

4) The forecast can result in more accurate estimates of revenues and expenditures during the budget process.

5) The forecast can indicate to the bond rating agencies and other interested parties that Benbrook does have a
systematic financial planning process in place.

CITY OF BENBROOK 2018-19 ANNUAL BUDGET
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