Page 111 - Honorable Mayor and Members of the City Council

FORECAST ASSUMPTIONS

REVENUE ASSUMPTIONS

The General Fund and Debt Service Fund revenues are projected by using the following methods: the 2017-18 Budget
is adjusted annually, according to the projected rates of inflation for each year, expert judgment is used to project the
line item revenues, and the 2018-19 Budget is adjusted to correspond with projected increases in the City's population.
All revenue projections are based on the current fee structures. Any changes in fee structures could dramatically affect
the outcome of the financial forecast.

Property Tax Collections

Property tax collections are projected using the following assumptions and methodology:
1) The net taxable value for 2018-19 is furnished by the Tarrant Appraisal District (TAD).

2) The net taxable value for 2019-20 is computed by using the value of building permits issued in 2017-18.

3) The net taxable value for 2020-21 is calculated using the estimated value of building permit collections in the
2018-19 Budget.

4) The net taxable values for 2021-22, 2022-23, and 2023-24 are obtained using estimates based on current building
levels.

5) TAD re-appraises property within Benbrook every two years. Increases in property values are based on the
projected inflation rate.

6) New exemptions are computed by using the current ratio of assessed valuations to total exemptions.

7) The property tax collection rate remains at 99.00 percent (98.00 percent for current tax collections and 1.00
percent for delinquent collections) of the tax levy for future years of the forecast period; an exception was made
for the 2018-19 calculation since 100.00 percent was used.

8) Penalty and interest on delinquent collections is held at a constant percentage of the total delinquent tax roll.

CITY OF BENBROOK 2018-19 ANNUAL BUDGET
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