Page 115 - Honorable Mayor and Members of the City Council

balances may be artificially reduced. The City applies a second expenditure forecasting method of using per capita
expenditures applied to the projected population estimates. The major drawback to this approach is using past trends,
that may or may not be reliable, to predict the future. This methodology does produce relatively consistent
computations, in that the City's per capita spending has remained constant over the past ten years. When either of
these two methods does produce numbers that are inconsistent with the forecast, the City Staff uses expert judgment
to establish projected expenditure levels.

The forecast is predicated on the following expenditure assumptions for the General Fund:

1) City services, programs, and the number of employees remain at the level presented in the 2018-19 Budget.

2) Increases in salary are computed on cost-of-living adjustments based on the projected increase in the
employment cost index and consumer price index.

3) Costs of insurance (health, dental, life, workers' compensation, and unemployment) premiums increase at rates
similar to those experienced over the past ten years; the 2018-19 total includes funds for an up-to seven and
one-half percent increase

4) TMRS costs for future years of the forecast reflect increased contribution rates due to additional retirees as the
City's work force ages.

5) Costs of other fringe benefits (FICA, overtime, stability/longevity pay, and incentive pay) increase at the projected
rate of salary adjustments.

6) The volume of supplies and materials remains at the same level of use; costs increase at the projected level of
inflation.

7) Contractual services increase in costs depending on assorted inflation factors, utilities increase based on
historical trends, fuel costs increase based on wholesale prices of gasoline and diesel, and other contractual
services increase based on inflation.

8) Repair and maintenance costs increase based on historical trends and inflation.

9) Capital outlay funds to replace five Police vehicles (through the General Fund) are included in each of the forecast
CITY OF BENBROOK 2018-19 ANNUAL BUDGET
114