Page 116 - Honorable Mayor and Members of the City Council

years; costs increase according to projected inflation levels.

10) Debt Service costs reflect current obligations including: general obligation debt issues approved by Benbrook’s
voters, general obligation bonds issued in 2002 and re-financed in 2011, general obligation bonds issued in 2004
and re-financed in 2013, and refinancing of debt for issues prior to 2005. Debt Service expenses reflect current
obligations and include bonds sold as of October 1, 2017. Certificates of Obligation sold in 2007 are not included
in the Long Range Financial Forecast; these bonds are to be financed through the City’s Stormwater Utility fees
and not through ad valorem taxes collected for the General and Debt Service Funds. Certificates of obligation
approved by Council in 2005, 2012, and 2014 for TIF expenses are not included in the Debt Service Fund; this
debt is financed through the TIF for current and future forecast years.

11) Transfers and the use of unappropriated reserves are reflected in 2018-19 in the amount of $750,000 for General
Fund reserves and $920,000 for the use of reserves. Funds in the amount of $500,000 are scheduled for transfer
from General Fund reserves to the Capital Asset Replacement Fund. The Budget also includes the transfer of
$250,000 in General Fund reserves to the Capital Facilities Fund. The procurement of an upgraded and updated
communications system for the Fire Department is scheduled through the use of reserves in 2018-19. Since
these transfers require approval by the City Council during the budget review and approval process, similar
transfers are not projected in future forecast years. Transfers are to be determined each year.

DEBT SERVICE FUNDS

Projections for the Debt Service Fund expenditures are based on current debt requirements. The forecast does not
project any additional bond issues over the tenure of the forecast period. The amount of the debt requirements is the
actual amount due based on the information provided by the City's financial advisor. Tables are included in the Debt
Service Fund that summarize principal and interest requirements for all debt issued and for each issue of general
obligation bonds, certificates of obligation.

FORECAST RESULTS

Based on the current estimates of revenues and expenditures, the City should be able to maintain the property tax rate
at the current rate of $0.6400 per $100 valuation throughout the forecast period. Without an increase in the property
tax rate, the City can continue services at current levels without any adjustments in staffing levels. Reserves can be
maintained above the recommended level of $8,000,000 and three months of operating expenses for the operating

CITY OF BENBROOK 2018-19 ANNUAL BUDGET
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