Page 28 - Honorable Mayor and Members of the City Council

IMPACT OF THE 2018-19 BUDGET ON BENBROOK’S FUTURE

OPERATING FUNDS

The Operating Funds began the 2018-19 year with a fund balance of $8,957,555. The Operating Funds are projected to
end the current fiscal year with a fund balance of $8,404,938 based on revenues in the amount of $20,820,558;
expenditures in the amount of $20,307,919; the transfer of $100,000 from the Road Damage Fund; the transfer of
$504,744 from the Stormwater Utility Fund; and transfers of $500,000 to the Capital Asset Replacement Fund and
$250,000 to the Capital Facilities Account; and the use of $920,000 in General Fund reserves.

Financial experts and bond rating agencies recommend that the fund balance or reserves be maintained at a minimum
level equivalent to ten percent of the City's annual operating budget; three months of operating expenses is the
preferred level. Reserves are projected to be 41.37 percent of total operating expenditures during 2018-19. This level
of reserves is more than sufficient to meet established criteria. The City's informal policy of maintaining reserves at
$8,000,000 and at a minimum of three months of operating expenses is also more than satisfied. Benbrook is more
than prepared to face and to conquer economic and financial challenges in the current year and in future years.

GENERAL FUND

The City Staff is confident that the City's current financial position allows Benbrook to grow, to improve infrastructure,
to enhance community facilities, and to upgrade existing facilities and services. However, due to the uncertain
economy in 2018-19, Council and Staff decided to defer General Fund financing of any major new programs and service
enhancements. The 2018-19 General Fund Budget is primarily a continuation of current services and programs with a
few critically-needed enhancements.

DEBT SERVICE FUND

Debt service principal and interest payments reflected in the 2018-19 Debt Service Fund Budget include only general
obligation payments that are financed through current property tax collections. These debt service issues include
general obligation bonds issued in 2002 and refinanced in 2011, bonds issued in 2004 and refinanced in 2013, and
general obligation bonds issued in 2005.

City Staff works closely with the City's financial advisor to insure that the additional debt service requirements are

CITY OF BENBROOK 2018-19 ANNUAL BUDGET
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