Page 29 - Honorable Mayor and Members of the City Council

financed without significantly altering the City's annual debt service requirements and without increasing the property
tax rate. With the financial advisor's guidance, bonds are typically scheduled for sale in alternate years to allow
commercial development and property values to increase assessed valuations to the level necessary to maintain or
even lower property tax rates. At the time that the 2018-19 Budget was adopted by the City Council, no bond sales
were planned or projected for 2018-19.

The sale of certificates of obligation in 2005 to finance the Tax Increment Financing (TIF) projects impacted the Debt
Service Fund Budget in 2005-06, 2006-07, and 2007-08. These principal and interest payments are scheduled for
payment in the TIF Fund in the 2018-19 Budget and in future years. In 2012, the City of Benbrook sold $1,280,000 in
certificates of obligation for TIF projects; these costs are included in the TIF Fund for 2017-18 and future years.
Certificates of obligation were sold for TIF projects in 2014; these costs are included in the TIF Fund for 2018-19 and
future years.

The sale of certificates of obligation in September 2007 was timed to allow for the payment of these expenses to be
financed through the Stormwater Utility fees that were implemented October 1, 2007; the costs of these certificates
have no impact on the General Fund or Debt Service Fund since they are to be paid through special use revenue and
not with property taxes.

Bank of America proposed revising the City’s Series 2005 General Obligation Bonds from a 3.49% rate to a 1.85% rate
effective February 1, 2015. The offer was reviewed by the City’s financial advisor, recommended by City Staff, and
approved by City Council. Significant savings are projected for interest payments for 2017-18 until the bonds are
retired in 2019-20.

For the 2018-19 fiscal year, the City’s total tax rate remains at $0.6400. The General Fund portion of the property tax
rate was reduced by one-half cent from $0.6125 to $0.6075. The Debt Service Fund portion of the property tax rate was
adjusted by one-half cent from $0.0275 to $0.0325.

CITY OF BENBROOK 2018-19 ANNUAL BUDGET
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