Page 333 - Honorable Mayor and Members of the City Council

BENBROOK HISTORICAL BACKGROUND

2004

In 2004, Benbrook voters approved the sale of bonds for drainage projects and for the acquisition of land for a fire sub-
station in the Whitestone area of Benbrook; voters denied funding to street improvement projects and for parks
improvements. After negotiations were completed to purchase the property for the fire sub-station, Council approved
the use of reserve funds instead of issuing bonds. Bonds were sold in May 2004 to finance the drainage projects. The
City Council passed an ordinance in 2004 to freeze assessed valuation amounts for citizens who are over-65 and/or are
handicapped; this action was not expected to impact the City’s financial operations until 2005-06; when the freeze did
become effective, greater-than-anticipated growth through development and increased property values significantly
diminished the impact of the freeze. Three of the four City Councilmembers who voted to approve this ordinance were
the subject of a recall election held on September 11, 2004; voters turned out in a record number to insure that all three
City Councilmembers retained their seats.

2005

In 2005, the Benbrook Council approved the issuance of $2,500,000 in certificates of obligation to provide funds for Tax
Increment Financing (TIF) projects. These debt service payments are to be assumed by the TIF and re-paid to the City
of Benbrook when the TIF is financially able to make these payments. During this certificate of obligation issuance
process, the City’s bond counsel advised the City to consider re-financing existing outstanding general obligation
bonds; the City agreed to complete this process and realize savings of over $20,000 for 2005-06 and for future years.
TIF projects include: the Interstate 20 Ramp Location that was completed in the summer of 2006, the Walnut Creek
Sewer Line, and the Benbrook Town Crossing project.

In the fall of 2005, the City solicited proposals for gas lease and drilling rights on City property (including Whitestone
Golf Course). The City owns approximately 211 acres of land with mineral rights in the Whitestone Ranch area. The
land includes Whitestone Golf Course, two undeveloped park sites, and the fire station site. Chesapeake Energy
Corporation’s proposal reflected a royalty agreement of twenty-five percent plus a bonus of $5,700 per acre; the total
bonus was approximately $1,207,260. With the receipt of this unexpected windfall, the Council decided to examine
financial goals and to institute specific objectives and restrictions for the natural gas and oil lease proceeds.

CITY OF BENBROOK 2018-19 ANNUAL BUDGET
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