Page 79 - Honorable Mayor and Members of the City Council

CAPITAL OUTLAY

The purchase of capital outlay equipment in 2018-19 in the amount of $188,850 is $18,930 more than the $169,920 re-
estimate for 2017-18. Funds for both fiscal years are for replacement of Police Department vehicles. Funds are also
included in the 2018-19 Budget to replace one signal cabinet. A capital outlay is defined as an item or piece of
equipment that costs a minimum of $5,000, has a useful life in excess of one year, and/or is recorded as a fixed asset
on the City's official inventory.

DEBT SERVICE

Debt service requirements increase by $16,664 from $957,076 in 2017-18 to $973,740 in 2018-19. Principal payments
increase by $35,000 in 2018-19 to $870,000 from $835,000 in 2017-18; interest expenses decrease by $18,336 from
$118,276 in 2017-18 to $99,940 in 2018-19. Agent fees remain at $3,800.

TRANSFERS AND USE OF UNAPPROPRIATED RESERVES

The 2018-19 Budget and the 2017-18 re-estimate include the transfer of reserves from the General Fund to the Capital
Asset Replacement Fund; these funds are designated for the purchase of major pieces of equipment in future years.
The 2017-18 transfer was $500,000; the 2018-19 transfer is $500,000.

The 2017-18 re-estimate includes the transfer of $1,000,000 from General Fund reserves to the Animal Shelter Account
of the Capital Projects Fund for a shelter and for construction costs. The 2018-19 Budget does not include the transfer
of funds from General Fund reserves to this fund.

The 2017-18 Budget reflected the establishment of a Capital Facilities Fund to set aside General Fund reserves to
finance building and facility improvements and repairs in 2017-18 and in future years. The source for the first-year of
funding was $500,000 from unallocated General Fund reserves. Projects completed for 2017-18 included: an evaluation
of City Hall and the Police Department, replacement of the rubber tile for the playground at Castle Park, replacement
of generator for Police Department, air conditioning unit for the Senior Citizens Center, and a new Monument Sign for
Benbrook City Hall. The 2018-19 Budget includes funding to replace and upgrade the jail door operations system.

The 2018-19 Budget includes the use of $920,000 in General Fund reserves for the purchase of an updated and
upgraded communications system for the Fire Department.

CITY OF BENBROOK 2018-19 ANNUAL BUDGET
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