Page 101 - Benbrook FY20 Approved Budget

CITY OF BENBROOK 2019-20 ANNUAL BUDGET

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 included in the Long-Range Financial Forecast; however, these bonds are to be
financed through a transfer from 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 included in the
Debt Service Fund; however, this debt is financed through a transfer from the TIF for current and future forecast years.

11) Transfers and the use of unappropriated reserves are reflected in 2019-20 in the amount of $1,150,000 from the General Fund.
Funds in the amount of $250,000 are scheduled for transfer from General Fund reserves to the Capital Asset Replacement Fund. The
Budget also includes the transfer of $650,000 in General Fund reserves to the Capital Projects Fund for the Clearfork Emergency
Access Bridge. Also, a $250,000 transfer to the newly created Wall Repair Fund will be made in 2019-20. 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 a property tax rate at or below the rollback
rate 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 budget. In any of the forecast years, the City may have the flexibility to decrease the property tax rate, enhance
services, issue additional debt, or provide a combination of the three depending upon the economic conditions and political climate at that
time. Of course, one adjustment in revenues, expenditures, or a combination of the two impacts that year as well as all future years of the
long-range financial forecast.

Expenditure projections included within the forecast do not reflect any service enhancements (additional employees, new equipment, or
program changes). The projections do include the replacement of existing equipment based on past equipment replacement practices. Five
police vehicles are scheduled for replacement in each of the forecast years. The projects also include funds for the street overlay and street
rebuilding programs for each year of the forecast.

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