Page 21 - Benbrook FY20 Approved Budget

CITY OF BENBROOK 2019-20 ANNUAL BUDGET

Service Fund) revenues total $21,460,490. General Fund revenues total $20,973,383 and Debt Service Fund revenues total $487,107. The
transfer of $586,752 is scheduled from the Stormwater Utility Fund to the Debt Service Fund and a transfer of $503,136 from the TIF Fund
to the Debt Service Fund. The transfer of $650,000 is scheduled for transfer from General Fund to the Capital Projects Fund for the Clearfork
Emergency Access Bridge, $250,000 to the newly created Wall Repair Fund, and $250,000 to the Capital Asset Replacement Fund. The
transfer of $100,000 is scheduled from the Road Damage Fund to the General Fund to finance street repairs for roadways damaged by
natural gas utility truck traffic. No reserves were required to balance the Budget.

USE OF RESERVES

For the 2019-20 Budget, the Benbrook City Council established $8,000,000 as the ideal minimum reserve total for the combined operating
funds (General Fund and Debt Service Fund). In 2019-20, the Council expects to meet this challenge and still be able to increase employee
benefits, enhance services to the public, and maintain or lower the current property tax rate - without significantly impacting the City's superb
financial condition. The Operating Funds Budget for 2019-20 does not include the use of General Fund reserves; the Operating Funds fund
balance is projected to increase from $8,664,974 to $8,731,684.

The 2019-20 Budget reflects the use of $1,150,000 from General Fund. The City philosophy is to save for future projects by making transfers
from the General Fund to the Capital Projects funds each year. The General Fund budget is balanced with these transfers in mind. The transfer
of $650,000 is scheduled from the General Fund to the Capital Projects Fund for the construction of the Clearfork Emergency Access Bridge,
$250,000 to the Wall Fund for future wall repairs, and $250,000 to the Capital Asset Replacement Fund to purchase capital outlay items in
the current year and in the future. General Fund revenues, excluding transfers, are projected to exceed expenditures by approximately
$1,101,139. By using $1,150,000 in unrestricted fund balance and transferring $100,000 from the Road Damage Fund, the fund balance
of the General Fund is projected to increase from $8,335,527 to $8,386,666 by the end of 2019-20.

The 2019-20 Budget does not include the use of Debt Service Fund reserves to finance principal and interest payments for General Obligation
bonds. For this fiscal year, an estimated $15,571 will be added to Debt Service Fund reserves. The fund balance of the Debt Service Fund
is projected to increase from $329,447 to $345,018. Reserves are restricted; the only allowable use is to pay principal on general obligation
bonds and certificates of obligation bonds, interest on bonds and certificates, and agent fees.

DECREASING OF THE PROPERTY TAX RATE

The City’s property tax rate is always a focus of the budget. After reviewing the change in assessed valuations and considering potential
commercial development in the upcoming years, Council established the property tax rate at $0.62777 per $100 valuation. The 2019-20
rate is $0.01223 lower than the 2018-19 adopted rate of $0.6400. The General Fund portion of the property tax rate was reduced by
$0.00103 from $0.60750 to $0.60647. The Debt Service Fund portion of the property tax rate was lowered by $0.0112 from $0.0325
to $0.0213.
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