Page 24 - Benbrook FY20 Approved Budget

CITY OF BENBROOK 2019-20 ANNUAL BUDGET

transport of natural gas equipment and vehicles. Also, a transfer of $650,000 from the General Fund to the Capital Projects Fund will be
made for the construction of the Clearfork Emergency Access Bridge.

IMPACT OF THE 2019-20 BUDGET ON BENBROOK’S FUTURE

OPERATING FUNDS

The Operating Funds began the 2019-20 year with a fund balance of $8,664,974. The Operating Funds are projected to end the new
fiscal year with a fund balance of $8,731,684 based on revenues in the amount of $21,460,490; expenditures in the amount of $21,433,668;
the transfer of $100,000 from the Road Damage Fund; the transfer of $586,752 from the Stormwater Utility Fund; a transfer of $503,136
from the TIF Fund; and transfers of $250,000 to the new Wall Repair Fund and $250,000 to the Asset Replacement Fund; along with
$650,000 from the General Fund for the Clearfork Emergency Access Bridge.

Financial experts and bond rating agencies recommend that the fund balance or reserves be maintained at a minimum level equivalent to ten
percent of the City's annual operating budget; three months of operating expenses is the preferred level. Reserves are projected to be 38.7
percent of total operating expenditures during 2019-20. This level of reserves is more than sufficient to meet established criteria. The City's
informal policy of maintaining reserves at $8,000,000 and at a minimum of three months of operating expenses is also more than satisfied.
Benbrook is more than prepared to face and to conquer economic and financial challenges in the current year and in future years.

GENERAL FUND

The City Staff is confident that the City's current financial position allows Benbrook to grow, to improve infrastructure, to enhance community
facilities, and to upgrade existing facilities and services. However, due to the uncertain economy in 2019-20 and the future reduction in the
rollback rate in 2020-21 due to the passage of Texas Senate Bill 2, Council and Staff decided to defer General Fund financing of any major
new programs and service enhancements. The 2019-20 General Fund Budget is primarily a continuation of current services and programs
with a few critically-needed enhancements.

DEBT SERVICE FUND

Debt service principal and interest payments reflected in the 2019-20 Debt Service Fund Budget include general obligation payments that
are financed through current property tax collections, along with payments for Stormwater Utility and TIF debt. The Stormwater Utility and
TIF debt payments are paid for by the Stormwater Utility and TIF Funds.

City Staff works closely with the City's financial advisor to ensure that the additional debt service requirements are 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
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