Page 25 - Benbrook FY20 Approved Budget

CITY OF BENBROOK 2019-20 ANNUAL BUDGET

valuations to the level necessary to maintain or even lower property tax rates. At the time that the 2019-20 Budget was adopted by the City
Council, no bond sales were planned or projected for 2019-20.

The sale of certificates of obligation in 2005 to finance the Tax Increment Financing (TIF) projects impacted the Debt Service Fund Budget in
2005-06, 2006-07, and 2007-08. These principal and interest payments are scheduled for payment by the TIF Fund in the 2019-20 Budget
and in future years. In 2012, the City of Benbrook sold $1,280,000 in certificates of obligation for TIF projects; these costs are included in
the TIF Fund for 2019-20 and future years. Certificates of obligation were sold for TIF projects in 2014; these costs are included in the TIF
Fund for 2019-20 and future years. The bonds will be retired in 2021-22.

The sale of certificates of obligation in September 2007 was timed to allow for the payment of these expenses to be financed through the
Stormwater Utility fees that were implemented October 1, 2007; the costs of these certificates have no impact on the General Fund or Debt
Service Fund since they are to be paid through special use revenue and not with property taxes.

Bank of America proposed revising the City’s Series 2005 General Obligation Bonds from a 3.49% rate to a 1.85% rate effective February
1, 2015. The offer was reviewed by the City’s financial advisor, recommended by City Staff, and approved by City Council. Significant
savings have occurred for interest payments. The bonds are retired in 2019-20.

For the 2019-20 fiscal year, the City’s total tax rate was reduced from $0.64000 to $0.62777 due to a reduction in the rollback tax rate.
The General Fund portion of the property tax rate was reduced from $0.6075 to $0.60647. The Debt Service Fund portion of the property
tax rate was also reduced from $0.0325 to $0.0213.

CONCLUSIONS

As always, the preparation and adoption of the Budget is one of the most important actions of the Benbrook City Council. The budgetary
process determines what services the City provides, the level of services, and how the funds are provided to finance these services. The Budget
is a compromise between available resources and service needs - a compromise that attempts to allocate funds on a priority basis as
determined by the City Council. The Budget, administered with the proper controls, represents a reliable financial plan to be used in making
decisions facing the City of Benbrook over the course of the next twelve months.

The City Manager and the City Staff stand ready to assist the City Council in implementing the 2019-20 Budget.

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