Page 57 - Benbrook FY20 Approved Budget
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CITY OF BENBROOK 2019-20 ANNUAL BUDGET
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 are projected for interest payments for 2016-17 until the bonds are retired in 2019-20.
Under current Texas statutes, the City has no legal limit on bonded debt. State statutes do, however, limit the total amount of ad valorem
taxes the City can impose. This limit is $2.50 per $100 of assessed valuation The City's current total tax rate of $0.6400 (for both the
General Fund and the Debt Service Fund) and the tax rate for retirement of debt service of $0.0325 are considerably below this limit.
Debt Service expenses financed through property tax revenue total $983,795 in 2019-20. Included in this total is $895,000 for general
obligation bond principal retirements, $84,995 for general obligation bond interest expenses, and $3,800 for agent fees.
No additional debt is scheduled for issuance in 2019-20.
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