Page 58 - Benbrook FY20 Approved Budget

CITY OF BENBROOK 2019-20 ANNUAL BUDGET

OPERATING FUNDS BUDGET PROPOSAL

The 2019-20 Budget adequately provides for meeting the operational demands of the City. Operating Fund expenditures, transfers, and
use of reserves for 2019-20 in the amount of $22,583,668 are $916,993 more than expenditures and transfers re-estimated for 2018-19
in the amount of $21,666,675. The 2018-19 re-estimate includes $1,884,804 in transfers from General Fund reserves; the 2019-20 Budget
includes the transfer of $1,150,000 in reserves.

SALARY ADJUSTMENT AND FRINGE BENEFIT INCREASES

COST-OF-LIVING INCREASE

The 2019-20 Budget includes funds for a two and one-half percent across-the-board cost-of-living adjustment for all full-time employees.

MERIT INCREASES FOR ELIGIBLE EMPLOYEES

Employees who are at steps one through six are eligible for a five-percent or one-step merit increase on the employee’s anniversary date.
Merit increases are based on job performance and are implemented following an evaluation by the employee's supervisor; funds for merit
increases are included in the 2019-20 Budget.

SIGNING BONUS FOR CERTIFIED POLICE OFFICERS

The Police Department requested and received $10,000 in the 2018-19 Budget for payment of a $5,000 bonus for new Police Officers who
hold the required certifications when hired by the City of Benbrook. The funding of this hiring-incentive program is again in the 2019-20
Budget for the amount of $5,000.

FRINGE BENEFIT ENHANCEMENTS

The 2019-20 Budget includes funds to finance an up-to twenty percent increase in employee health, dental, and life insurance premiums,
subsidies, and reimbursements. Through negotiations with the City’s current providers for group health, dental, and life insurance for renewals
effective November 1, 2019, the City expects to continue funding the entire employee premium; to adjust the subsidy for dependent health
insurance to cover the increase in these costs; and to enhance the reimbursement program for out-patient procedure, surgery, and
hospitalization co-payments.

All full-time employees contribute seven percent of salary to the Texas Municipal Retirement System (TMRS). The City matches these
contributions on a two-to-one basis. TMRS informed the City that the City’s rate is scheduled to increase from the current rate of 16.32 percent
to 16.59 percent on January 1, 2020.

58 | P a g e