Page 71 - Benbrook FY20 Approved Budget

CITY OF BENBROOK 2019-20 ANNUAL BUDGET

PROPERTY TAX REVENUE

The 2019-20 Budget ad valorem tax revenue projection of $14,111,041 reflects a net increase of $1,418,242 over the 2018-19 re-estimate
of $12,692,799. This revenue projection is based on decreasing the property tax rate from $0.64000 to $0.62777 per $100 valuation.
The decrease in the property tax rate for 2019-20 is a result of an escalation in total assessed valuations from 2018-19 to 2019-20 primarily
from new development and from revised property values.

ASSESSED VALUATIONS

The certified tax roll received from the Tarrant Appraisal District (TAD) in July 2019 shows the total appraised value of property in Benbrook
at $2,527,560,856; TAD provided revised assessed valuation and property tax data in September 2019; however, the July 2019 totals are
used for all 2019-20 budget calculations. Total exemptions (over-65, homestead, disability, veterans, pro-rated absolute, and nominal value
- below $500) and total adjustments (absolute exemptions, cases before the Appraisal Review Board, and incomplete accounts) are
$277,010,328. TAD’s minimum projected value of property under protest and/or in incomplete accounts is $27,776,424. The total net
taxable value used to project revenues for 2019-20 is $2,293,677,799. Based on the tax rate of $0.62777, current property tax collections
are projected to be $14,111,041 at a 98% collection rate for both the General Fund and the Debt Service Fund property tax revenue.

DISTRIBUTION OF PROPERTY TAX REVENUE BETWEEN GENERAL FUND AND DEBT SERVICE FUND

Property tax revenue is allocated between the General Fund and the Debt Service Fund. This allocation is determined each fiscal year by
calculating the property tax rate needed to finance each of these two funds. The 2018-19 property tax rate for the General Fund was
$0.60750 per $100 valuation; the 2019-20 property tax rate for the General Fund decreases to $0.60647 per $100 valuation. The
property tax rate for the Debt Service Fund in 2018-19 was $0.0325 per $100 valuation; the 2019-20 tax rate for the Debt Service Fund
decreases to $0.02130 per $100 valuation. For 2018-19, the General Fund received 94.9 percent of property tax revenue; in 2019-20
the General Fund receives 96.6 percent. For 2018-19 the Debt Service Fund received 5.1 percent of the City’s property tax revenue; in
2019-20 the Debt Service Fund receives 3.39 percent.

COLLECTION RATE

The City of Benbrook uses a collection rate of 98.00 percent in calculating the anticipated tax collections. Delinquent tax collections are
based upon the total delinquent taxes outstanding as of September 30 and the City’s historical success of collections. Penalty and interest
estimates are based on the actual amount received during the past several years.

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