Page 91 - Benbrook FY20 Approved Budget

CITY OF BENBROOK 2019-20 ANNUAL BUDGET

The Budget includes additional funds for the cost-of-living adjustment for the three employees; this amount is for salaries and for fringe benefits.
The Budget includes funds for an increase in health, dental, and life insurance premiums.

TRANSFERS AND OTHER EXPENSES

Transfers and other uses of funds included in the 2019-20 Budget total $1,150,000. This total is $734,804 less than the amount included in
the 2018-19 re-estimate of $1,884,804.

The 2018-19 re-estimate includes the transfer of $250,000 from General Fund reserves to the Capital Asset Replacement Fund, $500,000
to the Capital Facilities Fund for the Clearfork Emergency Access Bridge, and $214,804 for the completion of the Animal Shelter, and the use
of $920,000 of General Fund Reserves for the new 800mhz radio communication system.

The 2019-20 Budget includes the transfer of $250,000 from the General Fund to the Capital Asset Replacement Fund, $650,000 from
General Fund reserves to the Clearfork Emergency Access Bridge Account of the Capital Projects Fund, and $250,000 to the newly created
Wall Repair Fund.

DEBT SERVICE

The 2019-20 Budget includes Debt Service expenditures of $1,561,424. These costs are $680 less than the 2018-19 re-estimate of
$1,562,104. Principal expenses 2019-20 are $1,430,000; this total is $40,000 more than the 2018-19 re-estimate of $1,390,000. Interest
expenses for 2019-20 are $127,624 for a net decrease of $40,680 compared to the 2018-19 re-estimate of $168,304. Fiscal charges
for 2018-19 and for 2019-20 are $3,800.

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 has occurred and projected for interest payments for 2019-20 when the bonds are retired.

In November 2013, the City re-financed general obligation bonds. This transaction results in lower interest payments for 2019-20 and for
future years.

The City issued certificates of obligation in the summer of 2007; this debt has no financial impact on the City. A transfer to the Debt Service
Fund from the Stormwater Utility Fund is made to cover the payment of this debt.

In 2005, the City issued $2,500,000 in certificates of obligation to finance projects and expenses related to the Tax Increment Financing (TIF)
District. 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

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