Page 96 - Benbrook FY20 Approved Budget

CITY OF BENBROOK 2019-20 ANNUAL BUDGET

FORECAST ASSUMPTIONS

REVENUE ASSUMPTIONS

The General Fund and Debt Service Fund revenues are projected by using the following methods: the 2018-19 Budget is adjusted annually,
according to the projected rates of inflation for each year, expert judgment is used to project the line item revenues, and the 2019-20 Budget
is adjusted to correspond with projected increases in the City's population. All revenue projections are based on the current fee structures.
Any changes in fee structures could dramatically affect the outcome of the financial forecast.

Property Tax Collections

Property tax collections are projected using the following assumptions and methodology:

1) The net taxable value for 2019-20 is furnished by the Tarrant Appraisal District (TAD).

2) The net taxable value for 2020-21 is computed by using the value of building permits issued in 2018-19.

3) The net taxable value for 2021-22 is calculated using the estimated value of building permit collections in the 2019-20 Budget.

4) The net taxable values for 2022-23, 2023-24, and 2024-25 are obtained using estimates based on current building levels.

5) TAD re-appraises property within Benbrook every two years. Increases in property values are based on the projected inflation rate.

6) New exemptions are computed by using the current ratio of assessed valuations to total exemptions.

7) The property tax collection rate remains at 99.00 percent (98.00 percent for current tax collections and 1.00 percent for delinquent
collections) of the tax levy for future years of the forecast period; an exception was made for the 2018-19 calculation since 100.00
percent was used.

8) Penalty and interest on delinquent collections is held at a constant percentage of the total delinquent tax roll.

9) The City of Benbrook's property tax rate increases to the 3.50% rollback rate beginning in 2020-21 and during the entire period of
the long- range financial forecast.

10) For 2019-20, assessed valuations increase by 6.32 percent; in future years property values in Benbrook are expected to increase by
at least two percent due to proposed development and revaluation of property by TAD.

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