Page 97 - Benbrook FY20 Approved Budget

CITY OF BENBROOK 2019-20 ANNUAL BUDGET

Franchise Tax Collections

The revenue projections for 2019-20 are based on actual payments made in 2018-19 by each of the utility companies. Future increases in
the City's franchise tax collections are based on the forecasted inflation rate, estimates provided by the utility companies, and the City's
projected population increases. The 2019-20 projection and all future year projections for revenue from the City's franchise agreement with
Atmos Energy Company, Spectrum Communications, Trinity Waste Systems, and AT&T are based on the revised franchise agreement
implemented in 1992-93. The franchise payments from Oncor include the amended percentage approved by the Texas Legislature for 2019-
20 and future years of the forecast. Revenue from franchise fees increases at the rate of inflation combined with projected increases in
population.

Sales and Other Local Taxes

Sales tax collections rose substantially in the middle of 2018-19 upon the completion of the Benbrook Boulevard Project. Sales tax revenue
is expected to increase steadily, throughout the forecast years. In 2019-20 sales tax revenue is projected to increase by approximately
$50,000 from $2,650,000 to $2,700,000. Future increases are based on growth in population and on the rate of inflation. Sales tax from
new businesses is expected to impact the City's sales tax collections in 2019-20 and in future years.

Licenses, Permits, and Filing Fees

Building permit issuance for residential properties is expected to increase in 2019-20 and to continue to increase for years after 2019-20
based upon planned development in Benbrook.

Fines and Forfeitures

All revenue from fines and forfeitures is projected to increase at the rate of the estimated population growth for years after 2019-20. The
City's Municipal Court Judge exercises judicial discretion in assessing fines in the court; however, these fines must be established within certain
parameters set by State law. The revenue projections assume no significant departure from the fine structure currently in place.

Use of Money and Property

Interest earnings for 2019-20 and future years are projected using expert judgment. Interest earnings in future periods are based on the
current price of Treasury Department notes and bonds, certificates of deposit, as well as the City's investment pools. Average monthly cash
requirements and the probability of future bond issues are also considered prior to finalizing these projections. Interest income escalates as
reserves increase. The 2019-20 projection is based on more-fluid interest rates and more aggressive investing.

97 | P a g e