Page 48 - Benbrook FY2021

grant funds specifically for the approved projects. Due to a reduction in overall grant funds, Benbrook’s participation has been reduced to
every other year.

The change in the Community Development Block Grant program has no impact on Benbrook’s participation in two CDBG programs administered
by the County. In June 2014, the Council adopted a resolution to continue participating in the Home Investment Partnership Program and the
Emergency Solutions Grant Program, The Home Investment Partnership Program provides funds for building, buying, and/or rehabilitating
affordable housing for rent or homeownership, or providing rental assistance to low-income residents. The Emergency Solutions Grant Program
provides services for emergency shelters and short-term rental assistance to low-income residents.

CORE VALUE FUND

HISTORY AND BACKGROUND OF CORE VALUE FUND

In November 2005 during a planning work session, the Benbrook City Council enumerated its goals and objectives for the upcoming fiscal year
and beyond. Several goals, particularly in municipal finance, were discussed for establishing a clear policy direction for the long term.

These discussions were triggered by the City’s acceptance of a proposal from Chesapeake Energy Corporation for a natural gas and oil lease
for City property. The City owns approximately 211 acres of land with mineral rights in the Whitestone Ranch area. The land includes
Whitestone Golf Course, two undeveloped park sites, and the fire station site. Chesapeake Energy Corporation’s proposal offered a royalty
agreement of twenty-five percent plus a bonus of $5,700 per acre; the total bonus was approximately $1,207,260. With the receipt of this
unexpected windfall, the Council decided to examine financial goals and to institute specific objectives and restrictions for the natural gas and
oil lease proceeds. Council has not yet allocated any of these proceeds for special projects.

The 2007-08 Budget reflected the transfer of $200,000 from General Fund reserves to the Core Value Fund. The City deferred the preliminary
engineering project for Benbrook Boulevard; funds were allocated in the 2006-07 Budget for this project and were not spent. Funds in the
amount of $142,206 were allocated for transfer from the Operating Funds in the 2009-10 Budget. This amount represents the estimated
revenue generated from current property taxes from mineral rights (natural gas wells); Council requested that revenues from this source not be
used for operating programs and used for special projects only. The 2010-11 Budget included the transfer of $571,617 from the General
Fund to the Core Value Fund; $200,000 was for transfer of sales tax revenue attributed to new development and $371,617 was to transfer
current property tax revenue generated from mineral rights. The 2011-12 Budget included the transfer of $535,466 from the General Fund
to the Core Value Fund; $147,693 was transferred for sales tax revenue attributed to new development and $387,773 was transferred from
current property tax revenue generated from mineral rights. The 2012-13 Budget included the transfer of $378,174 from the General Fund
for current property tax revenue generated from mineral rights.

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