Page 58 - Benbrook FY2021
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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
are projected for interest payments for 2016-17 until the bonds are retired in 2019-20.
Under current Texas statutes, the City has no legal limit on bonded debt. State statutes do, however, limit the total amount of ad valorem taxes
the City can impose. This limit is $2.50 per $100 of assessed valuation The City's total tax rate of $0.6225 (for both the General Fund and
the Debt Service Fund) and the tax rate for retirement of debt service of $0.0210 are considerably below this limit.
Debt Service expenses financed through property tax revenue total $1,032,966 in 2020-21. Included in this total is $975,000 for general
obligation bond principal retirements, $57,966 for general obligation bond interest expenses, and $3,800 for agent fees.
No additional debt is scheduled for issuance in 2020-21.
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