Page 59 - Benbrook FY2021

OPERATING FUNDS BUDGET PROPOSAL

The 2020-21 Budget adequately provides for meeting the operational demands of the City. Operating Fund expenditures, transfers, and use
of reserves for 2020-21 in the amount of $22,874,594 are $290,926 more than expenditures and transfers budgeted for 2019-20 in the
amount of $22,583,668. The 2019-20 budget includes $1,150,000 in transfers from General Fund reserves; the 2020-21 Budget includes
the transfer of $500,000 in reserves.

SALARY ADJUSTMENT AND FRINGE BENEFIT INCREASES

COST-OF-LIVING INCREASE

The 2020-21 Budget does not include funds for a cost-of-living adjustment for full-time employees. With the COVID-19 pandemic and new S.B.
2 3.5% property tax cap it was decided that this budget year the City should better position itself for these potential unknowns and loss of
revenue.

MERIT INCREASES FOR ELIGIBLE EMPLOYEES

Employees who are at steps one through six are eligible for a five-percent or one-step merit increase on the employee’s anniversary date.
Merit increases are based on job performance and are implemented following an evaluation by the employee's supervisor; funds for merit
increases are included in the 2020-21 Budget.

FRINGE BENEFIT ENHANCEMENTS

The 2020-21 Budget includes funds to finance an up-to twenty percent increase in employee health, dental, and life insurance premiums,
subsidies, and reimbursements. Through negotiations with the City’s current providers for group health, dental, and life insurance for renewals
effective November 1, 2020, the City expects to continue funding the entire employee premium; to adjust the subsidy for dependent health
insurance to cover the increase in these costs; and to enhance the reimbursement program for out-patient procedure, surgery, and hospitalization
co-payments.

All full-time employees contribute seven percent of salary to the Texas Municipal Retirement System (TMRS). The City matches these contributions
on a two-to-one basis. TMRS informed the City that the City’s rate is scheduled to increase from the current rate of 16.59 percent to 16.74
percent on January 1, 2021.

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