Page 70 - Benbrook FY2021

PROPERTY TAX REVENUE

The 2020-21 Budget ad valorem tax revenue projection of $14,194,409 reflects a net increase of $717,272 over the 2020-21 re-estimate
of $13,477,137. This revenue projection is based on decreasing the property tax rate from $0.62777 to $0.6225 per $100 valuation. The
decrease in the property tax rate for 2020-21 is a result of an increase in total assessed valuations from 2019-20 to 2020-21 primarily from
new development and from revised property values. Also, the Voter-Approval Rate cap was lowered from 8 percent to 3.5 percent due to new
S.B. 2 property tax legislation.

ASSESSED VALUATIONS

The certified tax roll received from the Tarrant Appraisal District (TAD) in July 2020 shows the total appraised value of property in Benbrook
at $2,656,003,882; TAD provided revised assessed valuation and property tax data in September 2020; however, the July 2020 totals are
used for all 2020-21 budget calculations. Total exemptions (over-65, homestead, disability, veterans, pro-rated absolute, and nominal value -
below $500) and total adjustments (absolute exemptions, cases before the Appraisal Review Board, and incomplete accounts) are
$363,364,639. TAD’s minimum projected value of property under protest and/or in incomplete accounts is $73,139,760. The total net taxable
value used to project revenues for 2020-21 is $2,377,284,578. Based on the tax rate of $0.6225, current property tax collections are
projected to be $14,194,409 at a 100% collection rate for both the General Fund and the Debt Service Fund property tax revenue.

DISTRIBUTION OF PROPERTY TAX REVENUE BETWEEN GENERAL FUND AND DEBT SERVICE FUND

Property tax revenue is allocated between the General Fund and the Debt Service Fund. This allocation is determined each fiscal year by
calculating the property tax rate needed to finance each of these two funds. The 2019-20 property tax rate for the General Fund was
$0.60647 per $100 valuation; the 2020-21 property tax rate for the General Fund decreases to $0.6015 per $100 valuation. The property
tax rate for the Debt Service Fund in 2019-20 was $0.0213 per $100 valuation; the 2020-21 tax rate for the Debt Service Fund decreases
to $0.0210 per $100 valuation. For 2019-20, the General Fund received 96.61 percent of property tax revenue; in 2020-21 the General
Fund receives 96.63 percent. For 2019-20 the Debt Service Fund received 3.39 percent of the City’s property tax revenue; in 2020-21 the
Debt Service Fund receives 3.37 percent.

COLLECTION RATE

The City of Benbrook uses a collection rate of 100.00 percent in calculating the anticipated tax collections. Delinquent tax collections are based
upon the total delinquent taxes outstanding as of September 30 and the City’s historical success of collections. Penalty and interest estimates
are based on the actual amount received during the past several years.

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