Page 95 - Benbrook FY2021

Franchise Tax Collections

The revenue projections for 2020-21 are based on actual payments made in 2019-20 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 2020-21 projection and all future year projections for revenue from the City's franchise agreement with Atmos Energy
Company, Spectrum Communications, Republic Services, 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 2020-21 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 and continued to rise
through 2019-20. Sales tax revenue is expected to increase steadily, throughout the forecast years. In 2020-21, however, sales tax revenue
is projected to remain flat at $3,250,000 due to the COVID-19 pandemic. Future increases are based on growth in population and on the rate
of inflation.

Licenses, Permits, and Filing Fees

Building permit issuance for residential and commercial properties is expected to decrease in 2020-21 because large developments were
complete in 2019-20. Future years increase should see an increase 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 2020-21. 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 2020-21 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 2020-21 projection is based on more-fluid interest rates and more aggressive investing.

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