Page 99 - Benbrook FY2021

DEBT SERVICE FUNDS

Projections for the Debt Service Fund expenditures are based on current debt requirements. The forecast does not project any additional bond
issues over the tenure of the forecast period. The amount of the debt requirements is the actual amount due based on the information provided
by the City's financial advisor. Tables are included in the Debt Service Fund that summarize principal and interest requirements for all debt
issued and for each issue of general obligation bonds, certificates of obligation.

FORECAST RESULTS

Based on the current estimates of revenues and expenditures, the City should be able to maintain a property tax rate at or below the rollback
rate throughout the forecast period. Without an increase in the property tax rate, the City can continue services at current levels without any
adjustments in staffing levels. Reserves can be maintained above the recommended level of $8,000,000 and three months of operating
expenses for the operating budget. In any of the forecast years, the City may have the flexibility to decrease the property tax rate, enhance
services, issue additional debt, or provide a combination of the three depending upon the economic conditions and political climate at that time.
Of course, one adjustment in revenues, expenditures, or a combination of the two impacts that year as well as all future years of the long-range
financial forecast.

Expenditure projections included within the forecast do not reflect any service enhancements (additional employees, new equipment, or program
changes). The projections do include the replacement of existing equipment based on past equipment replacement practices. Five police
vehicles are scheduled for replacement in each of the forecast years. The projects also include funds for the street overlay and street rebuilding
programs for each year of the forecast.

The 2020-21 Budget on which the Long-Range Financial Forecast is based is an atypical budget in that expenditures for General Fund
Departments reflect the addition of relatively few special projects. During the forecast period - as Benbrook continues to grow in population,
in business, and in industrial ventures and establishments - additional personnel are required in these future forecast years to meet additional
needs and requirements for public safety, public works, and community development. These issues and other special needs that develop in each
year of the forecast are expected to be determined, reviewed, and approved as part of the annual budget process.

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