Page 108 - FY 2023-24 ADOPTED BUDGET

EXPENDITURE METHODOLOGY

In addition to each of the revenue forecasting methods explained above, Benbrook's financial forecast for
expenditures includes a combination of the incremental and deterministic forecasting models. The following
summary outlines the major characteristics of the expenditure portion of the forecast.

1) The expenditure forecast assumes "a constant level of services" that accounts for inflation but ignores

service enhancements.

2) The forecast does not allow for personnel increases based on projected population increases but does
include salary adjustments based on the projected rate of inflation.

3) The forecast separates expenditures into a variety of line items, and projects those expenditures based on
a separate set of inflation factors or rates.

4) The forecast includes operational and maintenance costs associated with new capital facilities.

These revenue and expenditure forecasts combine to form the basis of a comprehensive financial condition analysis
of each of the City's operating funds.

FORECAST ASSUMPTIONS

REVENUE ASSUMPTIONS

The General Fund and Debt Service Fund revenues are projected by using the following methods: the 2022-23
Budget is adjusted annually, according to the projected rates of inflation for each year, expert judgment is used to

project the line item revenues, and the 2023-24 Budget is adjusted to correspond with projected increases in the
City's population. All revenue projections are based on the current fee structures. Any changes in fee structures
could dramatically affect the outcome of the financial forecast.

Property Tax Collections

Property tax collections are projected using the following assumptions and methodology:

1) The net taxable value for 2023-24 is furnished by the Tarrant Appraisal District (TAD).

2) The net taxable value for 2024-25 is computed by using the value of building permits issued in 2022-23.

3) The net taxable value for 2025-26 is calculated using the estimated value of building permit collections in
the 2023-24 Budget.

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