Page 109 - FY 2023-24 ADOPTED BUDGET

4) The net taxable values for 2026-27, 2027-28, and 2028-29 are obtained using estimates based on current
building levels.

5) TAD re-appraises property within Benbrook every two years. Increases in property values are based on the
projected inflation rate.

6) New exemptions are computed by using the current ratio of assessed valuations to total exemptions.

7) The property tax collection rate remains at 100.00 percent (97.00 percent for current tax collections and
3.00 percent for delinquent collections) of the tax levy for future years of the forecast period.

8) Penalty and interest on delinquent collections is held at a constant percentage of the total delinquent tax
roll.

9) The City of Benbrook's property tax rate increases to the 3.50% Voter-Approval rate that began in 2020-21
and during the entire period of the long-range financial forecast.

10) For 2023-24, assessed valuations increase by 13.90 percent; in future years property values in Benbrook are
expected to increase by at least two percent due to proposed development and revaluation of property by
TAD.

Franchise Tax Collections

The revenue projections for 2023-24 are based on actual payments made in 2022-23 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 2023-24 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 2023-24 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 2022-23. Sales tax revenue is expected to increase steadily, throughout the
forecast years. In 2023-24, however, sales tax revenue is projected to remain flat at $4,000,000 due to the COVID-
19 pandemic and the possibility of a recession. Future increases are based on growth in population and on the rate

of inflation.

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