Page 26 - FY 2023-24 ADOPTED BUDGET

BASIC FINANCIAL GOALS

Due to Benbrook's dependence on property taxes as the primary source of General Fund and Debt Service Fund
revenue, the City was not as adversely affected by the slowdown of the economy as experienced by many Texas
municipalities since September 2001. In fact, Benbrook has proven to be an exception to this trend. In 2010, a Wal-
Mart opened in Benbrook and is serving as an anchor to secure new commercial development. Benbrook initially

experienced an increase in sales tax revenue from Wal-Mart and other businesses. However, a slight decrease in
sales tax revenue occurred from 2012 through 2016 as a result of the closing of other retailers within Benbrook.
This project resulted in a reduction in the number of shoppers along this corridor due to the inconveniences created
by the construction. With the completion of this project in 2017-18, Benbrook’s revenue from sales tax has
increased significantly.

In years past, Benbrook was vulnerable to a loss of residential property tax revenue. In March 2004, the City Council
approved an ordinance establishing an ad valorem tax limitation on residential homesteads of the disabled and

persons sixty-five years of age or older and their spouses, as authorized and defined by the Texas Constitution,
Article VII, Section 1-b and Texas Tax Code Section 11.261. When the over-sixty-five limitation was enacted,
Benbrook’s property tax exemptions for senior citizens increased, but not as exponentially as projected.

Over the past years, the City Council exercised caution in determining the annual property tax rate. The 2023-24
Budget reflects the lowering of the property tax rate to $0.5650 per $100 valuation. The City’s tax rate is still at a
level to generate sufficient property tax revenue should any economically negative trends invade Benbrook in the
near future.

The 2023-24 Budget ensures that Operating Fund reserves are maintained at a minimum of $8,000,000. The 2023-
24 Budget is designed to finance basic operating services at a high-level of service to Benbrook’s residents and to
retain dedicated and valued employees. The Budget includes limited capital purchases, no new programs, or
enhancements.

The 2023-24 Budget continues implementation of the City's financial policies and goals. The 2023-24 Budget is a
balanced budget in that no funds have to be borrowed to provide the proposed level of services. The projected

year ending fund balance for the General Fund and Debt Service Fund in the amount of $19,572,540 is more than
adequate to provide for any normal emergency. The projected reserves at year-end are sufficient to maintain the
City's current bond ratings by both Moody's Municipal Services and Standards and Poor’s Investor Service.

In 2021, Standard and Poor’s raised its rating on the City of Benbrook’s general obligation debt to AA+ from AA-
based upon the stable economic outlook. The upgrade reflects Standard and Poor’s assessment of a very strong
local economy, good financial management practices, and very strong liquidity.

As noted, the 2023-24 Budget does lower the City's property tax rate to $0.5650 per $100 valuation. The Budget
provides for specific services (building permits, licenses, zoning applications, ambulance services, and other permits
and services) to be paid by the users of those services through fees, permits, and service charges. Revenue

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