Page 28 - FY 2023-24 ADOPTED BUDGET

HONORABLE MAYOR AND MEMBERS OF THE BENBROOK CITY COUNCIL

I am pleased to transmit to you the 2023-24 Budget for the City of Benbrook. This Budget meets all the provisions

of the Home Rule Charter of the City of Benbrook, Texas and all applicable laws of the State of Texas. The 2023-24
Budget adopted by the City Council consists of the General Fund and the Debt Service Fund. Annual expenditures
for these two funds are approved by the City Council through the adoption of an ordinance. Council also establishes
the property tax rate through the adoption of an ordinance; separate property tax rates are adopted for the General
Fund and for the Debt Service Fund. Copies of these two ordinances are included in the Statistical and Supplemental
Section of the 2023-24 Budget Document.

The 2023-24 Budget, as adopted by the Benbrook City Council, consists of the General Fund and the Debt Service

Fund; when these two funds are combined for revenue, expenditure, and fund balance reporting, they are referred
to as the Operating Funds. Unless specified, the term 2023-24 Budget that is reflected throughout this document
refers to the Operating Funds.

The City of Benbrook also has the Capital Projects Fund; Other Funds (Tax Increment Financing Fund, Core Value
Fund, Stormwater Utility Fund, Police Narcotics Fund, and Hotel/Motel Occupancy Tax Fund); and Grant Funds.
Whereas these funds are examined during the budget review and adoption process, expenditures for these funds
are not formally established through the adoption of ordinances. The 2023-24 Adopted Budget Document does

not include financial information for these funds.

The Benbrook Economic Development Corporation (EDC) is a department of the City; however, financial reporting
is maintained on a separate basis. The EDC is considered a blended component unit of the City. The Benbrook
Economic Development Corporation’s Director prepares an annual budget and presents this document to the
BEDC’s Board of Directors for approval. The budget is then submitted to the City Council for ratification.

2023-24 ADOPTED BUDGET

During the review and subsequent adoption of the 2023-24 Budget, the Benbrook City Council and the City Staff

focused on meeting the challenges of balancing the budget with minimal use of reserve funds, keeping reserves at
or above the specified level, maintaining the property tax rate at its current rate or lower, compensating employees
at a level sufficient to remain competitive, continuing services to citizens and businesses with no reduction in quality
or quantity, and replacing and updating essential equipment.

CHALLENGES

Although COVID-19 cases have decreased, the City still has to take into consideration that another outbreak may
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occur, with potential shutdown, and loss of revenue. Also, this is the 4 year of S.B. 2 that limits tax revenue raised
on the M&O portion to 3.5% over prior year, net of new construction. While the City has seen strong sales tax
growth in 2018-19 and 2019-20 with the completion of Benbrook Boulevard, 2020-21 saw little growth. In 2021-22
the City has seen increase growth again, but we remain cautious. The City in 2021-22 began the construction of a
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