Page 111 - FY 2021-22 ADOPTED BUDGET

relatively consistent computations, in that the City's per capita spending has remained constant over the past ten
years. When either of these two methods does produce numbers that are inconsistent with the forecast, the City
Staff uses expert judgment to establish projected expenditure levels.

The forecast is predicated on the following expenditure assumptions for the General Fund:

1) City services, programs, and the number of employees remain at the level presented in the 2025-26 Budget.

2) Increases in salaries are computed on cost-of-living adjustments based on the projected increase in the
employment cost index and consumer price index.

3) Costs of insurance (health, dental, life, workers' compensation, and unemployment) premiums increase at

rates similar to those experienced over the past ten years; the 2025-26 total includes funds for an up-to
twenty percent increase.

4) TMRS costs for future years of the forecast reflect increased contribution rates due to additional retirees as
the City's workforce ages.

5) Costs of other fringe benefits (FICA, overtime, stability/longevity pay, and incentive pay) increase at the
projected rate of salary adjustments.

6) The volume of supplies and materials remains at the same level of use; costs increase at the projected level
of inflation.

7) Contractual services increase in costs depending on assorted inflation factors, utilities increase based on

historical trends, fuel costs increase based on wholesale prices of gasoline and diesel, and other contractual
services increase based on inflation.

8) Repair and maintenance costs increase based on historical trends and inflation.

9) Capital outlay funds to replace four Police vehicles (through the General Fund) are included in each of the
forecast years; costs increase according to projected inflation levels.

10) Debt Service costs reflect current obligations including: general obligation debt issues approved by
Benbrook’s voters, general obligation bonds issued in 2021, and general obligation bonds issued in 2004
and re-financed in 2013. Debt Service expenses reflect current obligations and include bonds sold as of
October 1, 2025. Certificates of Obligation sold in 2007 are included in the Long-Range Financial Forecast;
however, these bonds are to be financed through a transfer from the City’s Stormwater Utility fees and not
through ad valorem taxes collected for the General and Debt Service Funds.

11) Transfers and the use of unappropriated reserves are reflected in 2025-26 in the amount of $600,000 from
the General Fund. Funds in the amount of $550,000 are scheduled for transfer from General Fund reserves
to the Capital Asset Replacement Fund and $50,000 to the IT/Facilities Fund. Transfers are to be determined
each year.

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