Page 45 - City of Bedford FY21 Budget

The City's largest General Fund cost increases over the next several years will come from actions
implemented by City Council to improve the TMRS Retirement Benefits. City Council approved two
significant enhancements to the benefit:

• Added a “Restricted Prior Service Credit” to employees who are members of the system for service
previously performed for various other public entities for which they have not received credited
service.
• Added an “Updated Service Credits” benefit on an annual basis for service performed by
qualifying members who, at the effective date of the allowance, are members of the City of
Bedford.

Both enhancements will result in an increase in the pension expenditure from 9.02% to 16.25% of salaries
and wages starting in FY 2021.

Overall, fund balance exceeds the City’s targeted levels of 20% every year of the forecast.

PROJECTIONS

The chart on the following page shows the revenue and expense projections by major category for the next
five years, beginning with the budget for FY 2020-2021. This chart was finalized based upon the decision
of the City Council regarding the tax rate for the current fiscal year and varies slightly from the adopted
budget due to final adjustments in personnel numbers following the hiring of a City Manager.

21