Page 34 - City of Bedford FY22 Budget

Sale s t ax proje ct ions hav e mode st incre ase s bu ilt in ov e r t he ne x t { v e y e ars, wit h 0 .5% e st imat e d for FY 20 23,
0 .25% for FY 20 24 , 0 % for FY 20 25, and 0 .5% for bot h FY 20 26 and FY 20 27. This re | e ct s t he C it y 's st at u s of be ing
almost fu lly bu ilt ou t and sale s t ax pot e nt ial be ing de pe nde nt on re de v e lopme nt and e conomic condit ions.

The ov e rall e x pe ndit u re s in t he mode l are re | e ct iv e of t he incre ase in t he mu nicipal cost inde x on an annu al
basis. The av e rage mu nicipal cost inde x is adju st e d and applie d t o all e x pe ndit u re line it e ms t o pre se nt
fore cast e d re su lt s. The av e rage of all e x pe nse line it e ms, e x clu ding pay roll-re lat e d e x pe ndit u re s, are fore cast e d
t o incre ase 0 .5% pe r y e ar.

The mode l ide nt i{ e s a ce rt ain pe rce nt age of t he e x pe ndit u re cat e gorie s t hat are de dicat e d t o pe rsonne l and
fact ors annu al compe nsat ion incre ase s t owards pe rsonne l cost s in orde r t o proje ct what t he t ot al cost wou ld
be ov e r t he ne x t { v e y e ars. The mode l inclu de s a 2% st e p adju st me nt for Pu blic Safe t y Sworn e mploy e e s and a
2% cost of liv ing adju st me nt for all e ligible ge ne ral e mploy e e s.

The C it y 's large st Ge ne ral Fu nd cost incre ase s ov e r t he ne x t se v e ral y e ars will come from act ions imple me nt e d
by C it y C ou ncil in FY 20 21 t o improv e t he TMR S R e t ire me nt Be ne { t s. C it y C ou ncil approv e d t wo signi{ cant
e nhance me nt s t o t he be ne { t :

Adde d a “R e st rict e d Prior Se rv ice C re dit ” t o e mploy e e s who are me mbe rs of t he sy st e m for se rv ice
pre v iou sly pe rforme d for v ariou s ot he r pu blic e nt it ie s for which t he y hav e not re ce iv e d cre dit e d se rv ice .
Adde d an “U pdat e d Se rv ice C re dit s” be ne { t on an annu al basis for se rv ice pe rforme d by qu alify ing
me mbe rs who, at t he e ffe ct iv e dat e of t he allowance , are me mbe rs of t he C it y of Be dford.

Bot h e nhance me nt s re su lt e d in an incre ase in t he pe nsion e x pe ndit u re from 9 .0 2% t o 1 6 .25% of salarie s and
wage s st art ing in FY 20 21 and cont inu ing t hrou gh all y e ars in t he mode l.

Ov e rall, fu nd balance e x ce e ds t he C it y ’s t arge t e d le v e ls of 20 % e v e ry y e ar of t he fore cast .

P R O J E C TIO NS

The abov e chart shows t he re v e nu e and e x pe nse proje ct ions by major cat e gory for t he ne x t { v e y e ars,
be ginning wit h t he bu dge t for FY 20 21 -20 22. This chart was { nalize d base d u pon t he de cision of t he C it y
C ou ncil re garding t he t ax rat e for t he cu rre nt { scal y e ar and v arie s slight ly from t he adopt e d bu dge t du e t o
{ nal inclu sion of it e ms adde d by t he C it y C ou ncil whe n v ot ing on t he adopt e d bu dge t .
Utility Systems

The Ci t y o f B edf o r d m ai nt ai ns Wat er , Was t ewat er , and S t o r m wat er Ut i l i t y s y s t em s f o r i t s r es i dent s . Thes e s y s t em s r equi r e
f undi ng f o r dai l y o perat i o nal expens es and capi t al i nv es t m ent t o m ai nt ai n t he i nf ras t r uct ur e. As par t o f t he budg et pr o ces s ,
Ci t y s t af f wo r k wi t h co ns ul t ant s t o r ev i ew t he rat es char g ed f o r t hes e s er v i ces t o ens ur e t hat r ev enue i s s uf { ci ent . Thi s
r equi r es ev al uat i ng t he f ut ur e capi t al needs and f undi ng pl ans , i ncl udi ng f ut ur e debt i s s uances , t o pl an f o r expect ed rat e
i ncr eas es . D ur i ng t he budg et di s cus s i o n, t he Ci t y Co unci l ev al uat es t he r eco m m endat i o ns f o r rat e chang es bas ed o n t he
r epo r t f r o m s t af f and t he co ns ul t ant s .

The at t achm ent s bel o w ar e t he pr es ent at i o ns g i v en t o t he Ci t y Co unci l dur i ng t he l as t t wo rat e r ev i ews . F o r F Y 22, t he Ci t y ' s
s o ur ce f o r wat er pur chas e and was t ewat er t r eat m ent r educed t hei r co s t and debt was no t i s s ued as ant i ci pat ed, al l o wi ng t he
Ci t y t o ho l d t he rat es f o r t ho s e t wo s er v i ces f o r t he co m i ng y ear . As a r es ul t , t he o nl y rat e under r ev i ew was t he s t o r m wat er
rat e.

City of Bedford, TX | Budget Book 2022 Page 34