Page 29 - Bedford-FY23-24 Budget

Truth in Taxation
The ad valorem tax is a tax assessed on real property in order to provide a revenue stream for government operations. The FY
2023-2024 proposed budget was developed with a tax rate of $0.495726 per $100 assessed valuation, which is presented to the
City Council for approval during the budget process.

The tax rate is used to generate revenue to provide for operations. The two main functions supported by the ad valorem tax are
General Fund operations and Debt Service payments. The tax rate has two different sub-rates.
The maintenance and operations, or M&O, rate is used by the General Fund to pay for General Fund expenses.
The interest and sinking, or I&S, rate is used by the Debt Service Fund to pay for the annual debt obligations for the City.

To determine the tax rates for FY 2023-2024, the Tax Assessor for Tarrant County utilizes information from FY2022-2023 and
from the estimated new property values developed during the current scal year.

The following are the rates established by the Tax Assessor:

No New Revenue Tax Rate $0.457431
No New Revenue M&O Rate $0. 339437
Voter ApprovalTax Rate $0.495726
Debt Rate $0.143895

Unadjusted Voter Approval Rate $0.573351
Sales Tax Adjustment Rate $0.077625
Voter Approval Rate, Adjusted for Sal es
$0.495726
Tax
Senate Bill 2, also known as the Texas Property Tax Reform and Transparency Act of 2019, was passed by the Texas Legislature in
2019. At its most fundamental level, S.B. 2 reforms the system of property taxation in three primary ways: (1) lowering the tax
rate a taxing unit can adopt without voter approval and requiring a mandatory election to go above the lowered rate; (2)
making numerous changes to the procedure by which a city adopts a tax rate; and (3) making several changes to the property
tax appraisal process (Texas Municipal League). The bill took effect 1 January 2020.

Previously, any rate adopted that exceeded the 8 percent rollback rate triggered the ability of citizens to petition to hold an
election to “roll back” the tax rate to the rollback rate. Generally speaking, S.B. 2 requires a city to hold an automatic election
(i.e., the bill eliminates the petition requirement) on the November uniform election date if it adopts a rate exceeding the 3.5
percent voter-approval rate. See TEX. TAX CODE § 26.07.

City of Bedford, TX | Proposed Budget FY 2023-2024 Page 29