Page 24 - Bedford-FY24-25 Budget

Compensation for our existing employees has been split into two components to maximize bene t to the
employees, while also ensuring that revenues are suf cient to afford the plan. Beginning October 1, the City is
implementing a 3% cost of living adjustment (COLA) for all employees. Additionally, funding is included for
compression and grade movement.

After evaluating options for Health Insurance and Dental Insurance plans, the budget includes funding bene ts
are current levels.

Staf{ng Level Changes

Each year, Departments evaluate their operations and evaluate staf ng needs. A detailed breakdown of all
personnel changes can be found in the "Personnel Summary". With the transition of a new City Manager from
the Development department, the current Assistant City Manager position was reclassi ed into an Economic
Development specialist and two part-time Customer Service representatives for City Hall.

Cultural Arts were transitioned from General Government employees to Parks, Recreation & Special Events.

Additionally, currently frozen positions were evaluated and all but one were eliminated.

Change to Funds

In the FY 2024-2025 budget, several funds have either been eliminated or consolidated for ease of tracking,
control, and reporting. These include the Commercial Vehicle Enforcement Fund and various donation funds.
Monies set aside from these funds will still be spent on the established and intended purposes. They will now
be tracked at the account level as opposed to the fund level.

General Fund

Revenue - The budget provides funding for continuation of all current programs and services.
General Fund
Revenue for FY 2024-2025 is budgeted at $47,206,689 compared to $45,423,467 in the FY 2023-2024 amended
budget. An increase is budgeted for property tax, sales tax, and interest income.

Property taxes — Property taxes make up the largest single revenue source for General Fund operations.
The property tax rate is made up of two segments. The rst is the Maintenance and Operations (M&O) rate.
This amount is dedicated to daily operations of the City that fall within the General Fund. Services such as
Police, Fire, Parks and Recreation, Library, Senior Center, Neighborhood Services, Inspections, Finance, and
General Governmental functions are included in the General Fund. The second segment of the tax rate is
the Debt Service rate. This is the tax rate that is pledged to repay long term debt obligations of the City.
The property tax rate is calculated annually based on property values as submitted to the City by the
Tarrant Appraisal District. The property tax rate is approved by the City Council after state and charter
mandated public hearings.

The tax rate to fund the 2024-2025 budget is $0.495726, which is the same as the adopted tax rate for 2023-
2024. The number of properties eligible for over 65 tax ceilings increased from 4,544 in 2023 to 4,608 in 2024.

Since 1995, the City of Bedford has collected an additional one-half of one percent in sales tax for the reduction
of property taxes. Sales tax collections vary from year to year, which can have either a positive or negative
impact on the operations and maintenance tax rate. The sales tax adjustment rate decreased from the 2023
rate of $0.077625 to the 2024 rate of $0.075883.

Sales tax — Monthly collections have increased when compared to the prior year. Staff estimates remain
conservative, due to current in ation and the resulting volatility in sales tax collections. The revenue
amount budgeted has been increased for the coming year following the leveling off of collections over the
past year.

Franchise Fees — This revenue source is sometimes referred to as “street rental fees” or “right-of-way
rental fees” paid by utility companies that install their service lines within city right-of-way. These fees are

City of Bedford, TX | Adopted Budget FY 2024-2025 Page 24