Page 25 - Bedford-FY24-25 Budget

calculated in several ways, either on a gross receipts basis, per access line, per kilowatt-hour of power
consumed, etc. The methodology for each utility franchise is somewhat different. Staff continues to review
collections and adjust as necessary based on current trends.

Licenses/permits — This category includes a wide variety of building-related permits, re marshal permits,
alarm permits, sign permits, etc. Revenue for several classi cations of licenses and permits is projected to
increase for next year.

Fines and Fees — The two major drivers in this revenue category are Municipal Court Fines and
Ambulance Fees. Municipal Court ne revenue increased slightly for next year. Ambulance Fees were
increased based on the performance of the new billing company.

General Fund Expenditures — Expenditures in the General Fund total $49,686,596 compared to $46,695,592 in
FY 2023-2024. Some increases in base expenditures are included to fund contractual obligations that have
already been committed, continued operation of current programs, and unfunded mandates from the State of
Texas or other entities. The main cost drivers came from increases in insurance, fuel, mowing contract, utilities,
and worker's compensation costs. Additionally, the general fund will be supporting the operations of a new
Senior Citizen Center. Approximately $2.5 million of the increase comes from one-time purchases from excess
reserves for such items as an ambulance remount, vehicle replacements, body armor, and a $1,500,000 transfer
of reserves from the General Fund to the equipment replacement fund for future eet replacement. Ongoing
revenues continue to exceed ongoing expenditures.

Water works Utility Fund
Waterworks Utility Fund expenses are budgeted at $28,923,688 in FY 2024-2025 compared to $27,533,636 in FY
2023-2024. In July 2015, the City of Bedford quali ed for a low-cost loan program from the Texas Water
Development Board (TWDB) in the amount of $90 million to be issued over several years. In FY 2015-2016, the
City issued $30 million as part of the State Water Implementation Fund for Texas (SWIFT) program. In FY 2017-
2018, the City issued the next $20 million. During FY 2019-2020, staff worked with a consultant to evaluate the
rates for water and sewer services. After receiving the report on the Water and Sewer rates, the City Council
elected to begin incremental increases in the rates to address the annual cost increases from the Trinity River
Authority (TRA) and the capital investment needed in the infrastructure. Staff worked with consultants to
update the recommendations for rates for FY 2024-2025. The Trinity River Authority charge increased for the
upcoming year. Based on these circumstances, it is recommended to increase rates for water and sewer service
in this scal year, which will provide enough funding for planned capital investments in the system. The
increased rates include a pass-thru increase of 6.4% from TRA water rates and 9.9% for TRA sewer rates.

Stormwater Utility Fund
The Stormwater Utility Fund was established in 1991 in accordance with amendments to Title 13 of the Texas
Local Government Code. It is structured under the enterprise fund concept. Revenues for this fund are derived
from a monthly fee charged to each utility customer, calculated based on the impervious surface on the
property. The residential stormwater utility rate was increased in FY 2021-2022 to $5.00 per month ($4.50 per
month for residential account holders over 65 years of age) as a result of the rate study and this number is used
in the base calculation for non-residential properties. Expenses in the Stormwater Utility Fund are used for
stormwater maintenance personnel, mowing and maintenance of drainage channels, mosquito control, street
sweeping, environmental awareness, and debt service payments on long-term obligations for capital projects
throughout the stormwater system. Budgeted revenue for the Stormwater Utility Fund for FY 2024-2025 is
$1,993,583 and expenses are budgeted at $1,662,625. Expenditures are relatively stable in this fund.

Debt Ser vice Fund
The Debt Service Fund (sometimes referred to as the Interest and Sinking Fund) is used to account for the
accumulation of resources for the repayment of general long-term debt. The tax rate for the repayment of
long-term debt in FY 2024-2025 is $0.137867. Summary schedules and detailed information on individual bond
obligations can be found in the Debt section. There is a one-time draw-down of excess fund balance in the FY
2024-2025 budget.

Special Revenue Funds

City of Bedford, TX | Adopted Budget FY 2024-2025 Page 25