Page 33 - Bedford-FY24-25 Budget

Property values are projected to increase an average of 4.0% from FY 2026 – FY 2030. This will drive the actual
property tax rates that will be proposed in the next ve years.

Sales tax projections have moderate increases built in over the next ve years, with 5% estimated for each of the
next ve years. This re ects the City's status of being almost fully built out and sales tax potential being
dependent on redevelopment and economic conditions. It also takes into account recent new businesses that
have opened and expanded the sales tax base.

The overall expenditures in the model are re ective of the increase in the municipal cost index on an annual
basis. The average municipal cost index is adjusted and applied to all expenditure line items to present
forecasted results. The average of all expense line items, excluding payroll-related expenditures, are forecasted
to increase 1% per year.

The model identi es a certain percentage of the expenditure categories that are dedicated to personnel and
factors annual compensation increases towards personnel costs in order to project what the total cost would
be over the next ve years. The model includes a 4% step adjustment for Public Safety Sworn employees and a
3% cost of living adjustment for all eligible general employees.

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

PROJECTIONS

The above chart shows the revenue and expense projections by major category for the next ve years,
beginning with the budget for FY 2024-2025. This chart will be nalized based upon the decision of the City
Council regarding the tax rate for the current scal year and nal adopted budget.

Utility Systems

The City of Bedford maintains Water, Wastewater, and Stormwater Utility systems for its residents. These
systems require funding for daily operational expenses and capital investment to maintain the infrastructure.
As part of the budget process, City staff work with consultants to review the rates charged for these services to
ensure that revenue is suf cient. This requires evaluating the future capital needs and funding plans, including
future debt issuances, to plan for expected rate increases. During the budget discussion, the City Council
evaluates the recommendations for rate changes based on the report from staff and the consultants.

The water and wastewater rates were reviewed and an update is included in the FY 2024-2025 budget. The
increase is primarily related to increased costs from the Trinity River Authority for water purchase and
wastewater treatment. The stormwater rate was reviewed, but no changes were proposed.

City of Bedford, TX | Adopted Budget FY 2024-2025 Page 33