Page 24 - Bedford-FY25-26 Budget

Executive Overview

Fiscal Year 2025-2026 Financial and Economic Outlook
The nancial plan as presented in the operating budget should be considered from the broad perspective of the speci c
environment within which the City operates. The City of Bedford is located in the center of the Dallas-Fort Worth
Metroplex. The City encompasses 10.1 square miles and is 98% developed. The 2020 Census re ects a population of 49,928,
with the 2025 estimated population of 49,941. The net taxable assessed value of property within the City increased this
year to $6,758,161,241. This represents an increase of $38,659,583, or 0.58%, in taxable value compared to FY 2024-2025.

A signi cant portion of the City’s general operating revenue is derived from sales tax and efforts to maintain and grow the
sales tax base are a high priority. As a policy, the City strives to attract high quality, visually appealing businesses, as well as
revitalize and invest in areas that have seen some deterioration of economic activity.

Planning for the Future
Current long-range nancial planning primarily revolves around several major water/sewer system infrastructure projects,
as well as signi cant improvements to the stormwater drainage system. Staff continue to evaluate facility needs. In 2023
and 2024, City Council approved the issuance of Certi cate of Obligations to fund a new Central Fire Station, a remodel of
Station 2 and Station 3, the purchase and subsequent remodel of the facility for our Seniors, and remodel of the Animal
Shelter.

As the City approaches full build out, planning tools such as the Master Highway Corridor Overlay District and other
planned programs provide for re-development of certain aging corridors within the City. Maintenance funds have been
established for capital assets, recognizing that a scheduled maintenance, repair and replacement program provides for
the best utilization of nancial resources.

The City Council approved the design standards for a proposed 100-acre development called Bedford Commons, which is
envisioned to be a mixed-use residential and retail development bordered by Forest Ridge Drive on the west, Bedford
Road on the north, Central Drive to the east, and Highway 183 to the south. The Bedford Commons footprint is adjacent to
the Cultural District, which was established by the City Council in 2011. The City has approved a Tax Increment
Redevelopment Zone (TIRZ) for that area to aid in development.

Financial Highlights
The total proposed budget for FY 2025-2026, including capital purchases, Street Improvement Economic Development
Corporation maintenance projects, debt service and transfers between funds, is $104,365,070. This represents a decrease
of $687,363, or 0.65%, when compared to the amended budget for FY 2024-2025. While the FY 2024-2025 budget was
amended, the amendments were for one-time items in the current scal year. The budget addresses staff retention and
maintenance needs for the City.

Funding Priorities
Funding priorities are established each year based on City Council goals and objectives. The process of making funding
decisions begins with staff budget analysis of budget history and trends, reviewing current year initiatives, status of year-
to-date spending, and identi cation of major challenges that will be faced in the upcoming scal year.

The top priority is to ensure we continue to provide the same level of services for our residents, and to provide increased
or expanded services where needs are identi ed.
Another top priority of the City of Bedford is our employees. One of the strategic initiatives under Area 4 - Organizational
Excellence of the City's Strategic Plan is to invest in staff and create a high performing organization. This year's budget
includes funding a non-retroactive repeating cost-of-living adjustment for retirees at 50% of the in ation rate (TMRS
COLA). This enhancement to our retirement plan will help the City of Bedford's employee recruitment and retention. This
is the last year that the City can adopt the new non-retroactive repeating COLA option, under state law.

We experienced some budget challenges this year. The Tarrant Appraisal District's re-appraisal plan froze residential
appraisals until 2027. Residential properties make up over 75% of our total taxable properties, and nearly 65% of taxable
value. Because of this new re-appraisal plan, the City's estimated net taxable values only grew by 0.58% from FY 2024-
2025 to FY 2025-2026, compared to 6.09% growth from FY 2023-2024 to FY 2024-2025.

In an effort to keep costs down, city departments reviewed historical averages and made budgetary reductions. This
resulted in savings of $76,353, or 4.57% in supplies, $79,490, or 6.94% in maintenance, and $56,144, or 0.88% in contractual
services, for a total of $211,987.

City of Bedford, TX | Proposed Budget FY 2025-2026 Page 24