Page 25 - Bedford-FY25-26 Budget

This year, we are also closing and consolidating several funds that have historically reported separately in the budget, but
combined with the General Fund in the Annual Comprehensive Financial Report (ACFR). The goal of the new fund
structure is to better align the budget document to the ACFR.

Compensation/Bene
In FY 2016-2017, a Public Safety Step Plan was instituted for all sworn Police and Fire personnel. The proposed budget
includes modi ed the step plan to reduce the number of steps on the Police Of cer and Fire ghter/Paramedic level to
industry standards. This budget also includes the addition of a Senior Code Enforcement Of cer, and some position
reclasses, as well as the funding of a non-retroactive TMRS COLA to remain competitive with recruitment and retention.

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.
The budget includes an increase in Health Insurance premiums, which is shared between the City and the employee.

Staf { ng Level Changes
Each year, Departments evaluate their operations and evaluate staf ng needs. A detailed breakdown of all personnelM
changes can be found in the "Personnel Summary". Most changes in personnel were related to titles to align withM
industry standards.

Change to Funds
In the proposed budget, several funds have either been eliminated or consolidated for ease of tracking, control, and
reporting. These changes include the following:
Due to a change in State Law, the Court Security Fund and the Court Technology Fund were closed, the fund
balances were moved into a newly created combined Court Security and Technology Fund. Same restrictions apply
to the what the funding can be spent on.
The Computer Replacement Fund was moved from a Special Revenue Fund to an Internal Service Fund. The Library
Technology Fund was closed, and the fund balance was moved into this newly created internal service fund.
The Equipment Replacement Fund was moved from a Special Revenue Fund to an Internal Service Fund. The Water
Vehicle Replacement Fund was closed, and the fund balance was moved into the newly created internal service
fund.
The Facilities Maintenance Fund was moved from a Special Revenue Fund to an Internal Service Fund. The Library
Maintenance Fund was closed, and the fund balance was moved into the newly created internal service fund.
The Parks, and Aquatics Maintenance Funds were closed, and the respective fund balances were moved into the
General Fund.

General Fund
— The budget provides funding for continuation of all current programs and services. Revenue
General Fund Revenue
for FY 2025-2026 is budgeted at $49,589,910 compared to $47,206,689 in the FY 2024-2025 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 Operations and Maintenance (O&M) 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 proposed tax rate to fund the 2025-2026 budget is $0.526212, which is an increase from the prior year. The
number of properties eligible for over 65 tax ceilings increased from 4,608 in 2024 to 4,787 in 2025.

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 increased from the 2024 rate of $0.074808
to the 2025 rate of $0.077581.

City of Bedford, TX | Proposed Budget FY 2025-2026 Page 25