Page 26 - Bedford-FY25-26 Budget

Sales tax — Monthly collections have increased about 2.5% 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 slightly increased for the coming 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 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.

Expenditures in the General Fund total $50,415,335 compared to $49,736,588 in FY 2024-
General Fund Expenditures —
2025. Some increases in base expenditures are included to fund contractual obligations that have already been
committed, continued operation of current programs. The main cost drivers came from increases in insurance, utilities,
and worker's compensation costs, and adding a new Neighborhood Services Of cer. Additionally, the base expenditures
were decreased by 4.57% in supplies, 6.94% in maintenance, and 0.88% in contractual services. Approximately $828,736 of
the increase comes from one-time purchases from excess reserves for such items as an ambulance remount, re
personal protective equipment, re body armor, the second half the ordinance update for neighborhood services, and
honor guard uniform and sidearm replacements for the Police Department. Ongoing revenues continue to exceed
ongoing expenditures.

Debt Service 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 2025-
2026 is $0.145266. Summary schedules and detailed information on individual bond obligations can be found in the Debt
section.

Enterprise Funds
Water & Sewer Fund
Water & Sewer Fund expenses are budgeted at $34,728,900 in FY 2025-2026 compared to $31,620,995 in FY 2024-2025.
The biggest increase is in water charges and sewer treatment costs from the Trinity River Authority (TRA). This increase is
related to rising costs to treat the water and sewer and in relation to the $68 million bond sale for the capital
improvement plan for TRA. Staff worked with consultants to update the utility rate model for FY 2025-2026. 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 proposed rates include a pass-thru increase of 9.7%
from TRA water rates and 14% for TRA sewer rates.

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.

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 2025-2026 is $1,990,000 and expenses are budgeted at $1,641,233. Ongoing expenditures
are relatively stable in this fund.

This enterprise fund was established for emergency and scheduled repairs of the water
Water Utility Repair Fund —
distribution system and the wastewater collection system. The funds are an established operating transfer from the
Water and Wastewater Divisions.

City of Bedford, TX | Proposed Budget FY 2025-2026 Page 26