Page 32 - Bedford-FY25-26 Budget

Property values are projected to increase an average of 3.5% from FY 2027 – FY 2031. 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 2.75% 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 forecast
results. The average forecast for all expense line items, excluding payroll-related expenditures, is to increase 1%
per year. The model also takes into account the future plans for speci c line-items discussed during the FY
2025-2026 budget work sessions, including moving the funding for street lighting from the General Fund to
the Street Improvement Economic Development (SIEDC - 4B) Fund in FY 2026-2027, and that the Stryker EMS
Plus agreement will be funded from the General Fund beginning in FY 2026-2027.

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 adopted budget for FY 2025-2026.

City of Bedford, TX | Proposed Budget FY 2025-2026 Page 32