Page 33 - Bedford-FY25-26 Budget

Water & Sewer Fund

PROCEDURE
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 proposed budget. The
proposed increase is primarily related to increased costs from the Trinity River Authority for water purchase and
wastewater treatment.

METHODOLOGY
The Water & Sewer Fund’s major revenue sources include the water charges and sewer charges collected from
utility customers. The revenue projections presented in the forecast are based on an analysis of the current
rates for these services and estimations of future rate adjustments on the amount of water sold or wastewater
treated. These estimations take into account the historical amount sold and assume 1% growth in residential
customers each year.

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 of all expense line items, excluding personnel services, water purchases, sewer treatment,

City of Bedford, TX | Proposed Budget FY 2025-2026 Page 33