Page 35 - Bedford-FY25-26 Budget

Truth in Taxation
The ad valorem tax is a tax assessed on real property in order to provide a revenue stream for government operations. The tax
rate to fund the FY 2025-2026 budget is $0.526212 per $100 assessed valuation, which was presented to the City Council for
approval during the budget process.

The tax rate has two different sub-rates to support the main functions of the ad valorem tax:
The maintenance and operations, or M&O, rate is used to generate revenue for the General Fund to provide for
operations.
The interest and sinking, or I&S, rate is used by the Debt Service Fund to pay for the annual debt obligations for the City.

To determine the tax rates for FY 2025-2026, the Tax Assessor for Tarrant County utilizes information from FY2024-2025 and
from the estimated new property values developed during the current scal year.

The following are the rates established by the Tax Assessor:

No New Revenue Tax Rate $0.506800
No New Revenue M&O Rate $0.366474
Voter Approval Tax Rate $0.526212
Debt Rate $0.145266

Unadjusted Voter Approval Rate $0.604862
Sales Tax Adjustment Rate $0.078703
Voter Approval Rate, Adjusted for Sales
$0.526159
Tax
Senate Bill 2, also known as the Texas Property Tax Reform and Transparency Act of 2019, was passed by the Texas Legislature in
2019. At its most fundamental level, S.B. 2 reforms the system of property taxation in three primary ways: (1) lowering the tax
rate a taxing unit can adopt without voter approval and requiring a mandatory election to go above the lowered rate; (2)
making numerous changes to the procedure by which a city adopts a tax rate; and (3) making several changes to the property
tax appraisal process (Texas Municipal League). The bill took effect on January 1, 2020.

Previously, any rate adopted that exceeded the 8% rollback rate triggered the ability of citizens to petition to hold an election to
“roll back” the tax rate to the rollback rate. Generally speaking, S.B. 2 requires a city to hold an automatic election (i.e., the bill
eliminates the petition requirement) on the November uniform election date if it adopts a rate exceeding the 3.5% voter-
approval rate. See TEX. TAX CODE § 26.07.

Attached Document:
2025 Tax Rate Calculation Worksheet - Certi ed by the Tarrant County Tax Assessor-Collector on August 6, 2025.

City of Bedford, TX | Proposed Budget FY 2025-2026 Page 35