Page 37 - FY 2026-2027 Adopted Budget Book

Water & Sewer Fund

Procedure

The City of Bedford maintains Water and Sewer 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 sufficient. 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 0.5% growth
in residential customers each year.

FY 2026-2027 Adopted Budget Book · September 15, 2026 33