Page 9 - FY 2026-2027 Adopted Budget Book

Transmittal Letter

September 15, 2026

Honorable Mayor, Council Members, and Bedford Community Members –

It is my privilege to present the budget for the City of Bedford's Fiscal Year 2026–2027. This budget reflects
our continued commitment to responsible financial stewardship, exceptional public service, and thoughtful
investment in the future of our community. More than a financial document, the annual budget represents the
City's priorities and serves as a roadmap for delivering the services, infrastructure, and programs that
residents rely on every day.

The City of Bedford has long been recognized for its conservative financial management and commitment to
maintaining a high quality of life. Those values continue to guide every budget decision. This year's budget
balances the need to preserve core municipal services with investments that strengthen our operations,
support our employees, and prepare the City for future opportunities.

Although economic conditions continue to present challenges for local governments, Bedford remains well
positioned for the future. Property tax growth continues to stagnate following changes in the Tarrant Appraisal
District's residential reappraisal schedule, while inflationary pressures continue to affect personnel costs,
health insurance, utilities, construction, and contracted services. Sales tax revenue has been relatively flat for
the year; however, the outlook for the coming year is more favorable.

City leadership has been active with several new businesses either starting in 2026 or anticipated in 2027. At
the former property, Sprouts will anchor a new development, The Market at Gateway, which should add
appreciated economic growth. H-E-B grocery store opened in the middle of 2026 which should increase sales
tax returns towards the end of the year into the next fiscal year. We expect several housing developments to
also advance in the coming year. Our economic development team continues their work to support the
modernization and revitalization of existing businesses while advancing redevelopment opportunities
throughout the city.

This budget reflects the City's Strategic Plan by directing resources toward initiatives that enhance public
safety through our Axon and Stryker contracts, preserve infrastructure through our continued renovation of the
Animal Shelter, strengthen neighborhoods by a dedicated line item to demolish substandard homes, improve
organizational effectiveness via enhanced training, all while maintaining the financial stability that residents
expect. Every expenditure has been evaluated not only for its immediate need, but also for its contribution to
Bedford's long-term success.

Our employees remain the City's greatest asset. Their professionalism, innovation, and commitment to public
service make it possible to deliver the high level of service our residents have come to expect. This budget
continues our commitment to attracting, developing, and retaining a talented workforce by continuing our
public safety step plans and a 2% cost of living adjustment for all employees.

The City also remains committed to long-term financial sustainability. Through conservative budgeting
practices, multi-year capital planning, responsible reserve policies, and prudent debt management, and
ongoing asset and infrastructure condition assessments, Bedford continues to maintain a strong financial
foundation that enables the City to respond to changing economic conditions while preserving service levels
for future generations.

FY 2026-2027 Adopted Budget Book · September 15, 2026 5