Bedford council adopts FY2025–26 budget, approves 50% TMRS COLA and voter‑approval tax rate

The Bedford City Council on Sept. 9 adopted the city’s fiscal year 2025–26 budget, approved a 50% cost‑of‑living adjustment (COLA) for retirees in the Texas Municipal Retirement System (TMRS) and set the voter‑approval tax rate at 0.526212 per $100 of assessed value.

Council members said the budget balances employee pay increases and operational needs while identifying one‑time and ongoing funding changes. Finance Director Brady Olson said the adopted plan includes a 3% COLA for active employees, consolidations of several funds and proposed transfers to keep recurring revenues above recurring expenditures.

The vote followed public testimony urging stronger retirement and retention measures for public safety staff. “Do you want the turnover to continue and have 5 year officers responding to calls, or would your other people come here, work here for 20 years, and retire?” asked Zach Hicks, who identified himself as a past president of the Bedford Municipal Police Association and current president of the Texas Municipal Police Association.

Resident Steve Hall also addressed the council during the budget public hearing, saying, “I recommend that you approve the proposed budget with one caveat. I’m here to support the TMRS COLA at a 50% rate.” Council members repeatedly referred to recruitment and retention concerns raised by those speakers as central to the COLA decision.

Council discussion touched on funding mechanics. Olson presented cost estimates for the 50% TMRS option — roughly $263,000 to the general fund, about $26,000 to the water and sewer fund and under $2,000 to other funds — and outlined a proposed funding package that included using bond funding as a onetime source and shifting some street‑lighting expenses between the 4B street fund and the general fund. Council members said those shifts and other accounting changes made the 50% option feasible for the coming year.

Mayor Pro Tem Dawkins made the motion to adopt the tax rate of 0.526212; the motion and the budget motion (which adopted the 50% TMRS COLA) passed unanimously. Council also adopted the related resolution ratifying the property tax increase as required by state law.

The budget package includes: a three percent COLA for employees, the chosen 50% TMRS COLA for retirees, consolidation/closure of several special funds with their balances shown as committed to the original purposes, capital projects including Brown Trail and Gregory and Bedford Court improvements, and the removal of a proposed street sweeper purchase from the capital list.

The council set a public hearing as part of the budget process and adopted both the budget and the tax rate during the Sept. 9 meeting; staff said the TMRS implementation details will be returned to council on Nov. 18 for any final technical changes.

For residents, Olson said the adopted tax rate will raise the average homeowner’s tax bill by about $7.37 per month under the new rate; a senior in the first year of exemption would see a $6.10 change but seniors age 66 and older have a tax freeze provision the staff noted. Olson also said changes to water and sewer rates were adopted separately at the meeting (see Votes at a glance).