Bedford update: $17.1 million cash on hand; electric fund faces higher power and transmission costs

The presenter told the Bedford Town Council that the town's total cash across all funds was just over $17,100,000 and provided a fund-by-fund breakdown of where those reserves are held.

The presenter said roughly $4.0 million is in the town's checking account at Carter Bank and about $9.8 million is held at Truist. She said the largest fund balance is the electric fund, which stands at about $8.2 million, and that smaller amounts are set aside in the Cemetery Perpetual Care Fund, capital program reserves and a revolving loan fund (~$11,000).

Why it matters: the presenter noted the general fund's operating cash fell from the prior year mainly because American Rescue Plan Act funds previously held by the Bedford Regional Water Authority have been fully spent. The presenter summarized consolidated governmental-fund results for the quarter as roughly $5.7 million in revenue and $5.5 million in expenses.

The presenter highlighted several revenue trends: real-estate tax receipts were higher year over year (in part from supplemental billing and new-construction assessments), local sales taxes were slightly lower, meals and lodging taxes were slightly higher, and interest income declined (which staff linked to prior ARPA balances that had been earning interest). On state-sourced revenue, she reviewed the rolling-stock payment and the Personal Property Tax Relief Act (PPTRA) payment, noting PPTRA has been essentially frozen for decades and the town supplements relief locally for the first $20,000 of vehicle value.

On investments, staff said the town's roughly $9 million at Truist is earning about 3% and that recent quotes show potential alternatives of about 3.7% for a 12-month certificate of deposit or about 3.8% for a money-market account; staff said they plan to split funds to improve overall interest earnings and will allocate interest back to funds based on their proportional cash balances.

Enterprise fund pressures: the presenter said the electric fund's base sale-of-electricity revenue is down year over year while the "power cost adjustment" line is up, and that purchase power accounted for about 80% of operating costs. She said purchase power costs rose by roughly $1.0 million year over year and that transmission materials and supplies are tracking materially above the annual budget (budgeted around $167,000 versus about $311,000 spent through midyear), which staff said they are watching closely.

Staffing and customers: the presenter reported the town gained about 100 electric customers year over year (to roughly 7,070 customers) and noted that two full-time employees handle utility billing, which can strain call-volume capacity; council members said staffing and budget prioritization will be part of future discussions.

Quotes: the presenter said, "The total cash across all funds of the town was just over 17,100,000." She also warned, "We had around a $1,000,000 increase year over year associated with [purchase power] cost," and flagged that transmission supplies had exceeded budgeted amounts.

Next steps and context: staff placed high-level financial reports on the town's public website for council review and encouraged members to request details on specific line items. Council members asked about reassessment timing (county reassessment expected to be effective in 2027), the future of PPTRA funding, and possible investments such as advanced metering infrastructure and higher-yield bank products. The presentation concluded without recorded motions or votes in the transcript.

The presenter provided contact information for follow-up questions and the meeting adjourned shortly after the presentation.