Bedford staff propose lean, balanced FY 2026–27 budget and modest tax increase

City staff presented a proposed fiscal year 2026–27 budget that officials described as "extremely lean" and intended to preserve core services while limiting tax impacts. Brady Myers, the finance lead, told the council the proposed plan is "a balanced budget" and emphasized it was the product of months of line-by-line review with every department.

Myers said the general fund increase — roughly $1.75 million — is concentrated in four major changes: a 2% cost-of-living adjustment for all employees, step increases for public safety, higher health-insurance costs and the recurring impact of two previously approved contracts for police and fire equipment. "We are proposing a budget of, 50 a little over 56¢, which is almost exactly a 4¢ increase over our rate last year," Myers said, noting the staff view that number as below the voter-approval threshold and a reasonable balance between service needs and taxpayer impact.

Why it matters: staff said the city faces constrained revenue growth — sales tax has flattened, and the taxable value for property dropped after appraisal protests — while fixed costs and infrastructure needs continue. Myers flagged a structural constraint unique to Bedford: about 36% of homes are on a senior tax freeze, reducing the share of properties that can generate new revenue. He told the council that, with the current proposal, the average taxable home would see a roughly $11 monthly increase under the proposed rate.

The council did not vote on the budget at the workshop. Staff laid out next steps: the council will set the maximum rate and hold a public hearing on the tax rate in early September, with a planned finance-day vote on the rate, budget and water/sewer rates on Sept. 8.