Bedford City Council Approves FY 2026-2027 Budget and Tax Rate

The Bedford City Council unanimously approved the Fiscal Year 2026-2027 budget and a property tax rate of $0.566599 per $100 of taxable value during its Sept. 8 meeting.

For a home with the average taxable value of $319,630, the new rate is expected to increase the City portion of the property tax bill by approximately $11.18 per month, or $134.13 per year.

The budget was developed as the cost of providing City services continues to rise while revenue growth has slowed. Sales tax revenue has leveled off, home values have declined and approximately 36% of Bedford homes have an over-65 City property tax freeze. That means the remaining 64% of homes carry more of the burden for generating new residential property tax revenue.

Before seeking additional revenue, City staff reviewed expenses and identified potential reductions. Over the past several years, the City has reduced staffing, adjusted its vehicle fleet, changed electricity providers, reviewed insurance costs and pursued other operational efficiencies.

For the new budget, staff reduced expenses across more than 250 budget line items. Some individual expenses were cut by as much as 60%, while larger reductions totaled approximately $400,000, with additional savings throughout the budget.

The adopted budget funds Police and Fire services, street and infrastructure maintenance, and the replacement of aging equipment and technology. It also includes public safety equipment, replacement Police vehicles, Library repairs, sewer inspection equipment, winter weather response equipment and a 2% pay increase for City employees.

The average Bedford homeowner pays approximately $150.92 per month in City property taxes, or $4.96 per day. Of the monthly amount, about $50.05 supports Police, $32.89 supports Fire, $9.81 supports Parks and Recreation, $5.51 supports the Library, and $3.18 supports Fleet and Streets, along with other City services.