Dramatic changes at the Tarrant Appraisal District (TAD), which were approved Friday, could force the City and other local taxing entities to start raising the Residential Tax Rate to compensate for the financial demands of future budgets.  Deputy City Manager Caryn Riggs, in a more comprehensive segment of the City’s presentation to the Council, explained that Residential Property Values will “hold flat until 2027” with TAD going from annual appraisals to appraisals “every other year, on odd years.”  But, she said, “They will reappraise multifamily, they will reappraise commercial and any new value added,” such as “any new addition to your home.”  This modification in TAD’s process, she sarcastically understated, could “make budgets in the next couple of years a little challenging.”Riggs added TAD’s changes will introduce further challenges for the City in determining the annual budget with property values now frozen at a 5% limit for increases, not for each year, but at the same threshold for two years at a time.

Budget Breakdown

For the coming year, Riggs listed several items that contributed to the increase in the budget.  An “across the board” 3% cost of living increase for employees, topped her list, followed by “funding public safety step increases” and higher general expenses, such as the cost of fuel, mowing services and utilities.”  Riggs also pointed to increases in premiums for property and worker’s compensation insurance, as well as funding for operating the new Senior Center at the old YMCA, once it opens after the ongoing renovation.

Based on figures provided by Riggs, each Bedford household will pay an average of $1,588.46 to support the City’s budget in the coming year.  That figure is based on the Average Taxable Value of $320,431 per household, according to her numbers.  Of that amount, nearly 28% will fund the police, 22% will go to pay for the fire department and 15% for debt service.