Bedford city approves budget with level tax rate

By: Justin Faulconer | The News & Advance
Published: June 09, 2010

BEDFORD — Residents in Bedford will pay the same real estate tax rate in the next fiscal year but the city’s government will collect additional revenue due to property values rising by about 4.5 percent.

Bedford City Council voted Tuesday to approve a 2010-11 budget with a general fund of just more than $16 million — a decrease of more than 5 percent from the current year. The financial plan includes funds for solid waste, water and sewer, electricity and capital projects that total a combined $59.5 million.

The budget will provide residents and businesses with “an adequate level of municipal services” and maintains “core programs and activities,” Bedford City Manager Charles Kolakowski said in a presentation to council last month.

There are no across-the-board salary increases included for more than 100 employees. One full-time position will be eliminated and another position will be frozen.

“It’s been a painful time, to say it truthfully,” said Bedford Mayor Skip Tharp, adding the council did not feel good about denying pay raises. “It’s the economic times we live in. We’re doing the best we can with what we have to work with.”

Council voted to set a real estate tax rate of 86 cents per $100 of assessed value, the same rate as the current year. Tharp said the rate “in reality” is a tax increase because property values have jumped because of a recent property reassessment, which means the city will collect more revenue.

A rate of 82 cents per $100 would have been necessary to levy the same tax collections based on the increased property values.

Spending for solid waste is set at roughly $1 million and electricity costs at $23.6 million — each is about a 3.7 percent decrease from the current year. The city’s water and sewer fund of $11 million is a slight increase.

Capital spending for the general fund, solid waste, electricity and water and sewer combined totals $7.7 million. The budget includes an increase in customer charges on electric bills that will average less than 1 percent, a 2 percent increase in water rates and a 4 percent increase in sewer rates.

Kolakowski has said additional money from water and sewer rate increases is needed for debt service payments on upgrades to Stoney Creek Reservoir, the city’s water source.

The budget becomes effective July 1.