WACO, Texas (KXXV) — Waco's City Manager Bradley Ford earns nearly $468,000 a year, making him one of the highest-paid city managers in Texas. At the same time, Waco has a $1.7 billion debt. City officials say most of this debt (72%) is paid through service fees, not property taxes. The average Waco homeowner pays about $28 per month toward the city's debt. Mayor Jim Holmes defends Ford's high salary, saying it reflects the city's complex needs.
- Waco City Manager Bradley Ford is among Texas' top 10 highest-paid city managers, earning a base salary of $371,495 and total compensation of approximately $468,000 last year.
- The city of Waco currently faces a debt of $1.7 billion, though officials state 72% of this debt is funded through user fees rather than property taxes.
- The average Waco homeowner pays about $28 per month toward the city's debt service, which represents $340.61 of their annual $1,508.27 city property tax bill.
- City officials have identified more than 70 full-time positions to eliminate and achieved over $27 million in recurring expense savings over the past two years.
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BROADCAST TRANSCRIPT:
Waco City Manager Bradley Ford ranks among the top 10 highest-paid city managers in Texas, earning a base salary of $371,495 set by the city council. His total earnings last year reached approximately $468,000.
Ford's compensation includes additional provisions provided by the city council, such as a car allowance and contributions to a deferred compensation plan.
"The compensation level recognizes Waco's place in the region and the state as a truly full-service city," Ford said in a statement.
When asked about the city manager's salary of around $400,000, Waco Mayor Jim Holmes defended the compensation.
"Our city manager and city management team, very good team, again we ask them to do a lot, not only manage the city, but all these regional enterprises. They're the top tier of cities, Dallas, San Antonio, Austin, Fort Worth, we're not in that tier yet," Holmes said.
By comparison, Waco City Council members earn $1,650 a month, amounting to just under $20,000 annually.
The city currently faces a debt of just over $1.7 billion, but Mayor Holmes says there's no direct connection between city leader's salaries and the debt.
"They're not really related because we have administrative expenses and operating expenses, the debt is mostly related to specific projects, specific roads, specific water treatment plants, water lines, large street and road projects," Holmes said.
According to Waco Assistant City Manager and Chief Financial Officer Blu Kostelich, the total outstanding debt is $1,736,275,817 (principal of $1,129,117,949, plus interest of $607,157,868).
"However, it's crucial to understand that the majority of this debt, 72%, is not paid through property taxes at all. Instead, it's funded through user fees that residents pay for water, sewer, drainage, solid waste services, and special investment zone revenues. This means people who use these services pay for the infrastructure that serves them directly," Kostelich said.
Property taxpayers will fund $482,997,180 ($323,830,000 principal and $159,167,180 interest) over the next 29 years. In the upcoming fiscal year (FY 2026), $25,553,659 from total property tax collections will go toward debt payments.
In 2026, the average single-family residence will pay $1,508.27 in city property taxes. Of this amount, $1,167.66 supports the General Fund, which funds essential city services including police, fire, emergency management, municipal court, street maintenance, development services, libraries, parks, animal services, and administrative functions.
The remaining $340.61 will go toward paying off the city's debt, or about $28 per month.
Ford provided data showing Waco's debt per capita is lower than the average of nearby cities.
"Over the past two years, my team and I have dug deep across all of our functions to identify expense reductions in our budget. The economic climate has called for it, and we have risen to the task, identifying more than 70 full-time positions that we are no longer funding and more than $27 million in recurring expense savings," Ford said.
He also noted that the city's debt is rated AA+, the second-highest rating available.
"We are on the path to achieving a AAA bond rating in the near future. This indicates that credit rating agencies see the city as a very low credit risk and that we have a strong capacity to repay our debts," Ford said.
When Ford was asked this question, "Some citizens feel the reason we are in debt is because of the salaries of our city manager and other city employees like our assistant city manager, what is your response to this?"
He responded with this statement:
I understand and value the residents' deep care about how public funds are spent. Transparency and fiscal responsibility are priorities we share.
Cities finance their capital improvements with a mix of cash and debt. In recent years, the City Council has made a concerted effort to rebuild hundreds of millions of dollars of streets, fire stations, fire apparatus, water, wastewater, parks, community centers, the animal shelter, and many other investments. That has increased our debt and also delivered key services that a vibrant city needs.
Our city's debt has the second-highest rating available, rated at AA+, one notch below "AAA," and we are on the path to achieving a AAA bond rating in the near future. This indicates that credit rating agencies see the city as a very low credit risk and that we have a strong capacity to repay our debts.
Even with a strong capital improvement program over the last few years, our city's debt per capita in the most recent year available remains lower than the average of our peer cities (shown in the graphic below). The City Council watches this metric along with others to ensure we are strategic as we continue on a capital improvement spending effort.
Ford also included information on where the city's finances are headed.
Waco has a multi-billion-dollar infrastructure backlog. The streets and bridges requiring rehabilitation and/or replacement far exceed our funding ability in the next 20 years.
People talk about rebuilding Texas Central Parkway. That project alone will cost $60 million. When you consider other projects with very large price tags (Bosque Blvd., Flat Rock, Speegleville Rd., and hundreds of residential streets), the scale of this infrastructure backlog becomes more clear. We will continue to need to access debt to make further progress in rebuilding these assets.
I will close with a salient point about the role and value of a City Manager. Over the past two years, my team and I have dug deep across all of our functions to identify expense reductions in our budget. The economic climate has called for it, and we have risen to the task, identifying more than 70 full-time positions that we are no longer funding and more than $27 million in recurring expense savings.
These savings allow us to spend more of our budget proportionally on capital improvements, eliminating the need to consider tax rate increases to fund these improvements. It also allows us to have a General Fund expenditure budget that is 6% lower than last year's while serving an ever-growing population and economy.
For more information on City of Waco finances, click here.
You can view the 2025 payroll budget here.
You can view the 2025 CIP Debt Plan of Finanance here.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
