Page 18 - Saginaw FY19 Annual Budget

We are conservatively forecasting sales tax revenue to be 1% higher than estimated
collections for FY 2017/2018. Unemployment in the area remains low and in general
economic trends are optimistic but with a cautious outlook. The largest influence on the
City’s budget is the large increase in property valuation. Property values for the City of
Saginaw increased an average of 12.9%. The increase in property values means the City
can collect the same amount of property tax revenue as last year but at a lower rate. With
the adopted rate of 47.18 cents the average homeowner will pay $751.61 in property
taxes which is $34.80 higher than last year. The Dallas/Fort Worth area’s real estate
market continues to see high demand with a tight inventory. The City of Saginaw
continues to see new housing starts which adds to our tax base.

The main attractions to Saginaw are location, land availability, easy freeway access, good
schools, low tax rates, and the general quality of life. Alliance Airport, Meacham Airport,
Eagle Mountain Lake, the United States Currency Plant, Texas Motor Speedway and the
Fort Worth Stockyards are all within fourteen miles of Saginaw’s city limits.

With the City’s continued growth and increasing expectations of our citizens, the
challenges the City faces this year include maintaining current facilities, current service
levels and completing infrastructure improvements. The City is currently in the process
of revising our Strategic Plan, evaluating current service levels and proposed enhanced
services, evaluating current facilities and future facility needs, and updating the
Beautification Plan, Parks Master Plan, and completing phase 2 of the ADA facilities
evaluation. The key budget issues are:

 Adopting a tax rate that allows us to meet current service expectations, as well as,
meet voter approved debt service requirements.

 Provide a full year of funding for positons that were added during FY 2017/2018.
They include two part time management interns, a full time Economic Development
Director, a Police Department Dispatcher, and converting a part time Police
Records Clerk to full time.

 A Management Analyst is added to maintain current service levels in General
Administration. The position will provide assistance to both finance and city
secretary functions.

 Provide funding for needed public safety improvements including the upgrade of
the public safety radio system, an additional School Resource Officer, an additional
Jailer, and an additional Firefighter. The Eagle Mountain-Saginaw ISD will provide
funding for 50% of the School Resource Officer.

 Maintenance and upgrade of existing infrastructure (water, wastewater, streets,
drainage, and community facilities) include: Design Phase 2 of the Saginaw
Boulevard 16” water line. Construction of Phase 1 of the Fairmont 12” sewer
rehabilitation. Phase 2 of the Inflow and Infiltration Study and remediation projects
identified in the Phase 1 study. Utility relocations necessary due to the TxDOT

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