Page 27 - Saginaw FY19 Annual Budget

CITY OF SAGINAW

BUDGET HIGHLIGHTS
2018-2019

 The cost of employee health insurance will remain the same. We will continue our
coverage with United Health Care for the coming year. We have used an estimated
increase of 20% for dental insurance. The Insurance Review Committee will make a
recommendation on dental coverage after the bids have been received and reviewed.
The estimated increase in the General Fund is $8,722 and $1,550 in the Enterprise
Fund. The City will continue to provide a $365 per month contribution for dependent
coverage. After reviewing proposals for dental coverage the Insurance Review
Committee recommended United Health care for dental coverage. United Health Care’s
proposal will keep the cost of dental coverage the same as the previous year and
reduce the cost of health insurance by 1%. The dental rates will be fixed for a two year
period. The Committee’s recommendation was approved by the City Council.

 The adopted budget includes raising the TMRS contribution rate from 6% to 7%
beginning January 1, 2019. The 7% contribution rate is consistent with surrounding and
similar size municipalities. In order to retain and attract qualified employees our
compensation and benefit package must remain competitive. The employee contribution
rate will also increase by 1%. The budget includes a temporary 1% payment to
employees to offset the cost of the increase. The 1% will be paid each pay period but
will not increase the employee’s salary or the overall pay plan. The 1% payment is not
anticipated to continue beyond the fiscal year. It is proposed as a way to avoid a 1%
decrease in the employee’s pay check. It is anticipated that the increased contribution
rate in future years will be offset by merit increases that are not included in this year’s
budget. The cost of the TMRS rate increase is estimated to be $230,676 in the General
Fund and $26,086 in the Enterprise Fund. The cost of the employee’s 1% share is
$71,342 in the General Fund and $7,950 in the Enterprise Fund.

 The adopted budget includes continued funding for two intern positions ($55,690) and
the addition of a Management Analyst position ($67,841). These positions will assist all
City departments with special projects and provide additional help as needed. One of
the intern positions will be 50% funded by a grant from the University of North Texas.
Funding for 50% of one intern will be from the Enterprise Fund due to anticipated
projects with utility billing.

 Funding is included for the necessary advertising and election expense anticipated for a
City Charter election ($50,000). The Charter Review Committee is meeting monthly and
will make recommendations in time for the May 2019 election.

 A $10,000 contribution to the 6 Stones program is included to provide assistance in
home revitalization. This is a volunteer organization that partners with business and
nonprofit organizations to provide assistance to those in need of home repairs.

 An electronic time keeping system for public works is 50% funded in the General Fund
and Enterprise Fund. This will link a time clock to the payroll system to provide
increased efficiency and accuracy. The total cost is $10,000.

 Funding for work space and lobby improvements at City Hall are included for a total of
$8,200.

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