Page 49 - Saginaw FY19 Annual Budget

CITY OF SAGINAW
5-YEAR FUND SUMMARY
2018 - 2019
Explanation of Variances

Note 1 - The General Fund surplus is due to increased sales tax collections, municipal court fines and fees, building permits and
construction inspection fees, as well as, savings in gasoline expense and the delay of an economic development incentive loan. The
increase is partially offset by the transfer to create the General Escrow Fund. The surplus of $5,722,205 in the Capital Projects Fund is
due to bond sale proceeds that will be used in future years for the Bailey Boswell Road construction project. The $407,356 deficit in the
Drainage Utility Fund represent the use of fund balance for the Saginaw Boulevard System 2 drainage project. The surpluses in the two
escrow funds represent the transfers to create the funds. The $587,166 surplus in the Enterprise Fund is due to the delay of the 24"
Trunk Main Replacement and the Watson/Lawson 8" Water Line projects. The surplus is partially offset by the transfer to create the
Water/Wastewater Escrow Fund.
Note 2 - The $899,323 surplus in the General Fund is due to increased collections for building permits, construction inspection fees,
electric provider franchise fees, increased property tax collections due to increased property values, and a savings in gasoline expense.
There was a planned draw down of fund balance in the Debt Service Fund in addition to debt issuance costs for a bond refunding. The
$2,232,560 deficit in Capital Projects represents the use of bond funds issued in the previous year for the Bailey Boswell Road project.
Planned developer contributions towards future road work contributes to the $647,002 surplus in the General Escrow Fund. The deficit in
the Water/Wastewater Escrow Fund is due to collections of impact fees from previous years being used to fund the SE 24" trunk main
and the Saginaw Boulevard Phase 1 water line.

Note 3 - The $955,543 surplus in the General Fund is due to increased sales tax and the delay of an economic development incentive
loan. There was a planned drawdown ($153,288) of fund balance in the Debt Service Fund. The $2,030,900 surplus in Capital Projects
Fund is due to the issuance bonds and the construction delay for the Bailey Boswell Road project. One time capital purchases are
funded with previous collections in the CCPD Fund, resulting in a deficit of $69,881. The $559,198 surplus in Drainage Utility reflects
the $1 per month fee increase. Fund balances in future years will be used for drainage construction projects. The $168,378 surplus in
the Street Maintenance Fund is due to increased sales tax and the delay of several street maintenance projects.The $298,180 increase
in the Water/Wastewater Escrow Fund is due to increased collection of water impact fees as a result of increased construction activity.
Note 4 - The $1,985,615 deficit in the General Fund is for one time capital purchases including the replacement of a fire engine, a new
public safety radio system, and traffic signals at McLeroy and Knowles and Basswood Boulevard and Bailey Boswell. There is a
$200,000 planned drawdown of fund balance in the Debt Service Fund. The $6,211,970 deficit in Capital Projects Fund is due to use of
previously issued bonds for the construction of the Bailey Boswell Road project. The $210,645 surplus in Drainage Utility reflects
estimated collections. The fund balance in future years will be used for drainage construction projects. The $209,015 surplus in the
General Escrow Fund is due to a developer contribution for the future improvements to Old Decatur Road. The $704,000 deficit in the
Water/Wastewater Escrow Fund is a result of using previously collected water impact fees for the South Hampshire 16" waterline and
the Saginaw Boulevard 12" water line phase 2 projects. The $880,605 deficit in the Enterprise Fund represents the use of fund balance
for the Park Center elevated storage tank repair and resurfacing.
Note 5 - The $885,540 deficit in the General Fund is for one time capital purchase and projects including the replacement of the Fire
Department's self contained breathing apparatus, a Fire rescue vehicle, expenses related to a charter election, and the City match for
Project Dream Play, an all abilities playground. The $405,000 deficit in the Capital Projects Fund is planned expenses for the Bailey
Boswell Overpass project being funded with previously issued bonds. The $190,940 deficit in the CCPD Fund is for the replacement of
four patrol vehicles. The planned drawdown in the Street Maintenance Fund is for the reconstruction of Burlington Road and railroad
crossing improvements. There is an expected surplus in the Enterprise Escrow Fund due to the collection of water and wastewater
impact fees due to new construction that will be used for eligible projects in future years. The planned drawdown of the Enterprise Fund
is for capital projects to remedy inflow and infiltration of the wastewater system, design for the Saginaw Boulevard 16" water line phase
2, the construction of the Fairmont sewer rehabilitation phase 1, and the relocation of utilities along FM 156 in preparation of the Texas
Department of Transportation road project.

49