Page 18 - Saginaw FY20 Annual Budget

City of Saginaw 333 West McLeroy
P.O. Box 79070
Saginaw, Texas 76179
817-232-4640
Fax 817-232-4644
www.ci.saginaw.tx.us

CITY MANAGER’S BUDGET MESSAGE

September 2019

Honorable Mayor Todd Flippo, City Councilmembers, and Citizens of Saginaw:

In compliance with the State Statutes and the Charter of the City of Saginaw, I submit to
you the annual operating budget for fiscal year 2019/2020. This budget presents the
sources of revenue and the plan of expenditures for all areas of the Saginaw City
Government for the year beginning October 1, 2019, and concluding September 30, 2020.

This budget is presented after many hours of study and review by City staff and City
Council. Staff was asked to budget for what is necessary to maintain current service
levels and to make recommendations for anticipated increased service levels, both short
term and long term. These requests were prioritized and presented to the City Council in
a series of workshops throughout the spring and summer.

The annual budget is developed within the context of long-range and strategic planning.
These plans anticipate funding needs and available revenues and forecast methods for
matching future revenues and expenditures. Due to conservative planning on the part of
the City Council and Staff, the City has been able to absorb the impact of economic
swings. The City of Saginaw was fiscally conservative during the economic expansion.
Fund balances built up during the economic expansion have been available for one time
expenditures. One time expenditures are capital purchases and special requests that are
not of a recurring nature. General Fund balance at the end of FY 2019/2020 is projected
to be $9.3 million. The fund balance includes restricted resources, 25% of operating
expenditures, and reserved resources for the possible increased cost of the Bailey
Boswell Overpass project and an economic development incentive agreement, leaving
$1.4 million in unrestricted/unreserved resources.

In Texas and the Dallas/Fort Worth area we are seeing increased sales tax collections
from the previous year. The City of Saginaw sales tax collections have been steadily
increasing. We have considered this in estimating FY 2019/2020 sales tax revenues.
We are conservatively forecasting sales tax revenue to be 2% higher than estimated

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