Page 20 - Saginaw FY20 Annual Budget

will be partially funded by the City of Lake Worth and will assist both Cities in
emergency preparedness.

 Maintenance and upgrade of existing infrastructure (water, wastewater, streets,
drainage, and community facilities) include: Construction of Phase 2 of the

Saginaw Boulevard 16” water line. Construction of Phase 1 of the Fairmont 12”
sewer rehabilitation. Phase 1 of the Inflow and Infiltration and remediation projects
identified in the study. Utility relocations necessary due to the TxDOT expansion
of FM 156 and the BNSF railroad track expansion. Street repairs will be made on
Hialeah Park, South Hampshire, Arcadia Street, Normandy Court, and Georgian
Road. Burlington Road will be reconstructed. Construction of the Bailey Boswell
Overpass will begin. Design will be completed for Phases 2 and 3 of the East

Cement Creek Drainage Project and Phase 2 construction will begin. At the

Recreation Center light fixtures in the gymnasium will be replace, as well as, the
dividers in the multi-purpose rooms. Animal cages will be added in the animal
shelter.

Other major issues in each of the operating funds of the City are outlined as follows:

GENERAL FUND

This year our estimated General Fund Revenues total $16,876,415. Expenditures total
$17,605,495. The difference of $729,080 will be funded using existing fund balance. The
draw-down of fund balance will be used for non-recurring and one-time capital purchases.
Our ending balance on September 30, 2019 is estimated at $10,069,565.

The two major sources of revenue consist of $5,070,880 from sales tax revenue and
$5,987,865 from ad valorem tax revenue. The 2019 taxable value is $2,125,956,763 and
reflects $63,147,306 in new construction. The taxable value increased by 15% this fiscal
year. The approved budget is based on a 2019 tax rate of $0.459000, which is 2.32 cents
less than the 2018 rate of $0.471800, with $0.281655 for maintenance and operations,
and $0.177345 for debt service.

Sales tax revenues fluctuate from month to month. We estimate that we will receive

$5,070,880 in sales tax revenue, which is a 2% increase over the amount we expect to
collect in FY2018-2019. We use a conservative approach in projecting this volatile
revenue source.

General Fund expenditures decreased by $436,540 or 2% when compared to the
previous year’s revised budget. The decrease is due to one-time items in the FY 2019-
2020 budget being less than those included in FY 2018-2019. The changes by
department are described below.

A separate document (Budget Guidelines) is prepared for Department Heads and
identifies the expenditures by account number with explanations for each. The FY 2018-
2019 General Fund Revised Budget is $18,042,035. The approved 2019-2020 budget is

20