Page 26 - Saginaw FY20 Annual Budget

CITY OF SAGINAW

BUDGET HIGHLIGHTS
2019-2020

The following is a brief overview of the adopted 2019-2020 budget:

GENERAL FUND:

 Saginaw continues to see growth in population and the estimated net taxable value
compared to July 2018 has increased by 15.3%. With nine residential subdivision
phases under construction, we are anticipating continued growth during the 2019-2020
fiscal year. The average new home permit value is currently $296,833.

 Saginaw’s population has grown from 12,374 in 2000 to 19,806 per the 2010 census.
The estimated 2019 population is 22,380.

 Property tax values are up. The July certified estimated net taxable value from TAD is
$2,125,956,763. This is an increase of $282,499,333 over last year’s July estimated net
taxable value of $1,843,457,430. We had a total of $63,147,306 in added value from
new construction ($50,390,128 in residential and $12,757,178 in commercial). New
construction for 2018-2019 was valued at $58,928,786.

 This budget is based on a tax rate of 0.459000 which is 1.28 cents lower than last year’s
rate of .471800. The rollback tax rate is 0.469175.

TAX DEBT M&O SALESTAX
YEAR RATE RATE ADJUSTMENT TOTAL AVG. TAX
2018 .180671 .291129 (.084777) .471800 $751.61
2019 .177345 .281655 (.078581) .459000 $804.34
DIFFERENCE OVER (UNDER) LAST YEAR (.023200) $ 52.73

 The average taxable single family home value in 2018 was $159,306. The average
taxable single family home value in 2019 is $178,105, an increase of 11.8%. Due to the
10% cap on increased values in a year, the average homeowner’s city taxes will
increase annually $52.73 from $751.61 to $804.34 or $4.39 per month. For $67.03 per
month the average citizen of Saginaw receives police protection, fire protection, public
services, parks, recreation, library services, animal services, and code enforcement and
inspection.

 Sales tax revenue has fluctuated from month to month but overall is up by 7% over the
current year budget. We estimate that we will receive $5,070,880 in sales tax revenue, a
2% increase over our year end projection. The current sales tax rate is 8.25%, which is
the maximum rate allowed. Of this, 6.25% goes to the State, 1.5% to the General Fund,
0.375% to the CCPD Fund, and 0.125% to the Street Maintenance Fund.

 Estimated increases in utility franchise fees are partially offset by a decrease due to
Texas Senate Bill 1152 which allows cable and telephone companies to stop paying the
lesser of their cable franchise or telephone access line fees. The estimated loss is
$56,000. Franchise fees for cable television has been declining and the estimates
reflect the trend to other entertainment options.

 The projected $55,000 decrease in court fines and fees reflect the decrease in the
number of tickets written.

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