Page 31 - Saginaw FY20 Annual Budget

CITY OF SAGINAW

BUDGET HIGHLIGHTS
2019-2020

ENTERPRISE FUND:

 The City of Saginaw purchases water from the City of Fort Worth. Fort Worth has
proposed a 10.49% decrease in wholesale water rates. This budget includes a 5%
decrease in water rates for our customers.

 The City of Fort Worth bills the City of Saginaw for wastewater treatment based on the
strengths and volume that pass through the system. Fort Worth has proposed a 3.44%
decrease in wastewater rates. There will be no change in the rates for our customers.

 The City will begin to replace current water meters with cellular meter technology.
Funding of $684,000 will replace 50% of the meters; the remaining meters will be
replaced in FY 2020-2021. The replacement is necessary because the current meters
are no longer available and the technology to read them will be phased out. The new
technology will allow instantaneous meter reading and will give our customers the ability
to monitor and track their water usage.

 The adopted budget includes $35,000 to replace a service truck, $35,000 to rehabilitate
five booster pumps, $4,200 to replace current backflow and industrial waste
management software, and $9,500 for a telephone utility bill payment system that was
delayed from the current year.

 An increase from $25 to $50 per month is included for employees with water and
wastewater certifications. The increase ($7,380) is proposed to remain competitive and
retain certified employees.

 A sewer line camera will be replaced ($110,000).

 An increase of $10,800 is included for water system maintenance and supplies. The
ongoing increase is for supplies needed to keep up with the residential growth of the
system.

 Construction for the Saginaw Boulevard 16” Water Line Phase 2 ($1,086,050) will be
funded with impact fess. Design and construction costs of $1,094,000 for the Fairmont
Sewer Rehabilitation Phase 1 project is included, as well as, $146,000 to solve issues
that were identified as part of the inflow/infiltration Study of West Cement Creek.

 The Texas Department of Transportation has notified the City of Saginaw that they
intend to proceed with construction of the FM 156 project. The City must relocate water
lines in the path of construction for a cost of $325,500.

 The City is required to abandon a water line and relocate a portion of a 12” sewer line
due to BNSF rail line extensions. Funding of $467,500 is proposed to fund this
requirement.

 The Enterprise Fund has been balanced with $2,219,130 of reserves for one time
capital items and capital projects.

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