Page 203 - Saginaw FY21 Annual Budget

CITY OF SAGINAW
STREET MAINTENANCE FUND

FUND DESCRIPTION
2020-2021

The State of Texas Tax Code allows Texas cities to raise their local sales tax rate by one-eighth of
one cent or one-fourth of one cent if the funds are dedicated to street maintenance and repair.
Cities may impose the tax with voter approval if the combined local sales tax will not exceed two
percent. Voters must approve the additional sales tax and the city's governing body must call the
election. The city administers the tax directly and accounts for the funds separately as required by
state law. The sales tax is restricted to use only to maintain and repair municipal streets and
sidewalks that existed on the date of the election and may not be used to build new streets.

The street maintenance sales tax expires four years after it takes effect unless voters approve
continuation in an election held for that purpose.

The citizens of Saginaw voted to approve a one-eighth of one cent (0.125) sales tax for the purpose
of street maintenance and repairs on May 12, 2007. Voters renewed the Street Maintenance Tax
for four years in November, 2011; May 2, 2015; and May 2019.

The City has been utilizing much of this revenue for reconstruction projects utilizing Tarrant County
Interlocal agreements. Additionally, the funds can be used on other street programs and street
maintenance materials such as asphalt and concrete. Staff has generated an electronic Street
Condition Survey along with a rating system which is used for planning and budgeting purposes.

Street projects for FY 20/21 include spot repairs to East Industrial Road, the reconstruction of Opal
Street from McLeroy to Ruidoso, and White Rock Drive from Longhorn to West Cliff Avenue.
Burlington Road will be reconstructed which was delayed from FY18/19.

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