Page 18 - Southlake FY21 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 2020

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 2020/2021. 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, 2020, and concluding September 30, 2021.

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. With the uncertainty of the impact of the COVID-19 pandemic the
priority was maintaining current service levels. 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 projects, special requests
that are not of a recurring nature, and development agreements. General Fund balance
at the end of FY 2020/2021 is projected to be $9.1 million. The fund balance includes
restricted resources, 25% of operating expenditures, and reserved resources for an
economic development incentive agreement, leaving $3.4 million in
unrestricted/unreserved resources.

The City of Saginaw sales tax collections have been steadily increasing. During the
COVID-19 restrictions we saw further increased in collections. We have conservatively
estimated FY 2020/2021 sales tax revenues to discount these anomalies. We are

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