Page 19 - Southlake FY21 Budget

forecasting sales tax revenue to be $5.4 million, which is slightly lower than current year
estimates. Unemployment in the area remains low and in general economic trends are
optimistic but with a cautious outlook. Given the city’s diverse tax base and essential food
manufacturing industry the pandemic has not had a significant financial impact. Another
large influence on the City’s budget is property valuation. Property values for the City of
Saginaw increased an average of 3.4%. The increase in property values means the City
can collect the same amount of property tax revenue as last year but at a lower rate. With
the adopted rate of 46.1579 cents the average homeowner will pay $868.23 in property
taxes which is $50.73 higher than last year. The Dallas/Fort Worth area’s real estate
market continues to see high demand with a tight inventory. In the City of Saginaw we
anticipate residential building to slow but mixed use developments will begin construction
which will add to our tax base.

The main attractions of Saginaw are location, land availability, easy freeway access, good
schools, low tax rates, and the general quality of life. Alliance Airport, Meacham Airport,
Eagle Mountain Lake, the United States Currency Plant, Texas Motor Speedway and the
Fort Worth Stockyards are all within fourteen miles of Saginaw’s city limits.

With the City’s continued growth and increasing expectations of our citizens, the
challenges the City faces this year include maintaining a competitive compensation plan
for employees, maintaining current service levels, replacing the outdated Central Fire
Station, and planning for infrastructure improvements. The City is in the process of
evaluating capital projects for a future bond election. The key budget issues are:

• Adopt a tax rate that allows us to meet current service expectations, as well as,
meet debt service requirements.

• Retain and recruit quality employees in all departments: The City’s most valuable
asset is its employees. Approximately 14% of our employees have been with the
City twenty years or more and are eligible for retirement under the City’s retirement
plan. Another 14% have been with the City a minimum of fifteen years and will be
eligible for retirement in five years or less. A considerable amount of knowledge
about the City, its history and operations will be lost. It is extremely important that
the City continue to offer competitive salary and benefits in order to hire and retain
quality employees. A 3% salary adjustment is funded for all pay grades. Funding
is also provided for a tuition reimbursement program and an employee recognition
events.

• Provide cost effective funding for employee insurance benefits. A close look was
given to the cost of health insurance benefits. A consultant was hired to
competitively bid insurance coverage. We were able to realize substantial savings
over the next two years while maintaining current insurance options and coverage
levels.

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