Page 27 - Southlake FY21 Budget

CITY OF SAGINAW
BUDGET HIGHLIGHTS
2020-2021

 There are estimated decreases in utility franchise fees due to more moderate weather;
warmer winter months and not as hot summer months. Franchise fees for cable
television have been declining and the estimates reflect the trend to other entertainment
options, as well as, the impact of Texas Senate Bill 1152 which allowed cable and
telephone companies to stop paying the lesser of their cable franchise or telephone
access line fees.

 The current year has seen a decrease in court fines and fees due to the decrease in the
number of tickets written. Estimates for 2020-2021 reflect a more normal year.

 Due to local health restrictions in the current year, Recreation Center and Aquatic
Center use, facility rentals, and summer camp revenues are down. Estimates for 2020-
2021 assume gradually resuming normal operations at these facilities.

 Select residential building permit fees will be increased by $25 to be more comparable
to the fees of surrounding cities. Commercial and industrial plan review will be
increased from 50% of the permit fee to 65%. These increases will result in a revenue
increase of $18,550.

 The Tarrant County Alarm Center will pay rent ($15,000) for the space occupied at Fire
Station 1.

 This will be the third year for the rental inspection program. The rental inspection fee
will be $75 for all rental units in the coming year. This is an increase of $25 per year for
some rental units. The increase will partially offset the cost of a Management Analyst
position added in the current year to help administer the inspection program.

 Interest earnings are projected to be down due to the lower fund balance, used to pay
for one-time items, and declining interest rates.

 The cost of employee health insurance is budgeted to decrease. The City hired a
benefits consultant to review insurance coverages, evaluate bids, and negotiate
coverage contracts. The proposed budget includes a two year agreement with CIGNA
to provide health, basic life, dental and vision coverage for city employees. There is an
estimated savings of $168,600 in the General Fund and $22,570 in the Enterprise Fund.
The City will continue to provide a $365 per month contribution for dependent coverage.
The estimated savings may be more once the bundling discount is applied and open
enrollment is complete. Any additional savings will be transferred at year end to the
Benefits Trust Fund for insurance expense for future years.

 In an effort to remain competitive and retain employees, the proposed budget includes a
3% salary adjustment. Adjustments to each employee’s salary will be based on meeting
certain performance standards. Minimum and maximum pay ranges will be adjusted.
The estimated cost to the General Fund is $323,050 and $37,755 in the Enterprise
Fund.

 Funding is included for the necessary advertising expense ($20,000) for a May public
improvements bond election as recommended by the Citizens Bond Committee.

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