Page 12 - Saginaw FY22 Adopted Annual Budget

The City of Saginaw prepared for the growth projected in the 1990’s by constructing
infrastructure to meet the demand. As the City approaches build-out, the focus has been on
strengthening the infrastructure system and maintaining and rehabilitating existing
infrastructure. Because the City of Saginaw is a mature city with a stable political and financial
base, Council is able to prepare formal long range plans every five years with a review of
priorities on an annual basis that is translated into the annual budget by Staff. Each year the
planned projects are evaluated based on the projected needs and available funding.

The City of Saginaw has also developed a long range financial plan to set parameters for
operating budgets and plan for the issuance of debt that was approved by voters in May 2021.
Key assumptions include that the tax base will grow by 2% annually and be distributed 40% for
Debt Service Fund and 60% for the General Fund.

In connection with the Comprehensive Master Plan and the Multi-year Financial Plan, the City
has adopted a Strategic Plan with the following goals for the next five years.

➢ Maintain a financially sound city providing superior services
➢ Improve mobility and traffic flow
➢ More beautiful, livable community
➢ Develop vibrant activity centers/major corridors
➢ Expand community quality of life amenities

The annual budget is developed within the context of these three plans. These plans anticipate
funding needs and available revenues and forecast methods for matching future revenues and
expenditures. General Fund balance at the end of FY2021/2022 is projected to be $9.7 million.
Ending fund balance includes restricted resources of 25% of operating expenditures, leaving
$4.7million in unrestricted/unreserved resources.

The City is working with developers of mixed use projects for several remaining large parcels of
undeveloped land. There continues to be growth in the tax base. High demand and a tight
housing inventory throughout the State of Texas has resulted in an increase of 8.6% in property
tax values for the City of Saginaw in 2021. We anticipate residential building will slow in 2022 but
the mixed use developments, including multi-family residential, will begin construction.

The following pages present the City’s goals, achievements and objectives within the framework
of the strategies developed through the City’s planning, described above. Departmental goals,
achievements, and objectives and how those relate to the overall City long range and strategic
planning are included with each department’s budget.

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