Page 19 - Saginaw FY22 Adopted Annual Budget

ifli 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 2021

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 2021/2022. 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 1,2021, and concluding September 30, 2022.

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
and long term. Budget requests were prioritized and presented to the City Council in a
series of workshops throughout the spring and summer. As vaccination rates have
increased and social distancing and other restrictions related to the COVID-19 pandemic
have eased, most revenues and expenditures are at or above pre-pandemic levels. The
exception to this is programming at the Recreation Center. It will take time to rebuild
recreation and athletic programs and budgeted revenue reflects that assumption.

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. Fund balances built up during economic expansion have been available for one
time expenditures. One time expenditures are capital purchases, projects, special
requests that are not of a recurring nature, and development agreements. General Fund
balance at the end of FY 2021/2022 is projected to be $9.5 million.

The City of Saginaw sales tax collections have been steadily increasing. We have
estimated FY 2021/2022 sales tax revenues to discount anomalies resulting from the
State of Texas audit adjustments. We are forecasting sales tax revenue to be $5.8
million, which is lower than current year estimates due to a one-time audit adjustment in
the current year. Unemployment in the area is steadily decreasing. Other economic

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