Page 269 - Saginaw FY22 Adopted Annual Budget

CITY OF SAGINAW, TEXAS
FINANCIAL MANAGEMENT POLICIES

XI. Revenue Management Policies
A. The City shall strive to maintain a revenue system which is simple and

reliable.
B. The City shall strive to maintain a balanced and diversified revenue system
to protect the City from fluctuations in any one source due to changes in
economic conditions.
C. The City will review, as part of the annual budget process, its fee structure
to ensure that revenue collections are adequate to meet corresponding
expenditures and are market comparable.
D. A conservative approach will be adopted when estimating revenues.

E. Utility Rates
1. The City will review and adopt utility rates that will generate revenue
required to fully cover operating expenses, meet legal restrictions of all applicable
bond covenants, and provide for an adequate level of working capital and fund
balance.
2. A component of the utility rate will include a transfer to any fund that
provides service to the utility. This transfer will be for the recovery of the cost of
services provided to the utility for overhead and administration.
F. Uncollectible Receivables for Utility Accounts
1. The City shall contract for the collections of delinquent utility accounts.
2. Once each year the City will write-off inactive accounts with a delinquent
balance of more than one year as of the end of the previous fiscal year. The write-
off of uncollected accounts is a bookkeeping entry only and does not release the
debtor from any debt owed to the City.

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