Page 28 - Saginaw FY22 Adopted Annual Budget

CITY OF SAGINAW
BUDGET HIGHLIGHTS
2021-2022

• There is a small estimated decrease in franchise fees due to the decline in cable
television franchise fee receipts. They 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.

• Court fines and fees are estimated to reflect a more normal year with court operations
returning to a pre-pandemic schedule and fewer police officer vacancies.

• 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 2021-2022
assume gradually resuming normal operations at these facilities. Recreation classes
and programs will take some time to build back up to pre-pandemic enrollment. One
part-time customer service position will remain vacant until programming and revenues
increase.

• Building permit fees are estimated to remain strong with several developments expected
to begin construction in the coming year. Revenue is estimated to increase $310,465
over the current year adopted budget. Other permits and fees are estimated to increase
by $17,600.

• These increased building fees will help fund a full year of the Inspector in Training
position added to Building Inspection/Code Enforcement in the current fiscal year.

• Interest earnings are projected to be down due to very low interest rates.

• The cost of employee health insurance is budgeted to remain the same for 2021-2022.
The City is in the second year of a two-year agreement with CIGNA to provide health,
basic life, and vision coverage for city employees. Dental rates will also remain the same
as the current year. The City will continue to provide a $365 per month contribution for
dependent coverage. As rates are finalized the structure/cost to the employee may
change. Any additional savings will be transferred at year end to the Escrow Fund to
offset anticipated premium increases for FY 2022-2023.

• As long term employees begin to retire and the labor market remains very competitive,
pay plan adjustments are proposed. The adjustments have been made based on the
needs and staffing tenure of the department. There is a 3% increase for most
employees. All City employees with five or more years of employment with the City will
receive an increase to the mid-point (step 4) of their respective pay grade.

• The city-wide cost of worker’s compensation and property/general liability insurance
through Texas Municipal League will increase by $68,485 and $19,160 respectively.
Public official errors and omissions liability insurance will increase $3,755 and law
enforcement liability will increase by $6,345.

• A Human Resource Analyst position ($78,330) is added to Administration to assist with
payroll, insurance, and benefits administration.

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