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CITY OF SAGINAW
FUND DESCRIPTION

STREET MAINTENANCE FUND

The State of Texas Tax Code allows Texas cities to raise their local sales tax rate by one-eighth of one cent or one-fourth of
one cent if the funds are dedicated to street maintenance and repair. Cities may impose the tax with voter approval if the
combined local sales tax will not exceed two percent. Voters must approve the additional sales tax and the city's governing
body must call the election. The city administers the tax directly and accounts for the funds separately as required by state
law. The sales tax is restricted to use only to maintain and repair municipal streets and sidewalks that existed on the date
of the election and may not be used to build new streets.

The street maintenance sales tax expires four years after it takes effect unless voters approve continuation in an election
held for that purpose.

The citizens of Saginaw voted to approve a one-eighth of one cent (0.125) sales tax for the purpose of street maintenance
and repairs on May 12, 2007. Voters renewed the Street Maintenance Tax for four years in November, 2011; May 2, 2015;
and May 2019.

The City has been utilizing much of this revenue for reconstruction projects utilizing Tarrant County Interlocal agreements.
Additionally, the funds can be used on other street programs and street maintenance materials such as asphalt and
concrete. Staff has generated an electronic Street Condition Survey along with a rating system which is used for planning
and budgeting purposes.

Street projects for FY 21/22 include spot repairs to Jarvis between Brenda Lane and East Bailey Boswell Road and the
reconstruction of Delmar Court, Indian Crest, and Saddle Trail.

FY 22/23 will start the Pavement Replacement Program with repairs to Knowles from Park Center to Bailey Boswell Road.

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