Page 29 - GFOA Draft 2

CITY OF SAGINAW
BUDGET HIGHLIGHTS
2022-2023

Sales tax revenue has fluctuated from month to month but has remained strong. The year to
date collections compared to last year is up 6%. The budgeted estimates for next fiscal year
assume similar collections as the current year. We estimate that we will receive $6,700,000 in
sales tax revenue in the General Fund, a 16% increase over our current year adopted budget and
the same as current year estimates. The current sales tax rate is 8.25%, which is the maximum
rate allowed. Of this, 6.25% goes to the State, 1.5% to the General Fund, 0.375% to the CCPD
Fund, and 0.125% to the Street Maintenance Fund.
There is an estimated 5% increase in franchise fees revenue based on current collections and
the impact of the extreme weather conditions on utility bills.

Court fines and fees are continuing to return to a pre-pandemic levels and are cautiously
estimated to increase based on current year trends and historical averages. Staffing levels of
police officers greatly impact this revenue source.
Recreation and Aquatic Center use, facility rentals, and summer camp revenues are gradually
increasing as some pre-pandemic programming has returned. Estimates for 2022-2023 assume
some increases but due to the relocation of senior citizen activities to the Recreation Center,
revenue producing activities are limited by space needs.
Building permit fees are estimated to increase over current year estimates with several
developments expected to begin construction in the coming year.

Rental inspection fees are increasing due to a fee increase from $75 to $125 per year. These
increased fees help to offset the three positions primarily responsible for the program that
inspects all rental units within the city to ensure safe and sanitary living conditions.

Other permits and fees are increasing as well. Garage sale permits will increase from $5 to $10
and business alarm permit fees from $15 to $50. Both increases are proposed to partially offset
the cost of these programs.
Revenue from the Eagle Mountain-Saginaw School District for a portion of the cost of school
resource officers and school crossing guards is decreasing. The district will operate its own
police force beginning next year. The City expects to provide this service for three months of the
fiscal year.
Based on current trends Other Income is estimated to be down by $20,000.

Grant assistance from the Tarrant County 911 District is expected to gradually decrease over the
next four years. There is a projected decrease of 25% for the Radio Assistance and the Public
Safety Answering Point grants.
American Rescue Plan Act (ARPA) funding is proposed to be used for a portion of the
replacement fire engine ($150,000), repairs to the Police Department roof ($276,745), and an
emergency generator at the Recreation Center ($205,000).
Interest earnings are projected to be up due to increasing interest rates.

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