Page 20 - CityofSaginawFY25Budget

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 2024

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 2024/2025. 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, 2024, and concluding September 30, 2025.

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. There was also a Budget Retreat
meeting in August for citizens of Saginaw to attend and ask questions about the budget.

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 2024/2025 is projected to be $12.4 million.

The City of Saginaw sales tax collections have been steadily increasing. We are
forecasting sales tax revenue to be $7.6 million, which is around 3% higher than the
previous year estimate. Unemployment in the area is steadily decreasing. Other
economic activity continues to expand at a high pace. The regional outlook is optimistic
with growth expectations in the coming year. Given the city’s diverse tax base and
essential food manufacturing industry the pandemic has not had a significant financial
impact. Another large influence on the City’s budget is property valuation. The high

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