Page 28 - CityofSaginawFY25Budget

CITY OF SAGINAW

BUDGET HIGHLIGHTS

2024-2025

Sales tax revenue has fluctuated from month to month but has remained strong. The year to date collections
(adjusted for a one time audit adjustment) compared to last year is up 5%. The budgeted estimates for next fiscal
year assume similar collections as the current year. We estimate that we will receive $7,649,320 in sales tax revenue
in the General Fund, a 3% increase over our current year adopted budget and the same as current year estimates
less the one time audit adjustment. 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 7% 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 picking up with fewer Police Department vacancies and increased traffic enforcement.
Based on current year collections revenues are projected to be 10% more than current year budget.

Recreation and Aquatic Center use, facility rentals, and summer camp revenues budgeted to increase 14% over the
current year budget based on current year trends and the increased use of the Aquatic Center.

Building permit fees are estimated to be higher than current year with several developments expected to continue
construction in the coming year.

Rental inspection fee revenue is increasing due to the construction of several new rental developments. Rental
inspection fees offset the cost inspecting rental units within the city to ensure safe and sanitary living conditions.

The City has contracted with Eagle Mountain Saginaw ISD and Town of Blue Mound to provide detention
services. The estimated revenue is $13,750 based on current year trends.

Revenue from the City of Lake Worth for a 50% share of Emergency Management expenses are budgeted to
increase based on estimated staffing costs.

Fees paid by Tarrant County for fire protection are expected to be the same as the current year estimate, a $6,000
increase over the current year adopted budget.

Mixed beverage tax is projected to increase $7,000 based on current trends.

Interest earnings are projected based on projected rates and cash balances.

Our insurance broker and City staff are in the process of negotiating with our current provider. The proposed
budget includes an estimated increase of 9.5% over current rates. As providers are determined there is a potential to
see cost reductions. The City provides coverage for employee health, dental, and basic life insurance. The City will
continue to partially fund dependent coverage. As rates are finalized the structure/cost to the employee may
change.

27