Page 8 - CityofSaginawFY26Budget
P. 8

CITY OF SAGINAW
                                                BUDGET HIGHLIGHTS
                                                           2025-2026



                     In Information Technology savings related to the email and network security are offset by
                       increases for computer replacements and telephone expense.

                     The vacant Emergency Management Coordinator position ($135,465) will be held vacant
                       in the proposed budget.

                     The General Fund balance will be reduced by $758,525 for one-time items.


               DEBT SERVICE FUND:

                     The  Adopted  budget  includes  $7,526,450  funding  for  principal  and  interest  payments.
                       An  estimated  use  of  $359,220  of  property  tax  collections  from  the  prior  years  will  be
                       used for fiscal year 2025-2026 debt service. The estimated fund balance at year end will
                       be $1,093,092.

               ENTERPRISE FUND:

                     The  City  of  Saginaw  purchases  water  from  the  City  of  Fort  Worth.    Fort  Worth  has
                       proposed a 6.75% increase in wholesale water rates.

                     The City of Fort Worth bills the City of Saginaw for wastewater treatment based on the
                       strengths and volume that pass through the system.  Fort Worth has proposed a 2.69%
                       decrease in wastewater rates.

                     As a result of a current year rate study and long range rate model the City proposes an
                       increase of 3.25% in both water and wastewater fees.  The strategy will be to have more
                       consistent and gradual increases to the rates instead of fluctuations from year to year.
                       The  average  customer  using  8,000  gallons  of  water  per  month  will  see  a  monthly
                       increase of $2.22 as a result of the water and sewer rate changes.

                     Line  item  increases  include  funding  for  the  new  ERP  system  $36,665,  increases  for
                       water  system  maintenance  and  supplies  $20,000,  and  increases  for  engineering
                       services $9,600.

                     The  adopted  budget  includes:  30  water  sampling  stations  ($42,750)  and  50%  funding
                       ($25,000) for the home renovation incentive program, SHIP.

                     Funding is provided for a dump truck $129,000, a backhoe $175,070, and water meter
                       replacements $104,000.

                     Construction  of  the  Fairmont  12”  Sanitary  Sewer  Rehabilitation  Phase  2  project
                       $1,995,000 is budgeted.

                     Construction of the W McLeroy 12” Water Line Project ($613,500) will be partially funded
                       with water impact fees ($394,500).

                     Replacement of water lines in conjunction with Phase 1 of the Opal Street reconstruction
                       ($900,000).
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