2012-2013 Budget - City of Saginaw MI

CITY OF SAGINAW2012/2013 APPROVED BUDGETPOLICIES AND VISIONING PLANThe City Charter, the Uniform Budgeting and Accounting Act for State and Local Units of Governmentin Michigan, and the generally accepted accounting principles govern the City of Saginaw (City) budgetpolicies. These laws established budget control guidelines, establish tax levy and assessment valuationslimits, and provide bonded debt limits. The City’s resources and appropriations policies are extensionsof these laws, and follow generally accepted accounting principles.LEGAL REQUIREMENTS:The City Charter (Section 43) states that by the last Monday of April, the City Manager shall submit tothe City Council the Approved budget for the next fiscal year.Council shall by resolution, determine and adopt the budget and make the appropriations for the nextfiscal year and shall provide, by resolution, for a tax levy of the amount necessary to be raised bytaxation at least thirty days prior to the first day of the upcoming fiscal year. In accordance with PublicAct 5 of 1982 as amended, a public hearing shall be held prior to levying of an additional millage rates(Truth and Taxation) and the adoption of the next fiscal year budget by the council, as such time andplace as the council shall direct. The city clerk shall publish the notice of public hearing at least oneweek in advance.The amount of property taxes that may be levied by the city in any year shall not exceed three-quartersof one percent of the assessed valuation as equalized of all taxable real and personal property of the city.If the assessed value of all the property in the city as determined on the first Monday in May, 1979, isincreased in subsequent years for any reason, the maximum millage rate provided herein shall bepermanently reduced to yield the same gross dollar revenue as the fiscal year 1978-79 property taxrevenue yield (Section 45 of City of Saginaw Charter).The City is also required by the State of Michigan to present a balanced budget. An appropriationresolution cannot be adopted that would cause total expenditures, including accrued deficit, to exceedtotal revenues, to include any available surplus, Section 16 of Public Act 621 of 1978.FINANCIAL (BUDGET) POLICIES:The City of Saginaw’s financial policies have been established for the overall fiscal management of theCity. These policies operate independently of changing circumstances and conditions. These policiesalso provide a framework to assist the decision-making process for the Council and Administration.The following policies provide guidelines to evaluate current services as well as proposals for futureprojects and programs:The budget will determine how much money is available. It will then allocate these resourcesamong the highest priorities that have been established by City Council at the City’s StrategicPlanning Sessions.Expanding an existing service program or adding a new service or program will only beconsidered when a new revenue source has been identified or can be supported through the17