2012-2013 Budget - City of Saginaw MI

SEDC REVOLVING LOANREVENUE BUDGET SUMMARYThe purpose of the Saginaw Economic DevelopmentCorporation (SEDC) Revolving Loan Fund (RLF) is tocreate permanent, long-term jobs within the City ofSaginaw by providing “gap” and start-up financing toqualified businesses for eligible activities. Loans madethrough the Revolving Loan Fund are intended to helpbridge the gap created by shortfalls in commercialfinancing. This fund is classified as a Special RevenueFund, which is defined as a fund used to account forproceeds of specific revenue sources that are legallyrestricted to expenditures for specific purposes. SEDCRevolving Loan fund revenues will decrease to $671,250which is a -41.99% from the 2012 Approved Budget.This decrease is due to a reduction in block grantentitlementfunds.SUMMARY OF REVENUE2008/09 2009/10 2010/2011 2011/12 2011/12 2011/12 2012/13Actual Actual Actual Approved Adjusted Projected ApprovedFederal Grants 0 0 325,454 897,165 897,165 61,617 320,000Charge for Services 750 2,000 1,500 0 0 1,500 1,250Interest and Rents 60,366 69,111 63,739 60,000 60,000 71,143 100,000Other Revenues 684,204 178,427 248,810 200,000 200,000 264,798 250,000Total Revenues 745,320 249,538 639,503 1,157,165 1,157,165 399,058 671,250REVENUE TRENDS1,400,000Total SEDC Revolving LoanRevenues Since 20021,200,0001,000,000800,000600,000400,000Total SEDC Revenues200,000-The above graph reflects numerical data from FY 2002 – FY 2011 Actual Revenues, FY 2012 Approved Revenues, andFY 2013 Approved Budget. This trend reveals three spikes in revenue: 2002, 2003, and 2012. All three were due anincrease in the allocation of block grant entitlement funds. The fund also experienced two major dips in revenue in 2005and 2008. Both decreases were due to a reduction in the principle loan payments.232