2012-2013 Budget - City of Saginaw MI

Pursuant to the City of Saginaw City Charter Chapter VII, Section 44, the council shall hold a public hearing on thebudget before its final adoption.City Council then makes appropriations and adopts the budget by ordinance no later than thirty days prior to the end ofthe fiscal year.Budget CalendarDecemberJanuaryFebruaryMarchAprilMayDepartment head meeting for Budget KickoffDistribute budget instructions, calendar, and narrativesPrepare and distribute revenue and expenditure manualsSnapshot of Personnel and Pension modules of the City’s Financial SystemPersonnel manuals distributed to DepartmentsOMB staff meets with DepartmentsPrepare a preliminary summary statement of projected revenue vs. expenditurerequestsPreliminary summary of projected revenue and expenditure requests presented toCity Manager and Deputy City Manager/CFO for reviewCity Manager meets with DepartmentsCity Manager meets with Departments (continues)1 st and 2 nd rounds of budget review with City Manager, Deputy City Manager, andOMBCity Manager’s Proposed Budget presented to City CouncilDevelopment and printing of the FY Proposed BudgetCouncilmanic budget hearing and adoptionRevenue ProjectionsUsing actual and projected data and various analyses are performed by the Assistant to the City Manager/BudgetAdministrator and Administrative/Budget Analyst to project revenues. Revenue estimates are based on four differentprojection methods which incorporate growth rates over the previous ten years, current year receipts, collection rateswhere applicable, and important input from all departments. Each projection method is tested against actual prior yearrevenues to determine validity and reasonability. These tests are conducted at the revenue line item (detail) level, andonly the projection methods deemed valid and reasonable are utilized. Additionally, in accordance with the State ofMichigan’s Uniform Budgeting and Accounting Act, all one-time revenue sources are given appropriate consideration.Revenue Projection MethodsMethod 1: 7 years Average Growth Rate x 2011 Actual Revenues at June 30, 2011The seven-year average growth rate from 2004 – 2011 multiplied by 2011 actual revenues is used as aprojection for the 2012 revenues. By utilizing the average growth rate for an additional year, the 2013revenues are projected.Method 2:2012 Actual Revenues at December 31, 2011 / 6 months x 12 monthsA monthly average of current year revenues is calculated based on six months of receipts, which are thenannualized to project current year revenues. Based on revenue trends and this method of projection for2012 revenues, 2013 revenues are projected. (Please note as more information is provided the revenuesare further altered).Method 3: 2012 Actual Revenues at December 31, 2011 / (2011 Actual Revenues at December 31, 2010 / 2011Actual Revenues at June 30, 2011)25