2012-2013 Budget - City of Saginaw MI

A percent of 2012 revenues are determined from revenues receipts at December 31, 2011. The 2012revenues at December 31, 2011, are divided by the percentage collected December 31, 2010, to projectrevenues for 2012. By reviewing revenue trends in conjunction with this method of projections for 2012revenues, the 2013 revenues are projected.Method 4:Percentage of 2011 Revenue budget collected at June 30, 2011 x 2012 Budget2012 revenues can be projected by multiplying the percentage of 2011 Budget, which was collected atJune 30, 2011, times the 2012 Budget. By reviewing the historical actual to budget ratios, assumptionscan be determined to assist in 2013 revenue projections.Budgets and Budgetary AccountingThe City Charter requires the City Council, by resolution, to determine and adopt the budget and make the appropriationsfor the next fiscal year and to provide, by resolution, for a tax levy of the amount necessary to be raised by taxation atleast 30 days prior to the first day of the upcoming fiscal year. Budgetary control is exercised at the department(appropriation center) level in the General Fund and at the fund level for all other budgeted funds. General Fund lineitem budget transfers from one account to another within the same appropriation center can be made without CityCouncil approval. All budget transfers from one appropriation center to another or from the General Fund ContingentAppropriation account must be approved by City Council. In all other funds, line item budget transfers from one accountto another within the same department and fund can be made without City Council approval.All unencumbered appropriations lapse at the end of the fiscal year unless specific requests to reserve funds for capitalitems are made by the departments and approved by the Deputy City Manager/CFO or the Assistant to the CityManager/Budget Administrator. The subsequent fiscal year’s budget is then amended when these expenditures arerecorded. Encumbrances outstanding at June 30 do not lapse but are brought forward to the new fiscal year, unless thefund ends in a deficit. In accordance with the State of Michigan’s Uniform Budgeting and Accounting Act, allencumbrances of the fund are cancelled and expenditures are assessed against the next year’s budget should theappropriation center end in a deficit.The General, Community Development, Major Streets, Local Streets, Rubbish Collection, Public Safety Millage, PublicSafety Grants, Andersen Enrichment Center Operation, Boat Launch Operation, and all other Special Revenue Funds areunder formal budgetary control as is required by Michigan Public Act 621. Budgets shown in the financial statementswere prepared on the modified accrual basis. This is the same basis used to reflect actual results and consists only ofthose amounts contained in the formal budget approved by City Council. Special Revenue Funds are considered to bedepartments for budgetary purposes. All Enterprise, Internal Service, and Fiduciary Funds are budgeted annually forinternal control purposes only. Budgetary information for these funds is not required in the financial statements.Furthermore, the City Charter requires that all funds except for Inventory and Trust and Agency Funds be approved byCity Council.One-time and Questionable RevenuesThe City of Saginaw adheres to the State of Michigan’s Uniform Budgeting and Accounting Act as it relates to the use ofone-time revenues. In general, the City’s policy on the use of one-time revenues has been to fund capital improvement orreserves. The use of one-time revenues to fund ongoing expenditures is discouraged. The Assistant to the CityManager/Budget Administrator and Deputy City Manager/CFO review these sources of revenues to determine whetherthey should be included in the budget.Questionable revenues are budgeted in accordance with state law and conservatively. These revenues are only budgetedif they are certain. The City of Saginaw discloses all questionable revenues in its general appropriation act.Additionally, the City Manager requires that a plan for expenditures reductions be developed and enacted if it becomesapparent that the revenues will not be realized.26