2012-2013 Budget - City of Saginaw MI

UNFUNDED LIABILITIES FUNDREVENUE BUDGET SUMMARYThe Unfunded Liabilities Fund is considered to be aFiduciary Fund of the City of Saginaw. This fund wasestablished to start funding the unfunded healthinsurance premiums or Other Post Employee Benefits(OPEB) that are fully paid for by city retirees. As of FY2010, the total unfunded liability was estimated at $215million. The major revenue source for this fund is“Charge for Services”. Each year, the Office ofManagement and Budget meets with the City Managerand determines how much is available in each fund toallocate toward the city’s OPEB responsibility.Historically, this amount has been approximately$470,000. A percentage of this established amount isallocated to each fund. This figure is based on thenumber of employees that retired from that fund.Another revenue sources for this fund are revenuesreceived for interest on investments. Generally, thisrevenue is driven by market conditions and therebyfluctuating from year to year.For FY 2013, the Unfunded Liabilities Fund’s revenueswill be $919,876. This is an increase of $797,003, fromthe previous fiscal year. This increase reflects theappropriation of fund equity to assist with the paymentof retiree healthcare for the General and Motor PoolOperations Funds. These reserves represent fundsapportioned from the General and Motor Pool OperationFunds since FY 2008. This appropriation is a one-timesource.SUMMARY OF REVENUES2008/09 2009/10 2010/11 2011/12 2011/12 2011/12 2012/13Actual Actual Actual Approved Adjusted Projected ApprovedInterest and Rents 51,490 19,802 35,242 30,000 30,000 55,257 30,000Other Revenues (555,700) 66,041 564,759 0 0 (101,169) 889,876Charges to Other Funds 470,000 470,000 160,237 92,843 92,843 92,843 0REVENUE TRENDSTotal Revenues (34,210) 555,843 760,238 122,843 122,843 46,930 919,8761,000,000800,000600,000400,000200,000Total Unfunded Liabilities Revenues Since2002-(200,000)2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Total Unfunded Liabilities Revenues311