2012-2013 Budget - City of Saginaw MI

All potential grants shall be carefully examined for matching requirements. Some grants may not be accepted if the localmatching funds cannot be justified. Grants may also be rejected if programs must be continued with local resources aftergrant funds have been exhausted.Cash and Cash EquivalentsCash and cash equivalents for all funds include amounts in demand deposits, petty cash, and certain investments whichare payable upon the demand of the City and have an original maturity of three months or less. Cash balances in most ofthe City’s operating funds are pooled and invested in various investments throughout the year. Each fund’s cash balanceis reported in a separate cash account and the City allocates interest earnings based on the average cash balance in eachfund during the year. For purposes of the Annual Financial Report, the City considers all highly liquid investments heldby trustees with maturity of three months or less when purchased to be cash equivalents. In addition, all cash andinvestments that are managed by the Deputy City Manager/CFO are also considered to be cash equivalents since they areavailable on demand.Basis of Accounting:Although the annual budget is prepared on cash basis with respect to revenues received and on an items invoiced basiswith respect to expenditures incurred for all funds, the Governmental Funds and Expendable Trust Funds are reported ona modified accrual basis of account for financial statement purposes. Revenues of these funds are recognized in the yearin which they become both measureable and available within 60 days after year end to pay current year liabilities. Themajor revenue sources accrued by the City include city income taxes; state shared revenues, some departmental earnings,and investment income. Revenues from other sources are recognized when received. Expenditures are generalrecognized in the year the related fund liability is incurred. Currently, the City does not have any general long-termobligations; however, the policy is to recognize the obligation when it is due. Inventory purchases are reported asexpenditures in the year the items are used. Expenditures for claims, judgments, and employer pension contributions arereported as the amounts accrued during the year that normally would be liquidated with expendable available financialresources.The full accrual basis of accounting is utilized by Enterprise Fund types for financial statement reporting purposes.Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.Expenditure PoliciesThe City of Saginaw scrutinizes all expenditures that affect the budget. Budgeted funds are appropriated and are alignedwith the City Council and City Administration’s five priorities, which are Crime and Public Safety Issues, NeighborhoodRevitalization and Beautification, Recreational Offering and Youth Activities, Maintain and Enhance City RevenueEfforts, and Organizational Development. Listed below are the budget dollars for FY 2012/13:City of Saginaw –Goals and ObjectivesAmount designated from 2013Approved BudgetCrime and Public Safety Issues $26,590,738Neighborhood Revitalization and City Beautification $11,018,086Recreational Offering and Youth Activities $215,779Maintain and Enhance City Revenue Efforts $97,644Organizational Development $58,163An appropriate balance will be maintained between budgeted funds provided that directs efficient and effective publicservices, management, and legal compliance. Additionally, all externally mandated services for which reimbursement isavailable will be fully evaluated and calculated to allow for recovery of expenditures. Furthermore, it is City policy tocompare budget to actual expenditures on a monthly basis. In compliance with the City of Saginaw City Charter’s27