2012-2013 Budget - City of Saginaw MI

Motor Pool Operations Fund:This fund is responsible for acquiring and maintaining vehicles and other motorized equipment for use ingeneral City operations. The costs of maintenance and replacement are recovered through rental ratescharged to City operations using the vehicles and equipment.Self-Insurance Fund:This fund was established by City Council to serve as a general insurance reserve for liabilities and claims notcovered by commercial carriers or to pay deductibles. This fund accounts for the payment of insurancepremiums; the distribution of insurance costs to other City funds, and records the insurance claims liability.Worker’s Compensation Fund:This fund accounts for all expenses, revenues, and claims relating to the City’s self-insured workers’compensation program. Premiums are charged to other City funds based on a percentage of budgetedsalaries.FIDUCIARY FUNDSFiduciary Funds are used to account for or administer property or assets that are owned by other entities.Public Employee Healthcare Fund/ Unfunded Liabilities Fund:This fund was established to start funding the unfunded health insurance premiums that are fully paid for allCity retirees. The unfunded liability is estimated at over $215 million.Police and Fire Pension Fund:Assets accumulated for the payment of retirement benefits for City Police and Fire personnel are recorded inthis fund. Benefits for retired members are paid from this fund and active members contribute to the pensionsystem through payroll deductions. The City contributes to the fund by an annual appropriation from theGeneral Fund and Public Safety Grant Funds, which is determined and set by an annual actuarial valuation.Trust and Agency Funds:The Bliss Park Expenditure Endowment Fund is recorded as the only budgeted trust and agency fund. Thesefunds are used to account for property taxes collected by the City for other units of government until the taxproceeds are remitted to them. Funds retained from contractors during construction projects and employeeand employer payroll withholdings and benefits are also recorded here.32