2012-2013 Budget - City of Saginaw MI

EXPENDITURE BY CATEGORY ANAYLSISThe Expenditure by Category Analysis chart on the following page compares the 2011/2012 Approved Budget to the2012/2013 Approved Budget by category for all fund types. This analysis below discusses the change in each of thecategories.Personnel Services is the largest expenditure type, representing 50.11% of the total 2012/2013 Budget. In comparison tothe FY 2012 Approved Budget, personnel services will increase by 1.72% for all fund types. In FY 2013, personnelservices will be higher due to the following factors: expected increases in healthcare cost for retirees, dental, and pensionallocations for all employees, increases to the employer’s contribution for both Police and Fire and MERS PensionObligations. Healthcare insurance will be allocated based on group – Single, 2-Person, and Family. The city will nolonger budget these expenditures as a blended compromise rate. Also, the 2012/2013 Budget reflects step and longevityincrease only, no contractual increases have been built into this budget. Three collective bargaining groups’ contractswere renewed by June 30 with no contractual increases. Additionally, all city employees will begin contributing to thehealthcare insurance based on group type, Single, 2-Person, and Family. Both POAM and COAM healthcarecontribution rates will increase by $5 in the next fiscal year.Operating Expenses, the second largest expenditure category, is 37.36%, of the total 2012/2013 Budget. This categorywill increase approximately $6,048,308, or 13.69% from the previous fiscal year. This increase in operating expenses isprimarily attributed the following: in Community Public Safety – Police the city will purchase 26 Taser cameras,additional K-9 supplies, ammunition and will cover the maintenance agreement for the Shotspotter system in the DrugForfeiture Fund; in the Department of Development, the city has appropriated funds to pay for the contract with AKTPeerless Environmental, which was not budgeted for in previous fiscal years; in the Celebration Park Fund funds will beappropriated to cover costs related to resealing the splash pad and $138,326 towards the elimination of the negative fundbalance which is required under the Celebration Park Debt Elimination Plan; the Sewer and Water Operations andMaintenance Fund’s Operating Expenses will increase due to increases to professional services for the rate study andfinancial advisors; GIS charges due to the reallocation of these charges citywide; the inclusion of radio rental fees insome division that did not pay for these charges previously but utilized the equipment, contracting with an outside firmfor surveying services due to the outsourcing of this function in FY 2012; an increase to engineering services for variousprojects that will be completed during the course of 2013, and an anticipated increase to utilities by 5% by Consumers; inForest Lawn and Oakwood Cemeteries operating expenditures were included for the first time to cover expenses for fuel,employment agency fees, and operating services.Miscellaneous expenditures represent 10.11% of the total citywide budget. This category consists of Transfers, Increasein Fund Equity, Debt Services, Grants, and Block Grant Services. For FY 2013, this category will decrease by -38.34%,or $8,451,570, from the 2012 budgeted levels. The reduction in this category is primarily attributed to reductions in thefederal entitlement appropriation for Community Development Block Grant and Neighborhood Stabilization Funds. Thisreduction will be offset by increases to the principal and interest payments for the Water Operations and Maintenance andthe Clean Energy Coalition Funds.Capital Outlay, which accounts for 2.43% of the total citywide budget, will decrease $780,339, or -19.27% from FY2012. The decrease in Capital Outlay is a direct result of the reduction in the number of construction projects for Waterand Sewer Operations and Maintenance Funds.51