2012-2013 Budget - City of Saginaw MI

General Fund RevenuesTotal 2012/2013 Approved General Fund resources are budgeted at $31,804,156, which represents a decreaseof $1,224,208,208, or -3.71%, from 2012, approved resources of $33,028,364.PROPERTY TAXESCity property taxes are levied each July 1 on the taxable value of property located in the City as of thepreceding December 31, tax day and the lien date. In accordance with the provisions of Proposal A (seebelow), taxable value is the lower of the following three computations: 1) assessed/state equalized value; 2) theprior year’s taxable value multiplied by the increase in the consumer price index or five percent (5%),whichever is less; or 3) the multiplier value. Proposal A requires the City Assessor to annually establish theassessed values and the equalization of said assessed values by the State of Michigan at 50 percent of currentmarket value, prior to the application of formulas to determine the taxable value. Real property taxable valuefor the July 1, 2012 levy will be assessed at $448,118,356 and personal property taxable value will be assessedat $93,911,200.City of Saginaw Share of TaxesUtilities, 4%Agricultural, 0%Commercial, 22%Residential, 62%Industrial, 13%The graph above illustrates the taxable value of property in the city as a percent of customer class.The City of Saginaw’s operating tax rate for FY 2013 is projected to be 7.0637 mills (limited to 7.50 mills). Aspecial assessment of 7.5000 mills is also levied for public safety. The City does not levy for debt service.On March 15, 1994, voters in the State of Michigan approved Proposal A, a property tax reform proposal,which shifted the funding of education from property taxes to a combination of property taxes, higher sales taxand a real estate transfer tax. Property taxes were reduced to a maximum of six mills for homestead propertyand eighteen mills for non-homestead property; the State Sales Tax was increased from four cents to six cents;and a new real estate transfer tax of $7.50 per thousand dollars was added. In addition, Proposal A restrictedthe growth of assessments on individual properties to an increase in the consumer price index or five percent(5%); whichever is less, until ownership of the property is transferred. The citizens of Saginaw subsequently59