2012-2013 Budget - City of Saginaw MI

CITY OF SAGINAW1315 South Washington AvenueSaginaw, MI 48601-2599April 30, 2012Honorable Mayor and City Council:In accordance with Section 43 of the Charter of the City of Saginaw and M.C.L.A. 141.421 et seq, theUniform Budgeting and Accounting Act, submitted to you is the City Manager’s Fiscal Year 2013Recommended Budget. The format of this budget document, you will notice, continues withimprovements that have been made in past years. The purpose and intent is to publish a budget documentthat acts as a policy statement, an operations guide, and a financial plan as well as a communication tool.The recommended budget reflects a “zero growth budget” that is focused on “Reform andSustainability”. This budget is a spending plan that reorganizes the financial landscape and allocatesvery scarce resources toward financial and administrative stability. The 2012/2013 Approved Budget willrequire diligent review and monitoring throughout the fiscal year. Balancing this budget proved extremelychallenging given the continued decline in revenues, and the expected increases in the cost of providingservices. The decline in taxable value is also an issue that added to the difficulty, as will be discussedfurther herein.The major highlights of the fiscal year 2012/2013 Approved Budget include:A General Fund budget total of $31,804,156 - This represents a “zero growth budget,” which actuallyequates to a decrease of $1,224,208, from the FY 2012 General Fund budget of $33,028,364.A recommended tax levy of 14.5637 mills – In 2012, the tax levy is projected to increase 0.3347 millsfrom 2011. The increase is attributed to a decrease in the taxable value of properties in the city. It shouldbe noted that the rate is still lower than the 2010 rate, which was 15.2508 mills. In 2011, the cityeliminated 2.9532 mills for rubbish collection. This elimination was possible because the funding methodfor rubbish was changed from a combined millage and fee to a fee only service; however that decreasewas somewhat offset by a 1.5 mill increase in the Police and Fire Special Assessment that was approvedby voters in 2010. The General Fund property tax receipts will be limited by the gross revenue ceilinglimitation in the City Charter.Millage Rate 2012City Operating 7.0637Police & Fire Special Asmt. 7.5000Total 14.5637Rate of Growth of Property Tax Base – Proposal A (a 1994 amendment to the State constitution)requires that the increase in taxable value be capped at the Consumer Price Index or 5%, whichever is1