2012-2013 Budget - City of Saginaw MI

STATE SHARED REVENUESThe City of Saginaw receives approximately 22.29% of its General Fund revenue from state revenue sharing.The State of Michigan has experienced significant budget problems, which it attempted to partially remedy bycutting payments of shared sales tax revenues to local units of government. Governor Snyder released apreliminary plan on how statutory funding will be allocated and distributed. The State constructed a threetiered criteria, known as the Economic Vitality Incentive Program, on how to comply with the governor’sproposal. The Economic Vitality Incentive Program requires that local municipalities submit to the StateTreasurer initiatives that fulfills the criteria of Accountability and Transparency, Consolidation andCollaboration of Services, and Employee Benefits Compensation. In FY 2012, the city complied and met thedeadlines for the governor initiative and expects to receive these revenues. Even though the Statutory StateShared Revenues were reduced by 1/3, the city will also realize losses in the Constitutional portion of the StateShared Revenues due to the decrease in population. Hence, the City’s 2012/2013 Approved Budget reflects anoverall decrease of $899,744, or -11.24% for revenue sharing funds.GRANTSFor FY 2013, the City budgeted $634,240 for federal grant funding related to police overtime, gasreimbursements for drug enforcement, and a traffic grant. This is a $77,116, or -10.84% reduction from the2012 approved budget levels. In FY 2013, the City will receive little or no new general fund grants for policeand development activities.LICENSES, PERMITS, & FEESThe City anticipates $1,222,700, for licenses, permits, and fees for FY 2013. This represents a decrease of$2,450, over the approved 2012 revenue. This includes business licenses, building permits, and cabletelevision franchise fees.CHARGE FOR SERVICESThe total projected charges for services for FY 2013 is $937,790. Charges for services include cemeterycharges, Public Act 425, and Police and Fire Services. Future State of Michigan Public Act 425 Agreements orcorresponding service agreements is being negotiated with other communities as they increase business andresidential development. These agreements will provide a direct revenue flow to the General Fund.FINES AND FORFEITURESThe revenue in this category includes ordinance fines, parking receipts, parking lot receipts, parking violationsand transfer affidavit fees. The revenue is anticipated to increase from the 2012 approved revenue by$641,522. This increase is due to the reassignment of the Parking and Operations Maintenance Fund from anEnterprise Fund to the General Fund. Additionally, the city administration is in the process of evaluating theparking enforcement strategy for the city and has developed a long-term strategy which will allow the city tocollect outstanding parking revenue.INTEREST REVENUEInterest revenue is projected to decrease by $2,800 from 2012 approved. This is primarily due to the expecteddecrease in the interest rate values on the City’s pooled cash.61