Page 20 - Saginaw FY19 Annual Budget

Other major issues in each of the operating funds of the City are outlined as follows:

GENERAL FUND

This year our estimated General Fund Revenues total $16,727,135. Expenditures total
$16,612,675. The difference of $885,540 will be funded using existing fund balance. The
draw-down of fund balance will be used for non-recurring and one time capital purchases.
Our ending balance on September 30, 2018 is estimated at $9,662,973.

The two major sources of revenue consist of $4,646,000 from sales tax revenue and
$5,366,835 from ad valorem tax revenue. The 2018 taxable value is $1,843,457,430 and
reflects $58,928,786 in new construction. The taxable value increased by 12.9% this
fiscal year. The approved budget is based on a 2018 tax rate of $0.471800, which is 2.32
cents less than the 2017 rate of $0.495000, with $0.291129 for maintenance and
operations, and $0.180671 for debt service.

Sales tax revenues have fluctuated in the last few years. We estimate that we will receive
$4,646,000 in sales tax revenue, which is a 1% increase over the amount we expect to
collect in FY2017-2018. We use a conservative approach in projecting this volatile
revenue source.

General Fund expenditures decreased by $861,995 or 4.9% when compared to the
previous year’s revised budget. The decrease is due to one time items in the FY 2017-
2018 budget being less than those included in FY 2018-2019. The changes by
department are described below.

A separate document (Budget Guidelines) is prepared for Department Heads and
identifies the expenditures by account number with explanations for each. The FY 2017-
2018 General Fund Revised Budget is $17,474,670. The approved 2018-2019 budget is
$16,612,675. Capital outlays and transfers total $976,555. The following chart shows
the changes in expenditures for each department in the General Fund.

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