Page 248 - Saginaw FY19 Annual Budget

CITY OF SAGINAW
LONG RANGE FINANCIAL FORECAST

ADOPTED ESTIMATED ESTIMATED ESTIMATED ESTIMATED
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
GENERAL FUND
BEGINNING RESOURCES $ 9,662,973 $ 8,777,433 $ 8,164,856 $ 7,911,112 $ 7,489,536
REVENUES
Current Property Taxes $ 5,366,835 $ 5,729,217 $ 6,232,094 $ 6,599,590 $ 6,986,202
Sales Tax 4,646,000 4,738,920 4,833,698 4,930,372 5,028,980
Other Taxes 61,000 51,320 51,645 51,980 52,320
Franchise Fees 1,633,000 1,631,900 1,640,290 1,656,540 1,679,355
License, Permits, Fees, and Fines 1,661,850 1,737,450 1,547,450 1,562,500 1,577,605
Other Revenue 345,120 355,955 360,935 366,060 371,345
Grant Assistance 58,925 59,340 59,775 60,215 60,675
Interest on Investments 160,000 186,850 188,719 190,606 192,512
Transfers from Other Funds 1,794,405 1,875,490 1,906,480 1,937,655 1,968,965
TOTAL REVENUES $ 15,727,135 $ 16,366,442 $ 16,821,086 $ 17,355,518 $ 17,917,959
EXPENDITURES
Personnel Services $ 12,154,815 $ 12,624,519 $ 13,003,255 $ 13,393,353 $ 13,795,153
Supplies and Services 3,481,305 3,505,864 3,611,040 3,708,071 3,799,313
Capital Outlay 976,555 848,635 460,535 675,670 405,293
TOTAL EXPENDITURES $ 16,612,675 $ 16,979,019 $ 17,074,830 $ 17,777,094 $ 17,999,760
ENDING RESOURCES $ 8,777,433 $ 8,164,856 $ 7,911,112 $ 7,489,536 $ 7,407,735

Restricted Resources 4,076,125 4,032,596 4,153,574 4,275,356 4,398,617
Reserved Resources 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000

Unrestricted/unreserved Resources 2,701,308 2,132,261 1,757,538 1,214,180 1,009,118

Increase/(Decrease in Fund Balance) $ (885,540) $ (612,577) $ (253,744) $ (421,576) $ (81,801)

DEBT SERVICE FUND
BEGINNING RESOURCES $ 953,415 $ 953,415 $ 953,415 $ 953,415 $ 953,415
REVENUES
Current Property Taxes $ 3,330,595 $ 3,334,045 $ 3,337,990 $ 3,346,430 $ 3,338,030
Other Revenue 62,015 62,000 62,000 57,000 57,000
TOTAL REVENUES $ 3,392,610 $ 3,396,045 $ 3,399,990 $ 3,403,430 $ 3,395,030
EXPENDITURES
Principal Payments - Bonds $ 2,495,000 $ 2,555,000 $ 2,250,000 $ 2,310,000 $ 2,360,000
Interest Payments - Bonds 886,610 830,045 767,990 710,430 651,030
Capacity for new debt - - 370,000 370,000 370,000
Other Expenses 11,000 11,000 12,000 13,000 14,000
TOTAL EXPENDITURES $ 3,392,610 $ 3,396,045 $ 3,399,990 $ 3,403,430 $ 3,395,030
ENDING RESOURCES $ 953,415 $ 953,415 $ 953,415 $ 953,415 $ 953,415

Increase/(Decrease in Fund Balance) $ - $ - $ - $ - $ -

The long range financial forecast is a planning tool only. It provides a multi-year overview of possible financial conditions. During the annual
budget process, the City Manager and City Council will assess the current needs of the City and make decisions accordingly.

The annual budget is developed within the context of the Comprehensive Master Plan, the Capital Improvement Plan, and the Department
Five Year Plans. Each year these plans are revised based on more current cost estimates, funding constraints, and changing priorities.
The above five year forecast shows the General Fund and Debt Service Funds balanced with planned drawdowns of fund balance for one
time capital purchases. The Debt Service Fund shows additional capacity of $370,000 beginning in FY20/21. The additional capacity is the
amount that will keep debt service expense the same as the current levels. It is estimated that an additional $5 million debt could be issued
and debt service would remain the same. The five year plan does not include a possible bond election, which is currently being considered.
The tax rate changes required to meet the future needs are a decrease of 2.49 cents in FY19/20, a decrease of 1.21 cents in FY20/21, a
decrease of 1.68 cents in FY21/22, and a decrease of 0.02 cents in FY22/23. Please see the following page for the underlying
assumptions of the financial forecast.

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