Page 26 - Saginaw FY19 Annual Budget

CITY OF SAGINAW

BUDGET HIGHLIGHTS
2018-2019

The following is a brief overview of the adopted 2018-2019 budget:

GENERAL FUND:

 Saginaw continues to see some growth in population and the estimated net taxable
value compared to September 2017 has increased by nearly 12.9%. With nine
residential subdivision phases recently completed or under construction, we are
anticipating up to 200 new home starts during the 2018-2019 fiscal year. The average
new home permit is currently over $305,000.

 Saginaw’s population has grown from 12,374 in 2000 to 19,806 per the 2010 census.
The estimated 2018 population is 21,730.

 Property tax values are up. The July certified estimated net taxable value from TAD is
$1,843,457,430. This is an increase of $247,575,514 over last year’s estimated net
taxable value of $1,595,881,916. We had a total of $58,928,786 in added value from
new construction ($24,867,883 in residential and $34,060,903 in commercial). New
construction for 2017-2018 was valued at $29,909,449.

 This budget is based on a tax rate of 0.471800 which is 2.32 cents lower than last year’s
rate of .495000. The rollback tax rate is 0.471806.

TAX DEBT M&O SALESTAX
YEAR RATE RATE ADJUSTMENT TOTAL AVG. TAX
2017 .210814 .284186 (.096606) .495000 $716.81
2018 .180671 .291129 (.084777) .471800 $751.61
DIFFERENCE OVER (UNDER) LAST YEAR (.023200) $ 34.80

 The average taxable single family home value in 2017 was $144,811. The average
taxable single family home value in 2018 is $159,306, an increase of 10%. The average
homeowner’s city taxes will increase annually $34.80 from $716.81 to $751.61 or $2.90
per month. For $62.63 per month the average citizen of Saginaw receives police
protection, fire protection, public services, parks, recreation, library services, animal
services, and code enforcement and inspection.

 Sales tax revenue has fluctuated from month to month but overall is about the same
compared to last year. We estimate that we will receive $4,646,000 in sales tax
revenue, a 1% increase over our year end projection for 2017-2018. The current sales
tax rate is 8.25%, which is the maximum rate allowed. Of this, 6.25% goes to the State,
1.5% to the General Fund, 0.375% to the CCPD Fund, and 0.125% to the Street
Maintenance Fund.

 Franchise fees for cable television has been declining and the estimates reflect the
trend to other entertainment options.

 The projected $50,000 decrease in court fines and fees reflect the decrease in the
number of tickets written.

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