Page 35 - Saginaw FY19 Annual Budget

CITY OF SAGINAW
BUDGET PROCESS

Budgeting is an essential element of the financial planning, control, and evaluation process
of municipal government. The City Charter requires the City Manager to prepare and
submit to the City Council a proposed budget at least forty-five days prior to the beginning
of the fiscal year.

PREPARATON
Preliminary planning began in March with department heads identifying key issues,
capital needs, and staffing requests. Workshops were held with the City Council in March
and April to discuss these key issues. The budget calendar was distributed in April.
Throughout the spring and summer budget workshops are held during regular City
Council meetings to discuss the budget issues and the five year projections for each fund.
In May budget preparation materials are distributed to department heads. In keeping with
the goals of the City, department heads are asked to update the department’s five year
plan and prepare budgets that provide for the effective operation of their department,
without major increases to expenditures/expenses, and continue to provide for the
necessary safety and quality of life for our citizens. The five year plans are used to
determine the needs of the next five years and to begin prioritizing and preparing for these
obligations. All requests for additional personnel and capital outlay purchases are not
included in the individual departments’ budget. Those items are prioritized and listed as
special requests. Special requests are submitted, in priority order, as separate items and
are considered as additions to the requested budget. Detailed support is prepared and
presented for each request.

PROPOSED BUDGET
Using the above guidelines, each department head prepares a basic line-item budget that
maintains the current level of service. In May, department heads submit the following
budget reports to the Finance Director.
 Prior year actual, current year budget, actual to date, projected year-end,
and proposed budget.
 Estimated revenue for new fiscal year based on historical figures and
carefully researched expectations of future trends.
 Special requests, prioritized and with documentation.
 Goals and strategies for the new fiscal year.
 Performance measures, prior year actual, current year, and budget year.
 Five Year Plan including future staffing and capital requests.
 Update of departmental descriptions and activities.

Each department’s budget and five year plan is reviewed by the administrative staff (City
Manager, Assistant City Manager, and the Finance Director). The administrative staff
makes changes, if necessary, to these budgets based on estimates of anticipated
revenues to fund the budget and what services they believe are necessary to run the city
effectively. After the administrative staff reviews the departments’ budgets they meet with
the department heads again to review any changes. This gives the department heads a
chance to discuss their requests with the administrative staff and present any further

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