Page 36 - Saginaw FY19 Annual Budget
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documentation that might be needed.  At this time each department is asked to discuss
               the five year plan including future staffing and capital requests.  After these meetings the
               administrative  staff  prepares  a  draft  copy  of  the  budget.    It  is  at  this  time  that  the
               administrative staff decides whether to include cost of living raises, increase benefits,
               special requests, increase service levels etc.

               In July certified property tax values are received from the appraisal district.  Based on the
               certified taxable value received from the appraisal district, the estimated tax revenue is
               adjusted if needed.  The effective tax rate is calculated and the tax rate needed to meet
               budget requirements is determined.  The Finance Director, under the direction of the City
               Manager and Assistant City Manager, then prepares the proposed budget document,
               posts, and publishes the required notices.  The proposed budget is given to the Mayor
               and Council to review.

               ADOPTION
               At  the  August  City  Council  meetings,  the  City  Manager  presents  the  final  Proposed
               Budget  and  discusses  priorities  for  the  coming  year.    Council  reviews  and  discusses
               special requests and any additional budget priorities.  The Council decides what items
               will be included in the budget and what type of funding will be needed based on the City
               Manager’s recommendations.  The council must decide if they are going to increase the
               tax rate, use undesignated surplus, increase fees, incur debt, seek grants, etc. to fund
               the budget.  They may increase or decrease the cost of living raises, benefits, etc. added
               to the budget by administrative staff.  These decisions are made in accordance with the
               financial policies of maintaining adequate fund balances, using fund balance for one- time
               expenses, and meeting debt service requirements.

               At the direction of the City Council, the Proposed Budget may be revised.  The Proposed
               Budget  is  filed  with  the  City  Secretary  and  is  made  available  for  inspection  by  any
               interested person during office hours.  It is also posted on the City’s website.  The City
               Council holds a Public Hearing on the proposed budget and gives at least ten days notice
               of the Public Hearing in the official newspaper.  The Finance Director is responsible for
               posting and publishing the required notices.  After the Public Hearing, and before October
                 st
               1 , the Council must vote to adopt the budget and set the tax rate.  The budget is adopted
               by  resolution  approved  by  the  favorable  votes  of  at  least  four-sevenths  (4/7)  of  the
               Council.    The  adopted  budget  is a  public  record  and  a  copy  is  on  file  with  the  City
               Secretary.  A copy of the adopted budget is also filed with the County Clerk.

               IMPLEMENTATION
               Once  the  budget  is  adopted,  detailed  account  information  is  compiled  in  the  Budget
               Guidelines document.  The Budget Guidelines document lists each line item and includes
               detailed support because it is used by the departments as a guide for operating their
               department.  The City Manager is required to furnish the Council with monthly reports which
               show  the  prior  month's  expenditures  and  total  expenditures  to  date for  each  budgeted
               activity.   At mid-year the City Manager and Department Heads review the monthly reports
               to see how the revenue and expenditure predictions have fared, how well the departments
               have performed, and whether budget revisions are necessary.  The budget revisions are
               normally revisions to individual line items.  This allows for a better year end projection for
               use in the next year’s budget work session.  Usually the departments’ overall totals remain




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