Page 27 - Saginaw FY20 Annual Budget

CITY OF SAGINAW

BUDGET HIGHLIGHTS
2019-2020

 Fees for Recreation and Aquatic Center use, facility rentals, and summer camp fees are
increasing which results in an estimated revenue increase of $48,840.

 Security alarm permit fees will increase from $10 to $15 per year resulting in a $3,000
increase in revenue.

 The City of Lake Worth will pay for 50% of the cost of the new Emergency Manager
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position (starting date of April 1 2020) resulting in revenue of $23,870.

 This will be the second year for the rental inspection program. It is anticipated that most
of the rental units will qualify for the certified rate of $50 and not the $75 fee paid in the
first year.

 Interest earnings are projected to be down due to the lower fund balance, used to pay
for one-time items, and declining interest rates.

 The cost of employee health insurance is budgeted to increase by 22%. We will
continue our coverage with United Health Care. The cost of dental insurance with United
Health Care will remain the same as we are in year two of a two year agreement. The
Insurance Review Committee reviewed the proposal and made recommendations for
plan options that are available to employees wishing to reduce their out of pocket
expense. The estimated increase in the General Fund is $221,855 and $30,915 in the
Enterprise Fund. The City will continue to provide a $365 per month contribution for
dependent coverage.

 In an effort to remain competitive and retain the employees that we have invested in, the
proposed budget includes a 3% salary adjustment. The minimum and maximum of the
pay ranges will be adjusted. The estimated increase in the General Fund is $299,700
and $36,155 in the Enterprise Fund.

 Funding is included for the necessary advertising expense ($20,000) anticipated for a
May 2020 public improvements bond election.

 Funding of $10,000 is proposed for employee programs including tuition reimbursement,
employee recognition, and a banquet or picnic event.

 The proposed budget includes $7,500 funding for community outreach programs.
Programs may include a “sister city”, expenses related to the Mayor’s Youth Advisory
Council, informational brochures and “town hall” meetings.

 An electronic time keeping system for Aquatic Center personnel is proposed ($4,370)
including equipment and ongoing operating expense.

 Funding of $1,500 is proposed to begin using a third party to provide employment
background checks.

 Continued funding of $37,450 for a financial planning consultant is included. The work
done in the current year will continue to provide long term financial planning, trend
analysis, sales tax forecasting and water and sewer rate analysis.

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