Page 35 - Saginaw FY20 Annual Budget
P. 35

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. A workshop was held with the City Council in March
               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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