Page 26 - Saginaw FY21 Annual Budget

CITY OF SAGINAW
BUDGET HIGHLIGHTS
2020-2021

The following is a brief overview of the adopted 2020-2021 budget:

GENERAL FUND:

 Saginaw continues to see growth in population and the estimated net taxable value
compared to July 2019 has increased by 3.4% largely due to the completion of nine
residential subdivision phases.

 Saginaw’s population has grown from 12,374 in 2000 to 19,806 per the 2010 census.
The estimated 2020 population is 23,090.

 Property tax values are up. The July certified estimated net taxable value from TAD is
$2,198,509,226. This is an increase of $72,552,463 over last year’s July estimated net
taxable value of $2,125,956,763. We had a total of $56,778,169 in added value from
new construction ($44,468,311 in residential and $12,248,328 in commercial). New
construction for 2019-2020 was valued at $63,147,306.

 This budget is based on a tax rate of 0.461579 which is 0.2579 cents higher than last
year’s rate of .459000. The calculated No New Revenue tax rate is .457966 The Voter
Approval tax rate of .484903 was calculated at 8% due the state of emergency
declaration for the COVID-19 pandemic.

TAX DEBT M&O SALESTAX
YEAR RATE RATE ADJUSTMENT TOTAL AVG. TAX
2019 .177345 .281655 (.078581) .459000 $817.50
2020 .177341 .284238 (.081169) .461579 $868.23
DIFFERENCE OVER (UNDER) LAST YEAR .002579 $ 50.73

 The average taxable single family home value in 2019 was $178,105. The average
taxable single family home value in 2020 is $188,101, an increase of 5.6%. The average
homeowner’s city taxes will increase annually $50.73 from $817.50 to $868.23 or $4.23
per month. For $72.62 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 and has been impacted by
different spending habits and restrictions in place during the COVID-19 pandemic.
Saginaw has seen overall increases during these uncertain times due to our business
demographics. The budgeted estimates for next fiscal year assume a “normal” year
without the large monthly increases experienced in the current year. The current year
end estimate is up more than 7% over the current year budget. We estimate that we will
receive $5,392,875 in sales tax revenue, a 6% increase over our current year adopted
budget. 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.

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