Page 309 - Saginaw FY22 Adopted Annual Budget

EXEMPT: Personnel not eligible to receive overtime pay and who are expected to put in whatever hours
are necessary to complete their job assignments. The respective department head, as partial
compensation for overtime hours worked by exempt personnel, may allow compensatory time off.

EXPENDITURE CLASSIFICATION: A basis for distinguishing types of expenditures. The major
classifications used by the City are Personnel, Operations, Capital Outlay, and Debt Service.

EXPENDITURES: A decrease in the net financial resources of the City due to the acquisition of goods
and services.

FIRM PUMPING CAPACITY: The total pumping capacity that a pump station can deliver with the largest
pump out of service. The state requires that water systems have firm capacity that meets peak day
requirements.

FISCAL YEAR: A 12-month period to which the annual operating budget applies. The City of Saginaw
has established October 1 through September 30 as its fiscal year.

FIXED ASSETS: Assets of a long-term character that are intended to continue to be held or used.
Examples of fixed assets include items such as land, buildings, machinery, furniture, and other
equipment.

FRANCHISE TAX: This is a charge paid for the use of City streets and public right of way and is in lieu
of all other municipal charges, fees, street rentals, pipe taxes or rentals, easement or other like franchise
taxes, inspections fees, and/or charges of every kind except ad valorem and special assessment taxes
for public improvements (electric, gas, telephone, and cable TV).

FULL-TIME EQUIVALENT (FTE): The number of hours part-time employees work is added together
and then divided by the number of hours a full-time employee works. The result is the number of full-
time equivalent employees.

FULL FAITH AND CREDIT: A pledge of the general taxing power of a government to repay debt
obligations. (The term is typically used in reference to general obligation bonds.)

FUND: An accounting entity with a self-balancing set of accounts that record financial transactions for
specific activities or government functions. The major funds used by the City of Saginaw include the
General Fund, the Debt Service Fund, the Capital Projects Fund, Crime Control and Prevention District
Fund, Drainage Utility Fund, Street Maintenance Fund, and the Enterprise Fund.

FUND BALANCE: The assets of a fund less liabilities, as determined at the end of each fiscal year. The
excess assets after liabilities are deducted are referred to as surplus funds.

GENERAL FUND: The fund used to account for all financial resources except those required to be
accounted for in the City's other funds.

GENERAL OBLIGATION BONDS (G.O.): A security issued by a municipality for the purpose of paying
contractual obligations incurred with the constructing and equipping of various public projects such as
streets, buildings and improvements. G.O.’s require voter approval and are backed by the full faith and
credit of the issuing government.

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