Page 37 - Saginaw FY22 Adopted Annual Budget

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 “no new revenue” 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 submitted
to the Mayor and Council for 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. After the Public Hearing, and before
st
October 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
the same or are reduced. Only if there is an unusual circumstance is a department's overall
budget total increased.

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