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CITY OF SAGINAW, TEXAS

FINANCIAL MANAGEMENT POLICIES

VI. Comprehensive and Strategic Planning

The Saginaw Comprehensive Plan is the City' s comprehensive plan to preserve,
promote and protect public health and general welfare, prevent overcrowding,
ensure adequate transportation, availability of necessary utilities and services, and
conserve and protect the City' s natural resources. The City' s budget is the Annual
Operating Plan element of the Comprehensive Plan.

The Comprehensive Plan is founded on strategic objectives or " policy areas" that
are reviewed at least every five years. Funding of City programs should be based
upon the objectives set forth in the Master Plan.

VII. Operating Budget

A. Budget Preparation
The City Manager will file annually a balanced budget (estimated expenditures will
not exceed estimated resources) with the City Council in compliance with the City
Charter and state law. The budget process shall span sufficient time to address
policy and fiscal issues by the City Council.
B. Balanced Budget
The annual operating budget will be structurally balanced, recurring revenues will

fund recurring expenditures/ expenses. Fund balance or non- recurring revenues
will only be used for non- recurring expenditures/ expenses.
C. Legislative Role
The budget process will be coordinated to identify major policy issues for City
Council consideration prior to the budget approval date so that sufficient analysis
can contribute to informed decision making.
D. Adoption process
The budget adoption process will comply with both City Charter and state law
requirements. The budget shall be adopted by the favorable vote of a majority of

the City Council.
E. Forecasting
Annual estimates of revenues and expenditures shall be based on historical trends
and reasonable expectations and assumptions regarding growth, the state of the
economy, and other relevant factors. A conservative approach shall be observed
in estimating revenues.

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