Page 38 - GFOA Draft 2

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.

PREPARATION
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, Finance Director, and the Finance Manager). 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 documentation that might be needed. At this time each

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