Page 39 - GFOA Draft 2

CITY OF SAGINAW
BUDGET PROCESS

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 October 1st, 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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