Page 306 - CityofSaginawFY25Budget

CITY OF SAGINAW
GENERAL AND DEBT SERVICE FUND FIVE YEAR FORECAST

ADOPTED ESTIMATED ESTIMATED ESTIMATED ESTIMATED
2024-2025 2025-2026 2026-2027 2027-2028 2028-2029
GENERAL FUND
BEGINNING RESOURCES $ 14,314,184 $ 12,403,309 $ 11,903,309 $ 11,378,308 $ 10,827,058
REVENUES
Current Property Taxes $ 8,510,845 $ 9,468,531 $ 10,099,599 $ 10,843,374 $ 11,448,529
Sales Tax 7,649,320 7,649,320 7,802,306 7,958,353 8,117,520
Other Taxes 66,000 76,000 76,720 77,454 78,203
Franchise Fees 1,776,155 1,822,238 1,855,489 1,893,317 1,935,129
License, Permits, Fees, and Fines 2,167,515 2,229,163 2,155,794 1,979,749 1,953,879
Other Revenue 264,345 198,000 198,000 198,000 198,000
Grant Assistance 29,000 29,000 29,000 29,000 29,000
Interest on Investments 840,000 800,000 726,000 654,220 584,593
Transfers from Other Funds 3,011,970 3,085,503 3,177,740 3,273,072 3,371,264
TOTAL REVENUES $ 24,315,150 $ 25,357,754 $ 26,120,648 $ 26,906,538 $ 27,716,117
EXPENDITURES
Personnel Services $ 18,719,245 $ 19,280,822 $ 19,859,247 $ 20,455,024 $ 21,068,675
Supplies and Services 5,794,990 5,968,840 6,147,905 6,332,342 6,522,312
Capital Outlay 1,608,845 500,000 525,000 551,250 578,813
Transfer to Other Funds 102,945 108,092 113,497 119,172 125,130
TOTAL EXPENDITURES $ 26,226,025 $ 25,857,754 $ 26,645,649 $ 27,457,788 $ 28,294,930
ENDING RESOURCES $ 12,403,309 $ 11,903,309 $ 11,378,308 $ 10,827,058 $ 10,248,245

Restricted Resources 6,556,506 6,464,439 6,661,412 6,864,447 7,073,733
Unrestricted/unreserved Resources 5,846,803 5,438,870.25 4,716,896.28 3,962,611.42 3,174,512.83

Increase/(Decrease in Fund Balance) $ (1,910,875) $ (500,000) $ (525,000) $ (551,250) $ (578,813)
DEBT SERVICE FUND
BEGINNING RESOURCES $ 1,555,527 $ 1,471,602 $ 1,471,602 $ 1,471,602 $ 1,471,602
REVENUES
Current Property Taxes $ 6,751,580 $ 8,014,385 $ 8,159,875 $ 7,860,835 $ 8,303,035
Other Revenue 162,000 140,335 115,335 115,335 115,335
TOTAL REVENUES $ 6,913,580 $ 8,154,720 $ 8,275,210 $ 7,976,170 $ 8,418,370
EXPENDITURES
Principal Payments - Bonds $ 3,880,000 $ 4,645,000 $ 4,875,000 $ 5,210,000 $ 5,315,000
Interest Payments - Bonds 3,096,905 3,488,500 3,378,350 2,743,650 3,080,170
Other Expenses 20,600 21,220 21,860 22,520 23,200
TOTAL EXPENDITURES $ 6,997,505 $ 8,154,720 $ 8,275,210 $ 7,976,170 $ 8,418,370
ENDING RESOURCES $ 1,471,602 $ 1,471,602 $ 1,471,602 $ 1,471,602 $ 1,471,602
Increase/(Decrease in Fund Balance) $ (83,925) $ - $ - $ - $ -
The long range financial forecast is a planning tool only. It provides a multi-year overview of possible financial conditions. During the
annual budget process, the City Manager and City Council will assess the current needs of the City and make decisions accordingly.
The annual budget is developed within the context of the Comprehensive Master Plan, the Capital Improvement Plan, and the Department
Five Year Plans. Each year these plans are revised based on more current cost estimates, funding constraints, and changing priorities.
The above five year forecast shows the General Fund and Debt Service Funds balanced with planned drawdowns of fund balance for one
time capital purchases. The Debt Service Fund estimates are based on bond sales of $5M in FY24/25 and $12.8M in FY25/26 for street
improvements. All bonds auhorized by voters in the May 2021 bond election are projected to be issued by FY24/25. The tax rate impact
will be an increase of 4.5 cents in FY25/26 with no tax rate increase in subsequent years.

Assumptions in the forecast include an annual taxable value increase of 5%. Sales tax is projected to grow by 2% per year. Other taxes
remain the same except a gradual increase in mixed beverage tax as growth continues. There is expected growth in waste disposal and
utility franchise fees. Court fines will gradually increase as the Police Department is able to hire new recruits and be fully staffed.
Recreation fees will gradually increase as programming continues to increase as well. Transfers from other funds assumes a 3% increase
each year to reimburse the General Fund for operating costs incurred on behalf of the Enterprise, Drainage, and CCPD Funds. Personnel
Services assumes a 3% increase annually for salary and related benefits. Supplies and Services includes a 3% increase each year.
Capital Outlay is projected to be $500,000 in FY25/26 and increase approximately 5% each year. These one time capital outlays will come
from fund balance.

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