Page 54 - CityofSaginawFY25Budget

CITY OF SAGINAW
5-YEAR FUND SUMMARY
Explanation of Variances

Note 1 - The $910,631 use of General Fund balance is for one time capital and land purchases and partial funding for the Bailey Boswell
Overpass project. The Debt Service Fund drawdown of $103,266 is to mitigate the impact of the 2020 issuance of certificates of obligation
on the tax rate. The $1,049,863 surplus in the Capital Projects Fund reflects the use of previously issued bonds for the Bailey Boswell
Overpass project, design and construction of the Central Fire Station, design of Old Decatur Road north, Knowles Drive, intersection
improvements and a traffic signal at Knowles and Bailey Boswell offset by the sale of 2021 General Obligation Bonds. The $325,117
surplus in the CCPD Fund reflects strong sales tax collections and a one time sales tax audit adjustment. The $537,5667 surplus in the
Drainage Utility Fund reflects the delay of the East Cement Creek Drainage project. The $151,800 surplus in the Street Maintenance Fund
reflects strong sales tax collections and a one time sales tax audit adjustment, as well as, the delay of several street maintenance projects
due to staffing shortages. The surplus in the General Escrow Fund is due the establishment of a health insurance rate stabilization escrow
and developer escrows for future projects. The is drawdown in the Enterprise Escrow Fund is for funding of the Saginaw Boulevard 16"
water line phase 2. The $646,097 surplus in the Enterprise Fund is due to stronger that budgeted water sales.

Note 2 - The $204,512 addition to General Fund balance is due to strong sales tax collections and vacany savings partially offset by one
time capital purchases. The planned $98,549 drawdown of the Debt Service Fund is due to the use of previous year excess property
collections required by state statue. The $12,464,175 increase in the Capital Projects Fund reflects bond proceeds for the Library/Senior
Center construction project partially offset by the use of previous bond proceeds for the Fire Station and Phase 1 of Knowles Drive
improvements. The $595,813 surplus in the CCPD Fund is due to strong sales tax collections and the delay in vehicle purchases due to
limited supply. The $589,398 surplus in the Drainage Fund is due to the delay of the East Cement Creek Drainage project. The $406,235
surplus in the Street Maintenance Fund reflects the delay of several street projects due to staffing shortages. Funding for these projects
will be appropriated when a revised work schedule is available. The $71,728 surplus in the Donations Fund reflects more collections than
expenses for the Library and Beautifcation. These funds will be allocated for future programs. The $137,435 surplus in the General
Escrow Fund reflects a transfer from General Fund for future equipment replacement, as well as, more collections for court security and
hotel/motel tax than budgeted expenses. A Beltmill Public Improvement District was created this year with the collection of $22,745. The
increase of $46,387 in the Enterprise Escrow Fund is due to the transfer from the Enterprie Fund for future capital outlay replacements.
The Increase of $1,498,080 to the Enterprise Fund balance is due to stong water sales and increased watewater service collections as well
as vacancy savings and the delay of Beltmill Booster Pump Station and Fairmount Sewer Rehabilitation projects.
Note 3 - The $1,627,446 increase in General Fund balance is due to strong sales tax collections, interest earnings, contruction inspection
fees, increased grant receipts (related to American Rescue Plan Act reimbursements), and vacany savings partially offset by one time
capital purchases. The increase of $217,268 in the Debt Service Fund is due higher than budgeted interest earnings. The $9,946,119
increase in Capital Projects Fund reflects the sale of bonds for Park Improvement projects and Phases 2 and 3 of Knowles Drive partially
offset by the use of previously issued bonds for Knowles Drive Phase 1, Fire Station #1, and sidewalk improvements. The $90,514 surplus
in the CCPD Fund is due to strong sales tax collections and higher interest earnings partially offset by the replacement of patrol vehicles,
bullet resistant vests, and associated equipment. The $1,433,224 decrease in the Drainage Fund is due to the construction of East
Cement Creek Drainage project. The $92,001 is a surplus in the Street Maintenance Fund due to increased sales tax collections and
interest earnings and will be used for the Pavement Replacement Program projects. The $93,922 surplus in the Donations Fund reflects
more collections than expenses for the Library and Beautification. These funds will be allocated for future programs. The $1,125,126
surplus in the General Escrow Fund reflects a transfer from General Fund for economic development incentives, health insurance savings
to offset future health expense increases, and the collection of developer fees for future improvements to North Old Decatur Road. The
Beltmill Public Improvement District collected assessments with only administrative fee exepnses. The decrease of $230,030 in the
Enterprise Escrow Fund balance is due to the transfer to the Enterprise Fund for the Northwest Booster Pump Station. The increase of
$1,043,949 in the Enterprise Fund balance is due to strong water sales, increased wastewater service, and interest earnings partially offset
by the increased cost of water and wastewater service.

Note 4 - The $420,630 increase in General Fund balance is due to increased sales tax collections, additonal buidling permits due to the
residential developments, and higher interest earnings. The increase of $73,805 in the Debt Service Fund is due to higher than budgeted
interest earnings. The $14,103,295 drawdown in the Capital Projects Fund reflects the use of previously issued bond proceeds for the
second and third Phases of Knowles Drive reconstruction, the construction of the Library and Senior Citizen's Center, and Park
improvements. The $371,275 reduction in the CCPD Fund is due to increased sales tax collections and interest earnings offset by patrol
vehicle purchases, training materials, and the CAD/RMS conversion. The $977,325 reduction in the Drainage Fund is due to the purchase
of equipment and completion of the East Cement Creek Drainage project. The $352,060 increase in the Street Maintenance Fund is due to
increased sales tax collections and interest earnings, as well as, the delay in several street maintenance projects due to the limited
avavilability of the street repair crews. The $695,040 surplus in the General Escrow Fund reflects a transfer from General Fund for future
equipment replacement based on estimated replacement cost, a transfer from General Fund for future health insurance increases, and
increased interest earnings. The $441,280 use of fund Beltmill Public Improvement District fund balance is due to a planned developer
reimbursement. The $102,290 increase in TIRZ #1 fund balance is due to interest earnings and lower administrative fees. The $153,590
use of Enterprise Escrow Fund balance is for Northwest Booster Pump Station. The $563,865 use of Enterprise Fund balance is due to
higher water and wastewater service collections and interest earnings offset by higher wastewater service costs and one time capital items
and the Northwest Booster Pump Station project.

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