The FY 2022 proposed budget reflects the City’s commitment to provide quality services to residents, while preserving the City’s long-term financial viability. The total citywide budget is projected to be $132.4 million, which represents a $7.6 million, or 6.09% increase from the 2021 approved budgeted levels. The General Fund Budget for FY 2022 is projected to be $37,792,871.
The FY 2022 Proposed Budget is very conservative. The City will realize a few additions,
reallocations, and reclassifications to staffing for FY 2022. The City is also budgeting for the contractual wage increases, step and longevity increases for city employees, as well as increases in benefit costs such as healthcare and pensions.
Although the budget is balanced, there are many challenges that the City of Saginaw
must face and overcome in order to be in a positive position for the future. One of the largest variables that continues to affect the FY 2022 budget is the COVID-19 pandemic. Fortunately, with the passage of the American Rescue Plan relief package, financial assistance is forthcoming. The City of Saginaw has been allocated a significant amount of these American Rescue Plan funds. City administration will continue to seek guidance from the Federal Government on how these funds may be allocated.
The FY 2022 budget also addresses funding in both water and sewer operations toward replacement of the lead and copper galvanized lines. Finally, funding for the Other Post-Employment Benefits (OPEB) and Pension Liabilities remain a concern for the City of Saginaw. The FY 2022 budget continues to address funding of these unfunded liabilities and allocates funds towards both obligations.
Yolanda M. Jones, Director of the Office of Management and Budget, commented on this year’s budget, “The economy has forced everyone to make adjustments to the way they live. As our community changes, so does the City of Saginaw as an organization. The budget is a fluid document, and this is an ongoing, ever-changing process. Although approved, we must constantly monitor and adjust the budget as necessary. We will continue to present these required adjustments to council for approval.”
The goal of the city administration is to maintain the financial health and help build the city to become all that it can be, even in the unknown future. City Manager Tim Morales commented on these efforts, “City administration continues to take a proactive approach to financial planning, organizational development, and citizen engagement initiatives. Although this has been a challenge, we will continue to provide residents with the very best services possible with the resources we have available. We will continue to increase our presence in the community, while maintaining a budget that is solvent and sustainable.”
The FY 2022 Proposed Budget is available on the City of Saginaw website at https://cms5.revize.com/revize/cityofsaginawmi/Documents%20Center/Department/Office%20of%20Management%20and%20Budget/Budget/2021-22-Proposed-Budget-Document.pdf To view the presentation on the FY 2021-2022 Proposed Budget, click here.