2008-2009 - Saginaw County

Sheriff Road Patrol Millage Fund – NO CHANGES
No changes in the Sheriff Road Patrol Millage are made to this 2009 Budget. 100% of the millage
money derived from a .3394 mill tax levy, which is estimated to bring in $1,720,000 in Fiscal 2009, will
be expended to pay for 14.5 Road Patrol Officers at an average total cost of service of $118,700 per
officer for Fiscal 2009. All millage monies for the Road Patrol Fund are collected separate, accounted
for separate, and audited separate. All the funds support the activities of the 14.5 Road Patrol Positions.
Delinquent Tax Revolving Fund
The contribution from the Delinquent Tax Revolving Fund has been reduced from its normal
contribution of $1,650,000 by $100,000. This action was taken as the expected reserves at year end may
fall below the current policy limit. Therefore, a reduction in General Fund revenues of $100,000 has
been reflected in the Contributions from Other Funds.
Use of Reserves
GENERAL FUND RESERVE BALANCES
This Fiscal 2009 Budget does not use reserves to balance the budget. The use of reserves is budgeted at
zero. Last year the Board approved a budget that used nearly $3,000,000 in reserves. The year before
the County General Fund actually spent $2,000,000 million of reserves.
Budget Stabilization Reserve
On May 22, 2007 the Board of Commissioners approved Appropriations Committee Report 4.2. This
report amended the County’s Specific Fund Balance Policy. Through this amendment the County
reduced certain reserve levels and eliminated others. The same Board action that amended the County
reserve policies on May 22, 2007 established that the County will carry a Budget Stabilization Reserve
at a minimum level of 5% of the most current Board Approved General Fund Budget. This 2009 Budget
does contain a reserve for Budget Stabilization per the policy amount of 5% of the proposed General
Fund Budget in the amount of $2,228,475. This reserve is considered the County’s “rainy-day” fund
and can only be appropriated for use upon majority vote of the Board of Commissioners.
Cash Flow Balance Reserve
The same Board action that amended the County reserve policies on May 22, 2007 established that the
County will carry a Cash Flow Reserve with a minimum amount of 50% of the most current Board
Approved General Fund Budget for property tax collections. This level of Cash Flow Reserve is
required in the General Fund as property tax revenues are not receipted until the 11 th and 12 th month of
the fiscal year. By law the County can only borrow tax anticipation notes up to a level of 50% of its
expected tax collections, thus the minimum cash flow reserve is required to be the other 50% of tax
collections. This 2009 Budget does contain 50% of the expected 2009 property tax collections per
policy in the amount of $12,352,345.
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