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City of Saginaw Public Safety Levy Analysis

Police and Fire Budgeting Issues. 1.2 million pension funding liability increase over 2006.Increased employment costs of approximately $550,000.$200,000 General Fund cost reallocation.Equals over 1.95 million dollars increase in police and fire budget from 2006 to 2007.. Ramifications of Police

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City of Saginaw Public Safety Levy Analysis

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    1. City of Saginaw Public Safety Levy Analysis Prepared by: Darnell Earley, City Manager Deeann L. Bragg, CPA Budget Officer

    2. Police and Fire Budgeting Issues 1.2 million pension funding liability increase over 2006. Increased employment costs of approximately $550,000. $200,000 General Fund cost reallocation. Equals over 1.95 million dollars increase in police and fire budget from 2006 to 2007.

    3. Ramifications of Police and Fire Budgeting Issues With no increase in revenue, in order to balance the budget we would have to first decrease staffing levels by 11 unfilled fire positions. Savings from elimination of 11 firefighters = 480,000 Balance of deficit remaining to cover = $1,470,000

    4. Ramifications of Police and Fire Budgeting Issues (cont) The second step would be to eliminate filled positions of 20 firefighters and 26 police officers. Average initial savings per cut = $64,000 Average pension contributions lost = (5,200) Average net savings per cut = 58,800 Unemployment compensation per cut= (9,000) Average pto and comp time payout = (17,800) Realized average savings per cut = $32,000 x 46 1,472,000

    5. Budgeting Issue In order to maintain status quo of the Police and Fire staffing levels, a special assessment levy is needed.

    6. Total Public Safety revenue based on 2006 City of Saginaw tentative taxable value of Ad Valorem Real:

    7. Public Safety Levy A 4 mill levy would only cover current year funding deficits. Proposed creation of a special assessment levy of 6 mills over a 5 year period. Note: A public safety millage would be levied on real property only (not on personal property, which is the equipment used by a business).

    8. Goals Provides time and resources to develop and implement a 5 year plan intended to restructure and enhance Police and Fire safety, as well as other areas of Government Services. Maintains current staffing, eliminating the need to cut 20 firefighters and 26 police officers – in essence, adding 20 fire fighters and 26 police officers over what there would be with no millage. Stabilize Public Safety services and ensure the most effective and efficient use of all available resources.

    9. Public Safety Levy Annual Cost to the Average Homeowner for 5 years Example Home Valuations: 50,000 Market Value 25,000 State Equalized or Assessed Value 21,000 Taxable Value

    10. Homeowner Advantages For approximately 35¢ a day, the average City of Saginaw homeowner can make an investment in the City, which, in turn, becomes an investment in their home, their neighborhood, and the future of their community.

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