City of Saginaw Financial Situation FY 2022
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EmailThe city of Saginaw continues to face a number of economic and financial headwinds in both the short and long-term.
The city of Saginaw continues to face a number of economic and financial headwinds in both the short and long-term. This blog post is based on the financial audit report form June 30, 2022.
The city’s general fund revenues were flat as compared to 2021. The main areas of growth were in operating grants and a major increase of almost $2 million in city income taxes. The other revenues such as property taxes and state revenue sharing, were flat over the last year and there was a drop in miscellaneous and operating grant revenue.
City general fund expenses were up almost 10% or $3 million. This was almost entirely due to public safety as other costs were flat. Public safety represents 62% of the city general fund. The city operating surplus was over $6 million in 2021 and has dropped to $3 million in 2022. There are transfers out to other funds of ovetr$1.6 million. Therefore, the city’s fund balance or savings is at the level of $16 million as of 2022. This means that the city general fund savings represents almost 50% of typical expenditures which is very high level and reduces the city vulnerability to any number of fiscal or economic risks.
As of June 30, 2022, the city had a total of $51 million in unexpended American Rescue Plan Act monies. The city had reported expenditures from this fund of $1.0 million.
Saginaw had an important situation related to its retiree health care plan. The city was able to reduce its long-term retiree health car liability from $254 million in 2021 to $144 million in 2022. This was done, according to the audit, by shifting post-65 retirees to Medicare Advantage and an increased discount rate.
