City of Saginaw Public Safety Levy Analysis

1
City of SaginawPublic 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.