City budget boosts employee pay while lowering tax rates

In a recent government meeting, officials discussed significant amendments to the proposed budget for the city of Saginaw, highlighting key changes aimed at enhancing community services and employee compensation.

The budget now includes a temporary full-time building maintenance position for two years, costing $94,200, and a one-year contract for weekly deep cleaning of the community center at $9,620. To accommodate these additions, the budget eliminated the HBR subscription and MTCAR membership, saving a total of $450. The overall proposed general fund expenditures now stand at $26,226,025.

A notable point of discussion was the anticipated increase in the tax rate, projected to add approximately $3 per month for the average homeowner, bringing their total monthly tax contribution to about $106. This increase is expected to support essential services such as fire, police, public works, and library services.

Sales tax revenue has seen a 5% increase, contributing positively to the city's financial outlook. Additionally, the city plans to absorb a 3.3% increase in employee insurance costs, ensuring that this burden does not fall on city employees.

A compensation study was also a focal point, recommending adjustments to employee pay to align with market standards. Officials expressed their commitment to retaining skilled employees by ensuring they are compensated fairly, acknowledging the challenges of employee retention in recent years.

Other budget highlights included the addition of a part-time position for the city secretary and a public works coordinator, both deemed necessary for improving city operations. The meeting underscored a commitment to responsible financial management while enhancing services and employee satisfaction within the community.