Saginaw staff proposes de minimis tax rate as budget prioritizes employee pay raises and one-time projects

Miss Kim, the city's budget presenter, told the Saginaw City Council that the proposed FY 2024–25 tax rate will be the de minimis rate and that the proposed budget both funds a large pay-plan increase and draws down fund balance to cover one-time requests.

The budget presentation, given during a council workshop, laid out revenue and expense assumptions and next steps for public notice. Miss Kim said, “The proposed tax rate is equal to the de minimis tax rate,” and that the de minimis rate is about half a cent lower than the current rate. She framed the budget as "structurally balanced," noting ongoing expenses are covered by ongoing revenues while about $1.8 million of fund balance would be used for one-time items.

Why it matters: adopting a proposed rate for public notice starts the legal process that leads to a public hearing and a final adoption vote. Because taxable values rose, Miss Kim said the proposed rate would still increase the typical homeowner's bill: she estimated the average home value rose from $248,000 to $258,000 and that the average homeowner would see an estimated annual tax increase of about $36.35 under the proposed rate.

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