2012 Operating Budget

2012 Approved General Government Operating Budget

When the Administration started working in July on its proposed budget for 2012, it once again face a challenge.  Just as in the last two years, a continuation budget to fund the same level of service in 2012 was projected to increase $19.5 million:

  • $12.4 million for salary and benefits;
  • $1 million for contractual and other obligations; and
  • $6.1 million for debt service on voter-approved bonds.

At the same time, property tax revenue could only increase $4.6 million even if the Municipality taxed the full amount allowed under the Tax Limit and other revenue was expected to increase about $4.5 million.  Additionally, fund balance use of $4.7 million in 2011 could not carry forward to 2012.

Once again, the cost to maintain the status quo far exceeded revenue.  A total of $15.0 million in savings had to be found.

2012 Budget Challenge (in millions)
2011 Total Budget $ 443.2
   
Spending Increases  
Labor $ 12.4
Non-Labor $ 1.0
Dept $ 6.1
Continuation Level $ 462.7
   
Funding Changes  
Tax to Cap $ 4.6
Non-property taxes $ 4.5
2011 Fund Balance Use (net) $ (4.7)
Continuation Revenue $ 4.4
   
2012 Challenge $ 15.0

Mayor’s Priorities

The Mayor’s goal was to propose a budget in October that met his commitment to public safety.  In 2011, 29 new firefighters and safety officers were added to the budget.  While a Federal grant pays 60% of their cost, an additional $1.7 million in local funds is required in 2012 to cover the full year cost of the additional fire fighters.

Also, a 28-person Police Academy was funded in the 2011 Revised Budget, with another 2 recruits added, all to start in October 2011.  The full-year Academy cost in 2012 adds $1.3 million to the budget. 

But in addition to limited revenue and these and other required increases, the Mayor still was determined to minimize the impact on direct services from budget reductions.

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