Update on 2012 Budget

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On Monday, March 12 the City Council Budget Committee received an update on the 2012 budget, and 2011 tax revenue collections.

Preliminary estimates indicate that 2011 General Fund revenue collections were $4.6 million above projections, and $26 million higher than in 2010.

The result is that fiscal year 2011 will have a roughly $17 million balance, $12 million more than expected. $5 million of this is from revenue, and $7 million from under spending. Under city policies, half of the balance will go toward replenishing the Rainy Day Fund. The remaining $6 million will serve as a cushion for 2012.

The state budget under consideration could result in less revenue for the City for 2012 and 2013, so this is timely news. In any case, there will be no mid-year reduction in the budget, a welcome relief from most recent years.

Mayor McGinn has directed most city departments to set a 1% under spend target in for General Fund-dependent departments, and 0.5% for Police, Fire and Human Services, in order to prepare for 2013.

The meeting can be viewed at the Seattle Channel website.