Birmingham Outlines Plans for Tighter Budget

Birmingham is preparing to finalize its 2011-12 budget, and even though economic conditions are improving, times are still tough.

According to City Manager Bob Bruner, the economic climate creates extra pressure on government budgets, and it's becoming difficult to offer the same services Birmingham has come to expect.

"Although economic conditions continue to improve in the private sector, city budgets tend to lag economic conditions by 18 months or more," he said.

The proposed 2011-12 budget is about $60.4 million, down 10 percent from the last fiscal year. Total estimated operating revenue is expected to come in at $53.9 million, down 4.1 percent from 2010-11.

The general fund is budgeted for about $25.2 in 2011-12. The fund is the portion of the budget that supports services traditionally associated with local government, such as public safety and city services.

Birmingham has budget challenges in several areas. As part of a plan to reduce Michigan's $1.4 billion budget deficit, Gov. Rick Snyder has proposed reducing the state's statutory revenue-sharing with municipalities. Birmingham's budget document says the state has already reduced statutory revenue-sharing programs by 31.6 percent in the past 10 years.

According to Assistant City Manager Joe Valentine, , or $2.9 million.

Property taxes are declining. The city's total taxable value decreased by 11.1 percent in 2010-11. The city projects an additional decrease of 5 percent for 2011-12 and 2.52 percent for 2012-13. Residents will pay less in taxes, and the city will collect less revenue.

Birmingham Patch has compiled a review of Birmingham's proposed 2011-12 budget. The breakdown includes:

According to Bruner, the City Commission will consider the 2011-12 budget at its May 23 meeting. It must adopt a budget on or before the second Monday in June.