The city of 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, tough economic times create 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.
Quick facts
- The 2011-12 budget is $60,380,417 — down 10 percent from last year.
- Total estimated operating revenues are expected to be $53.9 million — down 4.1 percent from last year.
- The General Fund has $25,238,520 for 2011-12.
- State revenue-sharing programs have decreased 31.6 percent in 10 years and Gov. Rick Snyder has plans for even more cuts. Birmingham receives 5 percent of its budget from the state.
- Property taxes are on the decline. The city is projecting a 5 percent decline in taxable values for 2011-12, and 2.52 percent for 2012-13.
The plan
The city has outlined the following plan to respond to budget challenges:
- Employ a combination of cost reductions
- Continue to reduce the size of the city's workforce
- Evaluate fees and charges
- Conduct a comprehensive review of government actions
- Divest nonessential services and identify new service delivery
- Work to increase collaboration and service sharing
The timeline
- July: Beginning of the fiscal year
- Aug: City releases preliminary final financial report for previous year
- Sept: Prepare budget manual for upcoming year
- Oct: Provide budget manual to departments
- Nov: City audit presented to city commission
- Dec: Revenue/expenditures estimates prepared
- Jan: Department budget preparations continue; long-range planning session
- Feb: City manager reviews budget requests; recommended budget prepared
- March: Board of Reviews begins assessment
- April: Recommended budget presented to city commission; commission holds budget deliberations and a public hearing
- May: Public hearing on budget; budget adopted
- June: End of the fiscal year; city holds annual audit
On or before the second Monday in June, the city commission adopts the budget by an affirmative vote of a majority of its seven members. Upon final adoption, the budget becomes the authority for the various agencies and departments.
Total revenues and expenditures
| 2009-10 | 2010-11 | 2011-12 | 2012-13 | |
| Total Revenues | $59.1 million | $58.1 million | $58 million | $57.5 million |
| Total Expenditures | $61.8 million | $64.2 million | $60.4 million | $59.4 million |
| Net Gain (Loss) | ($2.6 million) | ($6.1 million) | ($2.3 million) | ($1.9 million |
Total fund balance
The city's fund balance represents the city's net cumulative net income or loss after budgeting in projected revenues and expenses.
| 2009-10 | 2010-11 | 2011-12 | 2012-13 | |
| Year Start Fund Balance | $99 million | $99.4 million | $97.6 million | $98.3 million |
| Year End Fund Balance | $99.4 million | $97.6 million | $98.3 million | $98.8 million |
| Fund Balance Increase (Decrease) | $450,884 | ($1.8 million) | $704,594 | $417,007 |
