Council approves budget

CITY HALL — The City Council on Tuesday voted 4 to 1 to adopt a balanced $774-million budget starting July 1 that included a series of program cuts, position freezes and fee hikes to bridge an anticipated $7.2-million general-fund shortfall for next year.

The state budget crisis, growing unemployment and sliding revenues contributed to the projected deficit, which is expected to grow to $11.5 million by fiscal year 2013-14. Each department was asked to cap costs, refrain from creating new positions and cut spending by 5%.

City officials, facing the first forecasted decline in sales revenue in nine years, offered a slimmed-down general-fund budget of $147 million. At roughly 19% of the total budget, the general fund pays for city services like libraries and police. Of that money, 80% is earmarked for employee salaries and benefits.

“In light of the overall financial situation in the state and nation, I think the budget that we adopted is a good one,” Councilman Dave Golonski said. “I think the scope of our challenges on the economic front probably pale in comparison to the position that other cities are in right now. But I don’t think it’s the end of the story.”

Councilman David Gordon cast the lone dissenting vote.

Burbank could be out $3.4 million under a proposal that calls on cities to loan the state 8% of their property tax revenues from fiscal year 2008-09.

The funds must be paid back with interest within three years, and the city plans to work closely with the League of California Cities, which called the governor’s borrowing plan reckless, contending that cities could not afford to bail out the state when they are already adopting deep cuts to balance their budgets.

“If there is a saving grace, it’s a loan that must be paid back,” Golonski said.

Public safety budgets, which make up about 50% of the general fund, came in at roughly $42 million for the Police Department and $29 million for the Fire Department. While a requisite 5% cut to the police budget would have shaved $1.85 million, the department came up short despite freezing two vacant police officer positions, one senior animal control officer and one forensic specialist.

“We’d rather not freeze safety positions, but I think the level that we are doing it at is something we have to keep our eye on,” Golonski said.