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Projected Alameda Budget Shortfall Grows

The projected Alameda general fund budget shortfall for the 2012 to 2013 fiscal year has grown from $4.4 million to $5.1 million. Part of the problem is rising pension costs for city employees in the public safety and miscellaneous categories.

A presentation prepared by city staff for a May 29th City Council budget session is now projecting general fund deficits of $5.1 million to $8.7 million annually from 2013 to 2017. Through that same time period, expenses are projected to rise at a faster rate than revenues.

The city is projecting a general fund balance of just $11 million, or 15% of the total budget, for the end of fiscal year 2012 to 2013, unless corrective actions are taken. The projected deficits would run down this balance to a negative in fiscal year 2014 to 2015.

Property taxes are a significant contributor of city revenue, but city data shows that the median sales price in Alameda has been in steady decline since 2005.

The city is also projecting significant growth in its Calpers pension contribution rates for public safety and miscellaneous employees, as measured from the 2009 to 2010 fiscal year through 2016 to 2017.

In response, the city is proposing a hodge-podge of reduction efforts, including reducing the overtime budget for the fire department, eliminating un-filled positions, cutting the parks and recreation budget, and shuffling expenditures around.

The total proposed reductions for fiscal year 2012 to 2013 amount to only $2.8 million, however.

The full May 29th budget presentation is included below.

Alameda Budget Session

5 comments to Projected Alameda Budget Shortfall Grows

  • Barbara

    Maybe it is time to follow San Jose and put pension reform on the ballot. No matter what we will do, there will be not enough monies to keep up with supporting those who do not work anymore. That is our reality.
    Our politicians are too week to govern, because it is much easier to promise freebies and blame economy.

  • Barb Thomas

    Since 42% of the general fund revenue souce comes from Sales Tax, what happens if there is a major negative impact due to 1/2 cent increase due to the passage of Measure C? On top of the additional 1 cent additional in November?

    People who live day to day will be impacted more than others and may chose to respond by using the Internet for purchases, shopping elsewhere, or just buying less overall. Has that been factored into the predictions?

  • Barbara

    I will look for savings wherever I can.

  • jack

    very simple solution , give a piece of white paper to anyone employed by the City one sentence only , JUSTIFY YOUR SALARY.
    close to 1/2 million dollar for a police Officer is obscene regardless of his rank,same goes for the fire dept , it is time that we Citizen regain control of our future , it is very clear this City Manager is shining by His incompetence .
    Oh let’s raise taxes , how about pay cut …..

  • Barbara