The Fiscal Year (FY) 2011-12 budget originally was scheduled to go into effect July 1, 2011, but approval was postponed to Aug. 8 by the City Council at its meeting on June 27th.  The Council then voted at a special Council meeting on July 5 to reconsider the FY 2011-12 budget resolution at its meeting of July 11.  State law requires that the tax assessments for the fiscal year must be set by the Council after adoption of the final budget and no later than 45 calendar days after receiving certified taxable values from the state.  Certified taxable values are expected to be delivered by the state on Aug. 2, which would mean the assessments have to be set no later than Sept. 16, and the budget must be adopted before that time.

Proposed expenditures for all funds in FY 2011-12 total $239,123,424, up 6.8% from the FY 2010-11 budget of $222,843,594.  Proposed revenues are expected to be $237,039,116, up 13.2% from the FY 2010-11 budget of $209,395,404.  The difference between expenditures and revenues will be made up from carry-overs from previous years' budgets.  A total of 3.5 positions are expected to be added citywide.

Proposed General Fund expenditures for FY 2011-12 total $29,727,958, up 4.5% from the FY 2010-11 budgeted expenditures of $28,434,459.  Proposed revenues for the FY 2011-12 General Fund are $31,042,234, up 2.5% from FY 2010-11 budgeted revenues of $30,290,609.  The General Fund mill levy has been capped for many years by City ordinance.

A public hearing was advertised in The Billings Times on May 26 and June 2, and the public hearing was held on June 13, 2011.  A simple majority of the Council votes is needed for approval.

The Council may:

• Approve the resolution; or
• Not approve the resolution;
• Delay adoption of the resolution to a date certain.

Staff recommends that City Council approve the resolution approving and adopting the budget for the City of Billings for fiscal year 2011-2012.