With an expected $69.1 million in revenue next year, Dublin could spend $71 million.
Dublin City Council last week got a first look at the proposed 2013 city budget that outlines expected revenue and expenditures.
According to Angel Mumma, Dublin's director of finance, planning for the 2013 budget began in the late summer with department directors putting requests together.
"We give them parameters of revenue," she said, noting that most were held to an increase of about three percent.
Along with department requests, city staff also use council goals, the Capital Improvement Plan and the need to maintain city service levels to create the annual budget.
In planning the budget, Mumma said the finance department works to maintain an end-of-year general fund balance of at least 50 percent of general fund expenditures.
The general fund balance has exceeded the 50 percent mark for the past few years with 59.8 percent of general fund expenditures in 2008, 64.9 percent in 2009, 75.9 percent in 2010 and 82.8 percent in 2011.
"As a result of an increase in income tax revenues in 2012, the city's unexpended general fund balance is projected to be $48.3 million at year-end 2012, which as a percentage of projected expenditures and operating transfers, is approximately 83.5 percent," information from city manager Marsha Grigsby to council members stated.
Although the large amount of carryover the city has is sometimes criticized, Mumma said, it's important to help the city weather situations such as the economic downturn that occurred in 2009.
"It is important that we maintain that gap for a number of reasons," she said, adding that the economy hasn't fully recovered yet.
For 2013, the city is expecting to take in $69.1 million in revenues, an increase from the $65.87 million projected this year.
Revenue projections are conservative, Mumma said, because the city relies on income tax revenue for the lion's share of its revenue. This year, for example, the city projected an increase in income tax revenue of three percent, but through October has seen a five percent increase, she said.
Next year, 81 percent of the $69.1 million in projected revenue will come from income tax revenues, Mumma said.
"About 30 percent of income tax revenue comes from our top 10 employers," she said.
Next year Dublin expects $74.8 million in income tax revenue and 75 percent of that will go into the general fund. The remaining 25 percent of income tax revenues will go to funding the Capital Improvement Plan that guides maintenance and infrastructure development in the city.
The $71 million in proposed expenditures for next year is up from a projected $68.1 million this year.
Mumma said proposed expenditures for next year are up 4.28 percent over this year. The extra expenses are mostly from funding related to the Presidents Cup and an increase in budgeted economic development incentives, Mumma said.
"If you take those out we're 3 percent up over 2012," she said.
Salaries make up 54 percent of the proposed expenditures for 2013, Mumma said.
The city is budgeting for 368 full-time positions and 232 part-time positions next year, with a net loss of two part-time positions when compared to 2012.