Powell City Council on Nov. 15 reviewed a proposed 2012 budget that would reduce general fund expenses by $55,000 compared to 2011.

Powell City Council on Nov. 15 reviewed a proposed 2012 budget that would reduce general fund expenses by $55,000 compared to 2011.

Expenses for 2012 are estimated at $6,235,932, compared to $6,272,048 for 2011. The budget will be discussed again at council’s Dec. 6 meeting.

About 71 percent of the general fund operating budget is for personnel costs, city manager Steve Lutz said. The remainder is for capital expenses including purchase of new equipment, such as computer upgrades, vehicles, contract services and membership fees, he said.

Revenues for the 2012 general fund are expected to increase by about $100,000 over those of 2011, respectively $5,854,395 and $5,778,418.

Documents show the city gets about 68 percent of its general fund revenue from the income tax; 13 percent from local taxes such as property taxes, 13 percent from other sources such as the estate tax; 4 percent from development-related fees; and 2 percent from charges for services.

The city had a general fund carryover balance of $5,282,276 on Dec. 31, 2010, which is expected to decrease by about $500,000 from 2011 expenses, Lutz said. By Dec. 31, 2012, the carryover balance is expected to increase by about $250,000. The numbers are different than those presented in October to the finance committee, which showed about a $100,000 gain in the general fund carryover balance, with decreases occurring in 2012.

Finance director Debra Miller said the discrepancy has to do with the city paying expenses for a project for which a federal grant will reimburse the city.

Lutz cited these highlights of the 2012 budget:

• Making a $7,500 contribution to a rainy-day fund of about 17.4 percent of the general fund budget.

• Earmarking $75,000 in contingency funds for unexpected expenses.

• Decreasing a full-time building department position to part-time.

• Decreasing the building department’s contract services for plan review to $24,000 from 2011’s $47,100.

• Eliminating membership to the Delaware County Regional Planning Commission, saving about $12,000.

• Purchasing $22,500 worth of software for the finance department.

• Increasing computer maintenance funding from 2011’s $27,000 to $45,000.

• Increasing tree trimming and removal from 2011’s $10,000 to $20,000.

• Replacing a public service pickup truck for $31,000.

• Including two capital improvement projects — $50,000 for culvert replacement and $5,000 for traffic light interconnectivity.