Recommended city budget provides limited and targeted growth in 2013

On Sept. 11, Boulder City Council will begin considering a proposed 2013 budget that supports master plans accepted by council in 2012, restores partial funding for police and firefighter training, and continues funding for existing community programs and services.

City officials said that while the local economy is improving slowly, the city’s General Fund revenues will see only modest increases in 2013. As a result, City Manager Jane Brautigam recommends continuing the conservative approach initiated during the economic downturn; limited new funding will be allocated to programs supporting the highest community priorities next year, including economic vitality initiatives and significant investments in Boulder’s public facilities and infrastructure made possible by voters in November 2011.

The $256 million Recommended Budget includes $33 million in capital improvement plan spending – an increase of $10 million over 2012 levels.

“Boulder is in a stable financial position, and the conservative approach taken over the past few years has helped the city to become more efficient and effective with public dollars,” said Brautigam. “Our focus on cost recovery, restructuring city functions and not using one-time revenues to pay for on-going expenses has enabled Boulder to reduce the projected $135 million annual structural gap identified by the Blue Ribbon Commission in 2008 to $75 million annually by 2030.

“Boulder’s guiding principles of separating one-time revenues from ongoing expenditures also emphasizes the need to accurately project future one-time costs in order to carefully save over several years in preparation for those expenditures to avoid impacting Boulder’s base budget,” added Brautigam. “Because the city purposely saved for the future, we are prepared to pay as we go for planned one-time expenditures without negative impacts to the 2013 base budget.”

The 2012 Boulder City Council is keeping an eye on revenue and expenses.

The recommended base budget reflects a 2 percent increase in base budget expenditures compared to the 2012 approved budget. Boulder saved an additional $16 million outside of that base budget to pay for one-time expenses that will be incurred next year. Most of that amount consists of funding for important transportation projects leveraged by the city using state and federal sources; a once every 11- to 12-year pay-period liability associated with Boulder’s biweekly pay system, and expenditures for Boulder’s Energy Future that are now included in the city’s budget document to reflect revenues approved by the voters in November 2011.

In addition to the continued long-term emphasis to stabilize revenues and expenditures, the Recommended Budget addresses community and council priorities with a major emphasis in the following areas:

• Restore non-personnel funding for police and firefighter training that was reduced during the economic downturn;
• Provide additional resources for Boulder’s Energy Future, the Civic Area Master Plan and adding a resource officer for homelessness initiatives;
• Carry out steps needed to implement master plans and department assessments, some of which began in the 2012 budget;
• Continue and strengthen the commitment to economic sustainability; and
• Boost the capacity of the city to renew its infrastructure and invest in technology.

The Recommended Budget provides for targeted growth in priority programs, adding one standard full-time equivalent (FTE) employee and 5.5 fixed-term FTEs in the General Fund to address these community initiatives.

Council is scheduled to begin studying the city manager’s 2013 recommended budget at its Tuesday, Sept. 11, study session. The study session will be aired live on Channel 8.

City Manager’s 2013 Recommended Budget is available online.