Adopted Budget, Fiscal Year 2011-12 for complete downloads*  (9.77 MB) (484 Pages)

City Council Approves FY 2011-12 Budget

Like residents, businesses, and public agencies of all types and sizes, the City has been challenged by the lingering impacts of the “Great Recession” to maintain structurally balanced budgets (ongoing revenues that are greater than or equal to ongoing service costs). For many years, the City has worked diligently without relying on “one-time fixes”.  In June, this sound approach was continued as the City Council approved a structurally balanced Fiscal Year (FY) 2011-12 budget (total General Operating Fund of $93.8 million).

The balanced budget was made possible by continuing to find opportunities to operate more efficiently and by new revenue from leasing City property.  These savings covered more than 80% of the anticipated budget gap.  A final component of balancing the budget was to obtain agreements with employee organizations to reduce employee compensation costs. This was necessary because while the City is starting to see modest increases in revenues and is holding salaries at current levels, the costs to continue current employee benefits outstrip revenue growth.  The new employee organization agreements result in $500,000 in savings, about half of which results from structural changes to employee benefits.  This was essential to helping close the $2.6 million deficit, and will lay the groundwork for improving the City’s financial situation in FY 2011-12 and beyond.

Deep service cuts are not occurring because of Mountain View’s history of bringing together all parties, including the City Council, management, and employees, to responsibly address financial issues.   While the City’s budget is balanced, Mountain View has been negatively impacted by the new State budget.  The budget signed by the Governor will divert over $220,000 in general purpose Vehicle License Fund (VLF) revenues from the City.  In addition, Mountain View may lose about $25,000 in State funds for libraries.  The City also faces negative impacts associated with legislation that forces redevelopment agencies, such as Mountain View’s Downtown Revitalization District to pay a portion of the tax increment or risk being abolished.  The District stands to lose about $2 million of anticipated $5 million in revenue for FY 2011-12. Some or all of these provisions in the State budget face legal challenges.  While this diversion of local funds to pay for State services will not require any changes to the City’s Adopted Budget for FY 2011-12, any structural impacts to the City’s budget must be addressed in the FY 2012-13 budget.

City Council

• Jac Siegel, Mayor
• R. Michael Kasperzak, Jr., Vice Mayor
• Margaret Abe-Koga
• Ronit Bryant
• John Inks
• Laura Macias
• Tom Means

• Melissa Stevenson Dile, Interim City Manager
• Jannie Quinn, City Attorney
• Lorrie Brewer, City Clerk
• Max Bosel, Assistant City Manager/HR Director (Acting)
• Patty J. Kong, Finance and Administrative Services Director  
• Randal Tsuda, Community Development Director
• Michael A. Fuller, Public Works Director
• David A. Muela, Community Services Director
• Rosanne M. Macek, Library Services Director
• Bradley C. Wardle, Fire Chief
• Scott S. G. Vermeer, Police Chief/Assistant City Manager of Public Safety

Submitted by

• Melissa Stevenson Dile, Interim City Manager

Prepared by

• Patty J. Kong, Finance and Administrative Services Director
• Suzanne Niederhofer, Assistant Finance and Administrative Services Director
• Helen Ansted, Principal Financial Analyst
• Elliot Young, Administrative Analyst
• Rafaela Oceguera, Administrative Analyst