With the regional economy continuing to struggle, the city is facing a budget shortfall for 2011 because of lower-than expected tax revenue, the Finance Department reported Monday.
In its quarterly budget report for the City Council, the Finance Department said the lingering recession has meant limited job growth, a flat housing market and nervous consumers in the second quarter, from April to June.
Neither construction activity nor retail sales, which generate the bulk of Bellevue's tax revenue, have picked up as they were expected to. As a result, $3.2 million less is expected to come in this year than was budgeted for the city's general fund.
In response, the city has acted to balance the 2011 budget by holding vacant positions open, deferring expenditures and cutting costs in operations. Additional cost-cutting measures to balance the books in 2012, the second year of the 2011-12 biennial budget, will be discussed at a future council meeting.
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Feedback: Toni Rezab, Budget Manager, 425-452-7863 or firstname.lastname@example.org
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