2011 Birmingham budget

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The Fiscal Year 2011 Birmingham budget includes the general fund operating budget for the City of Birmingham for the fiscal year July 1, 2010 - June 30, 2011. The proposal was submitted by Mayor William Bell to the Birmingham City Council by May 20, 2010. After weeks of deliberations, a revised budget was returned to the Mayor for consideration, and his response was debated on June 29 at a special meeting of the Council's Budget Committee before being considered by the full Council on July 6. The city continued to operate under the 2010 Birmingham budget until the new one was passed.

The city began working in April with the UAB School of Business to arrive at reliable projections for annual revenues. It was assumed that additional cuts to operating expenses and new sources of revenue would be required to insure a balanced budget. Among the cuts discussed were funds for non-profit organizations, staff buyouts, and some reduced services. Possible revenue initiatives included fees for garbage collection and police reports.

After receiving requests for funding from city departments, Bell reported that projected costs for 2011 totaled $400 million while projected revenues would be only $350 million, requiring significant cuts.

On May 17 Bell addressed all city employees at Boutwell Auditorium, informing them of an across-the-board 10% pay cut which will be submitted as part of the 2011 budget. Those cuts were an effort to prevent layoffs, but early retirement and possibly furloughs could become necessary. On the other hand, the cuts could be restored if revenues improved over the course of the budget year. Bell later asked the Library and Department of Parks & Recreation for recommendations of specific branches that could be closed, perhaps temporarily, to help balance the budget.

The City Council, meeting in committee to discuss the budget, focused on efforts to prevent pay cuts, restore funding to some outside agencies, and avoid the closure of library branches and recreation centers. Among their suggestions to preserve a balanced budget were to take more funds from the city's savings (to be repaid once revenue collections improved) and also to be more optimistic in making projections for 2011 revenues. Additional revenues would be generated from increasing the tipping fees at city owned landfills and additional savings would be realized by scheduling seven unpaid holidays for city employees (rather than pay cuts) and reducing hours at libraries and recreation centers (rather than closing them).

Meanwhile, an error was discovered in the implementation of the city's electronic timecard system, implemented by Tech Providers under Larry Langford's administration. The system converted Birmingham Fire & Rescue Service employees salaries into hourly rates in a way that amounted to a 20–25% increase in compensation without budgetary approval or the consent of the Jefferson County Personnel Board. The error cost the city as much as $12 million per year, and the prospect of correcting the error was viewed by firefighters and their families as a severe blow on top of the proposed 10% pay cut.

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