At the middle of Bonney Lake’s budget biennium, revenues are higher than expected and expenditures are lower than estimated for 2011, but city officials expect to dip into the city’s fund balance to keep things in balance next year.

According to a budget presentation from City Administrator Don Morrison, city staff was able to make it through this year without using any of $400,000 of fund balance allotted for the year, but they are asking instead to use that money in 2012.

“Department heads have continued to hold the line,” Morrison told the city council, adding that for 2012, “We’ve squeezed the operating budgets a little bit more.”

The administration is asking for the use of $393,175 from the fund balance to keep the figures in line for next year, but Morrison said they are asking for the money “with the goal of not using any of it.”

Morrison added that 2012 revenue figures were conservatively estimated and that if revenue comes in slightly higher than predicted last year, which they expect, then the money from the fund balance will not be necessary.

Modifications for the council’s mid-biennium budget amendment include slightly reduced department budgets, trimmed supply and service budgets, a new $15,000 line item account for the city’s new nuisance abatement ordinance and a new $20,000 budget line expenditure to offset an alarm contract adopted this year, though that money is expected to be offset by corresponding revenues.

Other factors in the mid-biennium amendment include a 2.8 percent cost of living increase for union employees, as negotiated, and a 1.5 percent increase for non-represented employees.

Salary adjustments for the police guild are presently under negotiation and unavailable at this time.

“It’s basically a carry-over budget for the most part,” Morrison said.

Outside of the general fund, the city’s utilities all remain in good shape, finishing 2011 in the black.

“Next year’s budget doesn’t include any rate increases,” he said.

The city will not carry over any 2011 capital improvement projects into the new year but several new projects that were not part of the original budget have been improved, including a dike expansion and tennis court/sport court restoration and expansion at Allan Yorke Park, tenant improvements at the Justice Center to accommodate staff relocation, a fire hydrant to serve Swiss Park and improvements to the intersection at state Route 410 and Main Street, as part of the Franciscan Medical Pavilion traffic mitigation agreement.

Deputy Mayor Dan Swatman, who also acts as chairmen of the council’s finance committee, said he likes that the administration is controlling costs as much as they can, but would prefer they didn’t dig quite so deep into the fund balance, but said he likes current estimate of $400,000 over the two years better than the original $600,000 budgeted.

“It’s better than it was, by far,” Swatman said, adding that staff did an “excellent job” controlling costs this year.

Swatman also said if expenditures continue to outpace revenues, the city must consider reducing services instead of continuing to dip into the fund balance.

“We have to do less with less,” he said. “There’s less.”

Swatman said he expects the council to pass the mid-biennium amendment when it takes up the issue Dec. 13.