Recently (Summer, 2012) the City Administration stated that the FY2012 deficit that they anticipated in January, 2012, became a reality. In addition to the information included in the report below, which is still applicable, everyone should also know the following:
In January, the anticipated deficit was reported to be $4.4M and resulting from an anticipated $2.5M shortfall in revenues and an anticipated $1.9M in over-expenditures. At that time the City Administration said they would cut costs to fill the hole on the expenditure side of the budget.
In March, 2012, around the time when the City Council was being asked to approved the new positions created by the City Administration, the City Council was told that the expenditure side of the deficit was resolved through department-level cost cutting and other actions identified in a March 5, 2012, memo from the Finance Director (click link to read).