City of Berkeley Budget Frequently Asked Questions

Have questions about the budget? You're not alone. Here are a couple of frequently asked questions about the budget.

What is a Budget?

A city’s budget is one of the most concrete expressions of public policy there is. Just as in your personal finances, whether you are saving money for a large purchase or paying monthly bills, how you spend your money reflects your goals. Likewise, the City Council makes decisions about the City’s budget based on what it hopes to accomplish during a given fiscal year.  The budget is tied to the City’s Work Plan and the specific projects approved by Council.

While most individuals track their finances by the calendar year, the City manages its finances by fiscal year (July 1 – June 30). To help in its planning efforts, the City adopts a balanced two-year, or biennial, budget.

On June 23, 2009, the City adopted its two-year budget for Fiscal Year 2010 and Fiscal Year 2011, which covers July 1, 2009 – June 30, 2011.

Where does the City get its money?

The City’s entire adopted budget for the current fiscal year (FY 2010) is about $322 million, of which $148 million (46 percent) is the General Fund, the City’s primary discretionary funding source. The General Fund gets the majority of its money from property taxes and property-based revenues; economically sensitive revenues such as sales tax, business license tax, transient occupancy tax, etc.; interest and fees such as ambulance fees; and parking and traffic fines.

The balance of the City budget is comprised of other funding sources such as grants, special tax revenue (like parks, libraries and paramedic services), and fees for specific services (marina berth fees, garbage and sewer fees, building permits, etc.). Revenue generated from these sources must be spent on very specific services.  For example, the City cannot use revenue collected from sewer fees to fund police officers.

Where does most of the General Fund go?

For the current fiscal year (FY 2010), half of Berkeley’s discretionary General Fund budget is spent on police and fire protection services. The balance goes to capital projects such as streets and sidewalks, community agencies, debt service and general government services such as the City Clerk, customer service personnel, and Human Resources.

What say does the public have about the budget?

The public is a critical part of the City’s budget and is encouraged to attend City Council meetings when the budget is discussed.

The public is invited to write, call, email and visit their representatives on the City Council anytime during the fiscal year to discuss the City Budget. The public may download a copy of the budget from the budget document page. 

You can contact Tracy Vesely, Budget Manager, in the City Manager’s Office, with your budget-related questions.  Her phone number is (510) 981-7024 and her email is tvesely@CityofBerkeley.info.