Fairfax City faces a $5.2 million deficit this budget season. 

City Manager Bob Sisson presented economic forecasts and budget calculations at a council meeting Nov. 27, kicking off Fairfax City's FY2014 budget season.

Sisson and his staff have to contend with increases in capital improvement project funding and the city's school tuition bill in balancing the Fiscal Year 2014 budget. Council members will work with staff until they adopt a budget in May.

Here's a breakdown of expected city revenues and expenses for 2014:

Revenues

• The city expects $121,432,548 in General Fund revenues for FY 2014. These revenues are made up of real estate, personal property and other local taxes.
• 47.8 percent of revenues comes from real estate taxes. About 60 percent of Fairfax County's revenues comes from real estate taxes. Sisson said the comparison of city and county revenues shows that Fairfax City has "more diversified revenue sources in the city."
• The council voted to raise the 2013 real estate tax by 7 cents.
• Staff expects assessed residential and non-residential property values to increase 2.9 percent. This gives city staff an additional $2,064,621 to use in balancing the FY2014 budget.
• But the city took $2,184,803 in non-recurring income out of last year's budget to fund operations. This gives the city $833,195 in additional funds to work with in balancing the FY2014 budget (additional smaller increases included).

Expenses

• The city expects $126,638,577 in General Fund expenses for FY2014.
• Fairfax City's service contract with Fairfax County Public Schools is the largest non-discretionary expense item. This is expected to increase by $894,438 over last year's tuition bill. Sisson's estimate is conservative. FCPS has a history of bumping up Fairfax City's bill.
• The city may also have to contend with an additional $3,126,386 in capital improvement projects over 2013.
• Additional city employee leave, compensation, performance-based increases and COLA means an additional $1,136,926 in expenses.
• City staff expects expenses to increase by $6,039,224 in FY2014.

Compare the expense and revenue estimates and the city faces a $5.2 million deficit.

Patch will follow the budget process throughout the winter months and into April.

Click here to watch city staff go over their FY2014 budget expectations.