As Akron starts to finalize its operating budget for 2012,  the city projects income taxes are expected to be up, while property taxes drop.

Finance Director Diane Miller-Dawson says the city will be struggling with local government revenues this fiscal year.

"We're projecting the cut to be between 4 to $4.5 million."

"Our employment is the lowest its been since the 1960's and we're down to 1740 employees."

State law says the budget must be in place by the end of the year, City Council is expected to vote on it March 19.

  City Finance Director Diane Miller-Dawson by Akron NewsNow

Miller-Dawson says the newly-created tax amnesty program is becoming one of the main revenue-generating programs in the city.

"We're hoping that will help us grow income tax revenues that will offset some of the cuts we'll be receiving from the State."

"We've been working really hard to try and control expenses and the other thing we've been looking into is how to create revenue," she says.

The amnesty program is aimed at collecting unpaid income taxes and would allow residents and local businesses to pay the taxes and interest without penalty.

City departments were asked to submit budget requests by the administration in an effort to control expenses.

Another aspect of the operating budget concerning the city is health care . All city workers with the exception of Civil Service Personnel Association members will be paying into their premiums

"Our medical bills continue to climb, even though our employees are paying  a share of their medical premiums, it isn't enough to counteract the inflation in our health-care costs," she says.

Miller- Dawson  says the administration is pleased that city workers have been doing their part to balance the budget.

"We continue to try and hold our own and we recognize our employment levels have been the lowest they've been since the 60's and everyday, our employees go out and work very very hard, so they deserve a big 'thanks' for what they do for the citizens of Akron."

The proposed city operating budget for this year is $502 million.