Tacoma City Manager Eric Anderson announced Tuesday that adjustments to the city’s 2009-2010 biennial general fund budget have closed a $12 million shortfall.

“I am for the first time confident in telling you we will be balanced at the end of 2010,” said Anderson during Tacoma City Council’s weekly study session.

Budget adjustments have been a common action by Anderson since the city adopted its $443 million biennial budget in December 2008. He has cut the budget by nearly $43 million by leaving some open positions vacant and dipping into reserves.

Anderson and finance director Bob Biles reported fourth-quarter revenues for 2009 were $2.5 million less than forecasted. Most notably, property taxes were down by $752,000 and sales taxes were down by $941,000. During this latest round of adjustments, cuts were made to areas related to public safety and emergency services. $1.5 million was saved through the police department’s vehicle replacement program and paying for the salaries of five police positions for the next two years through a federal grant. Similarly, $8.6 million was saved by trimming contributions to police and fire pension accounts.