The Truckee Town Council has adopted the 2012-13 budget that results in a deficit of $965,000.

Revenues for the general fund are set at $17.8 million, while budgeted expenditures are approximately $18.8 million.

Officials say the deficit is due to the one-time expenditure of funds for construction of the animal shelter. Town Council approved the budget for the project despite the construction bids coming in overbudget by approximately $2 million.

The Humane Society has committed to contributing half of all project costs, including half of the budget overage of approximately $1 million.

The new animal shelter is one of the 70 projects that is included in the five-year capital improvement program budget. The total budget of the 70 projects is $92.4 million over five years.

For the third year in a row, the town is budgeting a decrease in property tax revenue (down 4 percent, or $330,000).

— Lake Tahoe News staff report