The city of Tracy’s $158.5 million budget for fiscal year 2012-13 will be scrutinized and could be approved at the Tuesday, June 5, City Council meeting.

Up for discussion are a $21 million capital budget, which can be used for one-time expenses, such as building new city facilities; a $23 million debt service budget; and a $112 million operating budget.

The operating budget includes services such as waste and water, which are paid for by fees that can’t be transferred for other uses. It also encompasses the $49.9 million general fund, a city account fed by property taxes, sales taxes and various fees.

The city’s staff reports that about 70 percent of the general fund covers city employee costs, including fire and police protection services.

The Tracy Finance Department estimates the general fund will run a $2.2 million deficit for the fiscal year beginning July 1. That’s in spite of $5.8 million in anticipated revenue from Measure E, a half-cent sales tax increase approved in 2010 by voters inside city limits.

A budget must be passed before the start of the 2012-13 fiscal year. Another council meeting is scheduled for June 19, in case the council decides to delay approval Tuesday.

The public is invited to offer criticism of the budget during the 7 p.m. meeting at 333 Civic Center Plaza Drive. A budget workshop before the regular meeting is scheduled for 5:45 p.m.