In FY 2011, the City funded $4.8 million in Challenge Grants for 49 positions and 18 programs in various departments throughout the City, thereby allowing us to continue services for our residents.  The expectation was established that funds would be found elsewhere through revenues or expenditure cuts for the following year.  Long-term, the City planned to use a reduced Challenge Grant for fiscal years 2012 and 2013 to help fund positions or programs identified as necessary to continue services.  Due to cost reductions in various areas, process improvements, and revenue enhancements, the City was able to balance the FY2012 budget without utilizing the Challenge Grant process.