BERKELEY — The city is poised to spend more than $340 million on operations in each of the next two years under a biennial budget proposal presented to the City Council this week by the city’s Office of Budget and Fiscal Management.

About half of the total proposed operating budget, of $342 million in fiscal 2018 and $349.1 million in fiscal 2019, would be made up of the general fund budget: $172 million the first year and $174.6 million the second year. The rest would consist of various restricted special funds, including Zero Waste, Permit Center, Sewer, Public Health, and Mental Health.

Both years’ proposed general fund budgets reflect structural deficits — $5 million in fiscal 2018 and $5.3 million in fiscal 2019, projected to grow annually to $10.9 million in fiscal 2022. They would be made up by a combination of short-term and recurring revenues and cuts, to balance income and spending. The structural deficits, according to the Budget and Fiscal Management office, result from increased expenditures in the current, 2017 fiscal year, including cost-of-living adjustments; a new $500,000 annual mandate for public campaign financing under Measure X1, approved by voters in November; a fourth Fire Department ambulance; a three-year Homeless Outreach and Treatment Team Program; and redesign of the city website.

Also contributing to the structural deficits are increased employee health care rates, and higher employer contribution rates imposed by the California Public Employee Retirement System (CalPERS) board.

Balancing the budget for the next two years to overcome the structural deficits would be accomplished by increasing by $2 million the annual property tax baseline; transferring $700,000 a year from the Parking Meter Fund; and expenditure reductions of $1.9 million in fiscal 2018 and $2.2 million in fiscal 2019 from temporary suspension of some annual General Fund transfers to special funds.

The bulk of the General Fund budget — more than $130 million, or about three quarters — would go for personnel costs.

The City Council will host several more discussions of the budget until its anticipated adoption on June 27.

During its regular meeting later on May 2, the council approved a use permit for a mixed-use development with 50 apartments on three parcels at Adeline and Russell streets. Four of the apartments would be for low-income and another four for very-low income renters, including two for Section 8 and the other two for Shelter Plus Care tenants. Another unit would be moderate-income. There would be just over 4,000 square feet of commercial space. The project involves demolition of a single-family home and a mixed-use, residential-and-commercial buildings.