Mayor Denis Law proposed a $445 million city budget Monday night, a big number but for the first time it’s a two-year or biennial budget rather than for just one year.

Nearly half of that money – about $198 million – will go toward providing basic public services, such as police and fire, parks and street repair, in 2011 and 2012.

The city’s budget in 2010 is $212.4 million.

Missing from the budget proposal are large staff reductions that in the last two years were necessary to help balance the city’s budget wracked by the recession and declining tax revenues.

In 2009 and 2010, the city eliminated 83 positions or 12 percent of its workforce. This year, the city will eliminate the equivalent of 4 1/2 city positions.

Those staff reductions and other efforts to save money, including reducing overtime, will help the city fill a roughly $2 million deficit in 2011. That deficit is mostly due to the recession, which has cut deeply into key city revenues, including the sales tax, which has seen double-digit declines.

In the next budget, the city would maintain current service levels and won’t restore service cuts made to balance the 2010 budget.

The number of people employed by the city next year will depend on whether Fairwood voters decide on Nov. 2 to annex to Renton. Without Fairwood, the city would have 682 employees (measured as full-time equivalents). If Fairwood annexes, the city would add 82 employees to its roster.

Law also used his speech to explain the new realities facing every government because of the recession. “Things are not going to be the way the used to be,” he said.

However, Renton, he said, “remains in solid financial shape despite this recession. We’re focusing on improving efficiency, while operating within our means.”

The city’s primary sources of revenue are property tax (the largest), followed by the sales tax, which is sensitive to changes in the economy. Sluggish construction also limits the real estate excise tax.

Law presented the budget proposal to the City Council at its Committee of the Whole meeting Monday. The council now will scrutinize the budget proposal, including at a budget workshop at Merrill Gardens starting at 1 p.m. Wednesday. A public hearing will be held on Nov. 15.

The City Council will consider a budget adjustment midway through the two years.

King Parker, chairman of the council’s Finance Committee, said the council will perhaps make some minor adjustments to Law’s proposal. He said the city “will give better services” back to its residents.

The city’s primary responsibility is public safety, Law said in his speech. But he said the police and fire departments also will reduce expenses in overtime and in other areas.

The two-year budget proposal includes the first of $2 million yearly payments to finance development and construction of two libraries in the city, a commitment the City Council made when Renton annexed to the King County Library System.

Those yearly payments will last about 10 years, for a total of about $20 million.

The budget also will include some fee increases; those will be presented separately to the City Council. The council already has approved utility rate increases.