Posted: July 1, 2009

The city may need to eliminate as many as 12 positions next year to bridge an anticipated $1.2 million budget gap brought on by weak economic conditions.

City Administrator James Archambo said the numbers are still up in the air, but the city will cut as many jobs "as necessary to make the budget balanced."

Reduced state aid and a drop in recycling revenue - both caused by ongoing economic turbulence - are two areas expected to hurt the city's bottom line.

Archambo said the difference will mostly be made up through job reductions, but added that all areas of the budget will be reviewed for potential savings. He also hinted that city fees could increase to bring in extra revenue.

Although the numbers presented to aldermen Tuesday were preliminary and subject to change, the $53 million budget calls for a 3.3 percent increase in the city's property tax levy - from $35.53 million to $36.7 million.

Residents would see a property tax rate increase of 3.3 percent under the budget, raising last year's rate of $6.69 per $1,000 of assessed property value to $6.91 per $1,000 of assessed value.