Mayor Carty Finkbeiner has promised a new 2009 general fund budget by Monday that will balance the city's projected $27.7 million deficit with more layoffs and "revenue enhancements," officials said yesterday.

Councilman George Sarantou said the new spending plan is almost sure to include some painful cutbacks for the city.

"The mayor, like all of us, agrees that we cannot sugarcoat this," Mr. Sarantou said. "The longer we delay in cutbacks in personnel, the bigger the hole gets. We need to take some action now."

Toledo's financial administrators told council this week they'd have little choice but to consider significant layoffs, including police officers and refuse collectors.

"The money just isn't there with the income tax," said City Finance Director John Sherburne. "We are going to have to make some structural changes."

Mayor Finkbeiner on March 13 proposed making 75 police layoffs to help balance the 2009 budget. For months, his administration has advocated switching garbage collection to automated trucks with a single driver rather than a three-person crew.

Mr. Sherburne said the city's shortfall is driven by decreasing income tax receipts, which this year are expected to net just $145 million - the same amount collected in 1997. That figure is down from the $169 million anticipated when the budget was passed in January.

Mr. Sarantou, chairman of council's finance committee, said the Finkbeiner administration is seeking concessions from the Toledo Police Patrolman's Association, the police command officers' union, and Toledo Firefighters Local 92. The city is in negotiations with all three.

There is also the possibility of increasing the city's refuse fee, which would require council approval.

Toledo City Council has given itself until April 14 to mull over spending $9.67 million to buy 200,000 trash carts - a purchase the Finkbeiner administration wants so the city may save millions by altering refuse collection in the city.

Councilman Betty Shultz said she would not support the expenditure because the city is struggling to balance its budget.

"I have a major problem spending $9 million for trash cans when we have a $27 million hole in our budget," Mrs. Shultz said during a council agenda review meeting Tuesday.

But administration officials say switching to automated refuse pickup will save more than

$3 million in labor costs each year by reducing from three to one the number of people assigned to each truck.

Contact Ignazio Messina at:

imessina@theblade.com

or 419-724-6171.

First Published March 27, 2009, 9:37 a.m.