Another $1.5 million must be cut to balance a "bare-bones budget" that has already taken $1 million in cuts this fiscal year, said City Administrator Gregory D. Korduner.
The budget was based on an expected 10% increase in sales tax revenue over last year, but the actual increase has been about 3%, officials said. Korduner blamed the recession.
"We have already made substantial cuts in every department," he said.
The City Council must continue to look for ways to cut back expenses, said Councilman Jack T. Crippen. "The old story is, if you can't afford it, you don't buy it," he said. Crippen said one possible cut might be the $1 million the city spent so far this year on employee overtime.