NORMAL - Declining revenue and increasing costs have the Normal City Council looking for ways to avoid a general fund budget deficit in fiscal year 2009-2010.

"We've been tightening our belt but we're doing it further this year," said City Manager Mark Peterson. "There will be no layoffs but there's no new staff planned over the five-year budget … We're cutting virtually every operating line item and we're deleting or not funding a number of high priority capital projects."

During a City Council retreat last week, council members learned the proposed 2009-10 budget does not include money to implement a bicycle/pedestrian plan; to convert a town-owned house at Underwood Park into a "green" showcase; to increase funding for the Harmon Arts Grant program; or to fund the community technology plan.

A planned extension of Constitution Trail at Eagles Landing has been postponed, town employees will not be able to travel out-of-state for conferences, and funding for street resurfacing has been reduced.

The council will consider the proposed five-year plan for major projects during a work session at 5 p.m. Monday at City Hall.

Peterson said the council is looking at several options to increase the amount of money coming into the budget. Among them:

- Charging a fee when a vehicle is towed after someone is arrested for driving under the influence;

- Charging to unlock a vehicle;

- Increasing the home rule use tax by a quarter percent. Residents pay this fee when purchasing a vehicle;

- Creating a business license fee;

- Charging a fee for liquor license holders who opt to pay their license fee in two installments;

- Increasing admission to the Children's Discovery Museum by $2, from $4 to $6;

- Increasing fees at Ironwood Golf Course by $1.

"The average resident won't notice a change in the quality or quantity of service," Peterson said. "We can do this for a year, two or three, but if (the economic downturn) goes beyond, it will be difficult to maintain the same service level with the same or fewer employees."

Peterson noted Normal is far better off financially than many other municipalities. The Twin Cities has a good local economy and the town has good financial reserves.

But, he said, rising state unemployment has lowered the town's share of state income tax - a significant revenue source for the town. Sales tax revenue, the largest single revenue source, also has been affected.

"We've already seen spending patterns change," Peterson said. "People are holding off on major purchases as a precautionary measure."

Meanwhile, the cost of town purchases is going up: asphalt, concrete, salt, water treatment chemicals, construction bids.

The belt tightening won't affect the uptown redevelopment project because most of the significant costs have already occurred, Peterson said. The revenue to pay off the town's bonds also is in place.