BLOOMINGTON - Every time the City Council talks about its budget, city employees know their jobs hang in the balance. | Bloomington may cut up to 60 jobs | DATABASE: Bloomington employee salaries (FY 07-08) | Normal employee salaries not busting budget | DATABASE: Normal employee salaries (FY 07-08)

The city already has overspent its $77 million general fund budget by $5 million for this year, meaning it will start fiscal 2009-10 deep in the red. To help erase that deficit, city officials anticipate making $4 million in cuts to its work force for the coming fiscal year.

City Manager David Hales said Monday the city likely will eliminate 40 to 60 jobs in the budget that will start May 1, and freezing salaries and changing benefits also have been on the table.

"The other day, I had a city employee on the back of a garbage truck smiling and waving to me," said Ward 7 Alderman Steven Purcell. "I know that employee probably doesn't have enough seniority to keep his job if we start cutting. That breaks my heart."

Salaries and benefits account for about 59 percent of the general fund's current $77 million budget. Of that, $35 million pays salaries and $12.8 million pays benefits for the city's 650 full-time employees and about 200 part-time employees.

Estimated revenues for the city's fiscal year 2009-10 budget are about $78 million, assuming federal stimulus money and local tax increases go through.

Ward 2 Alderman David Sage said he doesn't know how the city can begin to rein in spending without looking at its payroll. Ward 5 Alderman Jim Finnegan called layoffs a "last resort."

Ward 1 Alderman Allen Gibson said layoffs may be the only option, given the number of union contracts that lock the city into certain payment responsibilities for a set period of time.

"We know the city is in a bad spot and we are ready to sit down and work with them on this," said Tony Penn, business manager of Laborers' Local 362, one of nine unions that represent city workers.

Penn is afraid there won't be any negotiations during a meeting at City Hall on Wednesday. "I'm hoping (that meeting) is going to be more than being told who is getting cut," Penn said.

Local 362 represents about 65 people who work as building inspectors, support staff and parking attendants.

Ward 4 Alderman Judy Stearns wants as many programs cuts as possible before staff is cut. Aldermen Kevin Huette Ward 3; John Hanson, Ward 8; and Jim Fruin, Ward 9, said the city should look at its benefits packages for cuts.

"Years ago, city jobs weren't high-paying but the benefits were great," Huette said. "I think we are seeing the best of both worlds nowadays and some of that balance needs to be brought back."

A hiring freeze and an early retirement program were instituted last year as a way for the city to trim salary costs.

Even all that, Ward 6 Alderman Karen Schmidt acknowledged, may not be enough.

The council doesn't want to cut police or firefighter jobs, and the fire department will be putting fewer firefighters at each station once the $3 million Station No. 5 opens this spring.

Schmidt and Stearns aren't comfortable with the plan.

"We are talking about lives here, and if we have to delay the open of No. 5, then so be it," Schmidt said.