Connell will lose a public works employee and ask city employees to pay more for their health insurance as the city council struggles to balance the 2011 budget.
The council considered cuts from the $5.5 million budget on Monday.
Council members wanted to reduce the $136,000 in reserve funds that would have been used to balance the general fund, said Steve Taylor, city administrator.
The general fund budget, which pays for services such as fire, police, some staff, and building and planning, was estimated at $1.9 million before the proposed cuts.
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The cuts would include laying off a public works employee and not purchasing a public works vehicle, Taylor said. The city also will reduce the amount spent on street striping and maintenance.
The council also is considering a less expensive health plan from the Association of Washington Cities that has a higher employee deductible, he said.
Those reductions would cut the general fund budget to about $1.8 million and the street fund to $421,000, Taylor said.
The outcome of talks with the police union for a 2011-13 contract also could change the budget, Taylor said.
The city council may vote on the 2011 budget at its Dec. 1 or Dec. 20 meeting. Public comments are accepted at all council meetings.