SANDPOINT — Constructing a city budget is never easy, but the processes becomes downright Herculean when combined with revenue shortfalls and a sagging economy.

Having already met for three workshops and with another scheduled for later this week, the City Council is waist deep in the budgetary process.

Among other things, the council is wrestling with idea of increasing the budget by 3 percent, which is the maximum allowed under Idaho Code. Councilwoman Helen Newton has vowed to vote against any budget that includes the 3-percent hike, despite Treasurer Shannon Syth’s assurance the increase would not raise taxes.

“It’s simply a matter of principle to me,” Newton said. “You don’t just take the 3 percent just because you can. People are having a tough time right now, and I say if (taxes) will be lower with the 3-percent increase, then they will be even that much lower without the 3 percent.”

Newton said the down economy means everyone has to tighten their belts, including the city.

“You have the mayor saying, ‘There is no fat in this budget.’ Well, if you can cut $100,000 out of it and nobody is suffering, then obviously there was some fat,” she said. “I would be hard-pressed to say that there is any government budget at any level that doesn’t have some fat in it.”

As a small-business owner, Councilman John Reuter said he is well aware of the challenges involved in balancing a budget. He said the council’s number one priority during today’s economy is to make sure every dollar is well spent.

“(We are) wrestling with the tough questions in this economy and making sure that every tax dollar and every rate payer dollar goes as far as possible,” he said. “That’s what everyone is talking about, making sure those dollars are stretched as far as they possibly can be stretched.”

Reuter has not yet decided if he supports the 3-percent increase, but said he would like to see a final budget that is smaller than last year’s.

“I can guarantee I won’t vote for a budget if it’s greater than last year’s budget,” he said. “The budget will shrink again and the budget should shrink again.”

Reuter said he wants to hear from Sandpoint residents about their goals for the budget. His cell phone number is (208) 550-1713.

The council hopes to have a preliminary budget done in time for its July 15 meeting.