EPHRATA - Ephrata administrators asked city departments to prepare proposals including a 15 percent cut, after predicting an almost 9 percent revenue drop.

City Administrator Wes Crago presented the first draft of the 2011 budget to the city council at a recent meeting, telling them the projections are changing daily.

"This is a very fluid process for the next two weeks," he said. "This budget is very similar to how the budget looked last year."

At the moment the city's proposed expenditures are about $1.5 million above revenue projections. The largest divide is the current expense fund, where the city is looking at a $830,835 difference, according to city records. The current expense fund includes the administration and police.

"The revenue projection is down a little less than 9 percent compared to the same point last year," he said. "We're a little less than 4 percent up on expenses. There are a lot of expenses that we have no control over, just like in our personal lives, the rates go up, fees for services go up, everything from fuel to paper."

The city staff has cut expenses, attempting to lessen the impact of increased costs, Crago said, adding the department heads were told to bring a budget proposal with a 15 percent cut after being told not to increase costs in their first proposal.

"That is going to be a very difficult exercise for our department heads to do," he said. "We will be continuing to revise the revenue estimates. As revenue comes in that can change that picture to the positive and traditionally it does."

City staff is hoping the revenues will creep back up, allowing them to change the estimated revenue for next year, he said.

"Whether we still need to live with a 15 percent cut or not, it's likely we will," Crago said.

The staff has been trying to save money since July, he said, adding the money they save this year will be money they have next year.

"We are concerned about the snow situation. We are concerned about the state revenue forecast. We're concerned about what's going on with local sales tax. We're concerned about what happens with initiatives. All of those have an impact on our budget."

Crago said they used the worst case scenario for their revenue projection and it is more likely to get better than to stay the same.

Councilmember Bruce Reim asked about the $126,145 difference in the park budget, saying a large amount of items could be included in parks.

"Is it personnel? Is it equipment?" he asked.

Crago said it's a drop in revenue, saying the park budget was about $680,000 last year and are supported by property taxes and fees for programs.

"Property tax being the lion's share of that drop," he said. "Many recreation programs fund themselves or come very close to funding themselves."