HAYDEN - The Hayden City Council Tuesday night approved a tentative $2.57 million general fund budget for fiscal year 2012, which is down from this year and doesn't include hiring new employees or raises of any kind for current staff.

The council and city staff conducted five budget workshops to reach this preliminary agreement. A public hearing and adoption of the final budget is scheduled for Aug. 23.

"It's been a difficult process, a long process, and it hasn't been fun," said council President Roger Saterfiel.

He thanked the city staff members for their work getting the budget to this point.

Hayden's 2011 general fund budget was for $2.77 million, equaling a decrease this year of $205,000.

Mayor Ron McIntire said there were "quite deep" cuts in some areas of the city's budget.

Revenues have declined, in large part, due to a slowdown in building. The city is projecting $174,000 less in what it calls "community development fees" from building activity compared with this year.

The projection is based on current building activity.

While the city projected revenues of $2.77 million for this year, the actual dollars are going to be closer to $2.5 million, for a difference of $265,000. Again, building activity hasn't occurred at projected levels.

The city had to take $400,000 from its $3 million emergency fund to balance its 2012 budget. The city is projected to pull $140,000 from the emergency fund this year.

In the years prior, the city was adding to the fund as revenues exceeded projections.

To come to a tentative agreement Tuesday, the City Council had to decide between having one-third of its employees work fewer hours or reduce spending on street work. It chose the second option.

The City Council considered reducing 10 city staff members hours worked by five to 10 hours per week for the next fiscal year.

To maintain service levels, salaried workers would have had to do additional work to make up the difference.

Instead, the council chose to cut two employees' hours worked and reduce spending on street maintenance.

The city budgeted $255,000 for street maintenance and striping, which meant $5,000 less for striping and $15,000 less on maintenance.

Because of the level of street maintenance needed, the city actually needs closer to $500,000. The city budgeted $100,000 for streets in this year's budget.

According to budget numbers provided to The Press, property taxes were increased the 3 percent that's allowed, generating an additional $30,000 for the 2012 general fund budget. Property taxes on new construction added another $12,000.

The city budgeted $1.04 million in property taxes for 2012, with the $42,000 total increase compared with this year's budget.