DECATUR - The city of Decatur released a summary of its budget for the upcoming fiscal year, detailing plans for an increase of nearly $9.3 million over the current budget.

"A lot of this $9 million isn't new money being drawn from taxpayers," Assistant City Manager Billy Tyus said. "It's going to be funded from existing revenues or (tax increment financing district) funds, things like that."

The Decatur City Council on Monday cut short a review of the budget, urging city administrators first to provide a summary that explains clearly where the money would go.

"I would suggest a full timeout," Councilman Michael Carrigan said.

The council will regroup at 4:30 p.m. Thursday at Tuscany Steak and Pasta House, 1099 W. Wood St., in a special session to study the budget.

City Manager Steve Garman's proposed budget for the upcoming fiscal year totals nearly $117 million.

City administrators emphasize the bulk of the budget increase does not rely on "new" money from taxpayers.

For example, funding for dredging Lake Decatur and new water supply development comes largely from money on hand from the sale of the city's north water treatment plant to Archer Daniels Midland Co.

Initial plans to construct a new reservoir met a wave of opposition from residents near Mount Zion and South Wheatland Township.

Mayor Paul Osborne and Carrigan will join members of several local governmental bodies on the Greater Decatur Water Commission to address concerns about such a project.

"There's still a lot of work to do," Tyus said. "Having said that, we need to be ready in the event that we come to some sort of resolution."

The city borrowed money to improve West Main Street, and those funds will be repaid with money generated in the Olde Towne tax increment financing district, Tyus said.

Funds for Looking for Lincoln already have been collected through a hotel and motel tax.

Reserves also will be drawn down this year by about $17 million.

The city projects a beginning total fund balance of about $145 million. Nearly $100 million of that consists of police and fire pension funds. The city projects an ending fund balance of about $128 million.

And pension costs continue to escalate.

Pension costs for police, fire and city workers totaled $3.5 million for fiscal year 2002. That number is expected to rise to about $7.2 million for the upcoming fiscal year.

The number of city employees will be held steady at 556.

Osborne commended city administrators for putting together the budget summary.

"This summary makes it very clear where the money will be spent," Osborne said.

Osborne said the city is not on a "wild spending spree," noting the number of city employees remains steady.

Former councils approved new revenue sources in recent years to maintain city services they deemed vital.

New revenue sources include a 2 percent food and beverage tax, a 1.25 percent utility tax, a 6 percent telecommunications tax, a 0.25 percent sales tax increase and an increase in liquor license fees from $1,450 to $2,000.

The city has little control over escalating pension costs, Osborne said.

Some have suggested the city should not have a swelling budget as the population declines.

Osborne disagrees.

Few citizens would want a smaller police force or fire department because of a population drop, Osborne said.

"The logic of that, it just doesn't work," Osborne said. "We still have the same streets. We don't eliminate 10 percent of the streets when we lose population."

The city has even grown slightly geographically, Osborne said.

"The prices keep going up for everything," Osborne said.

Members of Macon County Shared Vision, a group that promotes "growth-friendly" policies, urged the council to practice fiscal constraint.

Stephen Daniels, a member of Shared Vision, suggested the council consider decreasing taxes, returning "excessive" cash reserves to taxpayers, limiting the growth of pension and health insurance costs and improving the transparency of government finances.

A citizen budget commission could be formed to help find ways to control costs, Daniels said.

Daniels encourages searching for ways to control "runaway" pension costs.

Some governmental units are considering replacing pensions with defined contribution plans, which are common in private business, Daniels said.

"It should not be an acceptable position for managers of the taxpayers' funds to say that we cannot control these costs," Daniels said.

Mike Frazier can be reached at mfrazier@herald-review.com or 421-7985.