The recession may be over for some, but Delaware city manager Tom Homan doesn't expect to see substantial relief from declining revenues until 2012.

His 2010 budget message to council advocates remaining in an "entrenchment management" position for the coming year in order to pass a balanced budget that, as proposed, has several departments operating at funding levels below 2008 amounts.

The city's 2009 budget was about $22-million. Homan proposes expenditures be kept to $21.2-million in 2010, with revenues expected to come in at $21.3-million.

"Our city is still in better shape than other municipalities," said newly elected mayor Gary Milner. "Every time I pick up the paper, another city is laying off hundreds of people. I think with this council, we've kept a close eye on it (the budget) before and we will have a few tough decisions coming up when it comes to personnel and some other things. I know we'll work through it. I know we will have a balanced budget."

While many of the proposed cuts are coming from non-employee areas, such as travel and training, there is no way to cut nearly $800,000 from an already lean budget without cutting positions, Homan said.

In initial budget meetings with department heads and union officials, Homan proposed a wage freeze that would save the city about $556,300 in 2010, $168,400 from non-union employees and $387,888 from union employees.

All of the city's bargaining groups and one professional association rejected that plan, Homan told council.

As a result, Homan modified the budget to cut six union jobs: a public works technician, two police officers, a firefighter, one clerical job and a plant maintenance technician, for a savings of $448,072. Three of those positions currently are vacant, Homan told council. The nonunion wage freeze is still proposed.

The proposed budget also includes another $456,903 in savings by reductions in professional services, travel and training, operating supplies, memberships, facility and equipment maintenance, and equipment purchases.

City financial director Dean Stelzer anticipates income tax collections will total $10-million for 2010, down about 2.5 percent compared to 2009.

A projected 4.6-percent increase in property tax revenues will be offset by an expected 4.6-percent decrease in state and federal funding.

Revenues are projected to be flat for hotel-motel tax revenues and prosecutor contract revenues.

A 2.8-percent increase in cable franchise fees is expected.

Homan's budget also includes some proposed policy changes that council will discuss during budget hearings in the coming weeks.

One discussion will center on a possible public safety levy to help fund fire and emergency management services.

Homan is also proposing a cut of $25,000 from the general administration budget that would eliminate fireworks for next year's July 4th celebration.

"Eliminating the fireworks allocation was a tough decision and I am hopeful that the city can work with local businesses and vendors in 2010 to share in the cost ... so that we may still have a show," he wrote in his budget message.

Council will hold the first public hearing on the budget at its meeting at 7 p.m. Nov. 23.

The second hearing is set for Dec. 14; the third hearing and budget adoption tentatively are scheduled for Dec. 28.