The city of Lincoln faces yet another multimillion-dollar budget shortfall this year due to what the mayor on Tuesday called a "fiscal perfect storm."

Mayor Chris Beutler would not specify how big the shortfall will be, but said this year will be no easier than last year, when the city had to close a $6 million gap.

City Councilwoman Robin Eschliman said the shortfall has been projected between $4 million and $6 million, depending on the month.

Unless revenue increases, Beutler said, this budget year is "likely to be a milestone in the city's history."

"I need the community to understand that this year, the budget stakes are higher than ever," he said. "The choices we make will have a real impact on what kind of city we will be down the road."

Of the three budgets he's worked on since being elected in 2007, Beutler said this is the most difficult.

The primary problem is that the city's two major sources of money are deteriorating: Sales tax revenue is $1.5 million behind projections, and total property valuation is expected to drop three-fourths of a percent this year, compared with last year.

Lancaster County Assessor Norm Agena would not confirm the estimate released by the mayor, but said it's possible the city's overall property value will drop for the first time in his 19 years in the assessor's office.

"This is a first for all of us," Agena said.

Lower property values translates into fewer property tax dollars for the city, schools and county.

Beutler said the cuts required to balance the budget will be more painful than in past years because the city is running out of "low-hanging fruit" to pick.

To help city officials decide how to deal with the budget gap, the mayor's office launched an online survey through the city Web site. People will be asked whether they'd be willing to pay more property taxes to keep neighborhood pools and libraries open, for example.

The survey specifies exactly how much property taxes would have to increase, for the average homeowner, to save programs and services in danger of being axed.

"As you will see, the choices are not easy," Beutler said.

The survey will not be scientific, but it will help officials decide how to mold the 2009-10 budget. It also aims to educate people by showing how much it takes to save programs and how much the average household pays in property taxes for city services - less than cable TV, for most people.

Survey participants are told they can save all the programs specified by increasing their property tax bill an average of $1.75 per month. But Beutler said it's too early to say whether he'll propose a property tax increase.

The mayor makes budget decisions in May, and the budget is released to the public in June. Then the City Council makes changes in July and August.

The city is working on the survey with the University of Nebraska Public Policy Center - as it did last year in a similar effort. The Public Policy Center will be paid $47,000 through funding from the Sloan Foundation.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.