Saying he has cut the budget as far as he can without jeopardizing swimming pools, library hours and other crucial city services, Mayor Chris Beutler proposed a 1-cent increase in the city property tax levy on Thursday.

The $1.5 million generated by the tax increase would be enough to bridge what’s left of what started out as a nearly $6 million budget gap.

If — and it’s a big if — the City Council goes along with the proposed tax increase, the owner of a $150,000 home would pay another $15 annually.

Beutler put it this way: For the owner of the average Lincoln home, the increase would be the equivalent of the cost of a bottle of pop per month.

And it would be the first increase in the city’s property tax rate — aside from voter-approved bond issues — in nearly 15 years. The city’s tax rate has dropped 45 percent since 1993.

The alternative is to close pools, cut library branch hours and eliminate school resource officers, Beutler said.

His $135 million budget proposal — which must be approved by the City Council — increases spending by 2.6 percent. That’s assuming, as other taxing entities have, a paltry 1 percent increase in the property tax base, although final figures won’t be in until August.

Beutler also is proposing $120,000 in fee increases for parks, planning and health department services — including a 25-cent increase in pool fees. The budget also assumes a 4 percent increase in water and wastewater rates next year.

While the proposed tax increase will get most of the attention, Beutler erased the city’s shortfall primarily with budget cuts that include the following.

* Eliminating 65 full-time equivalent positions out of the city’s work force of about 2,000. That’s 20 more than Beutler projected he would cut in mid-June. Many of the jobs will disappear through restructuring, retirements or unfilled vacancies, but roughly 12 to 15 would be pure layoffs, unless they find jobs elsewhere in city government.

* Of those 65 positions, 10 will come from StarTran bus ranks, although some would be unfilled vacancies.

* Reducing StarTran bus service by three hours midday on most routes during non-peak times.

* Reducing city funding for before- and after-school programs at Community Learning Centers by $273,000, as he earlier announced.

* Closing Bennett Martin Public Library at 6 p.m. rather than 9 p.m. on most weekdays. Five library positions would be eliminated.

* Ending city funding of the Meadow Heights swimming pool. The city is exploring possible operation of the pool by a private group.

A tight budget makes it tough for the mayor to propose many new programs or expenditures, but he does propose to:

* Spend $150,000 to study fire and rescue coverage areas and response times.

* Spend $25,000 to start a graffiti removal program.

* Tap into a little-used $10 million Special Assessment Revolving Fund to create a one-stop development shop at city hall and create an economic development kitty.

* Spend $610,000 on a home ownership stimulus package — people who buy new homes could get grants of $1,000 or more.

* Expand the Ride for Five discount bus program for low-income riders by expanding income eligibility.

Beutler said the budget is being strained by inflation, rising utility costs and skyrocketing fuel costs.

And although his budget assumes average 2.39 percent raises, which would cost $3 million, actual raises are likely to be higher because five of the city’s six unions are still negotiating labor contracts.

And if the City Council chooses not to go along with Beutler’s proposed tax increase — as four Republican members have indicated — it will have to find $1.5 million in cuts or revenue.

Some council members have indicated interest in dipping into the city’s $10 million Special Assessment Revolving Fund. The fund is not used as often as in past years, and Beutler wants to use about $8 million of it for the economic development kitty.

Council Chairwoman Robin Eschliman said she believes the city should follow the direction given by Lincolnites surveyed by Beutler earlier this year. Only 15 percent said they’d support a tax increase, while 34 percent said to cut spending and 42 percent said to find some other solution.

“The scientific results gave very clear direction as to what the citizens want,” Eschliman said in a prepared statement. “I will be watching to see that the wishes of the people are carried out.”

Beutler vehemently opposes any council inclination to use such one-time revenue sources as the Special Assessments fund for ongoing budget needs. He says the city has gotten itself into a budgetary bind by plugging budget holes with such temporary sources of cash.

But Eschliman said she takes “great exception” to his characterization of using the Special Assessments fund as a gimmick.

“The savings account does not belong to Chris Beutler,” she said. “It belongs to the people.”

The council will begin dissecting the budget in detail next week, and must approve a final budget in August.

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