For the 2010-11 tax levy, the Geneseo city council members are trying to decide between meeting their budgetary needs or not placing a burden on taxpayers.

The council is considering two tax levy increases, one of 10 percent and the second of 4.95 percent. A decision will be made at a special city council meeting on Dec. 21.

If the 10 percent increase in the total levy is approved, the city would receive approximately an extra $27,000 for the general fund.

Increasing the levy by that percentage would require a truth-in-taxation public hearing, which is scheduled for 5:30 p.m. Dec. 21.

However, if the increase is only 4.95 percent, no truth-in-taxation hearing is required. That rate would result in a $4,100 decrease in the general fund, leaving a void of $11,500 in the general fund for fiscal year 2011.

The city’s administrative services board, which first reviewed the options, voted 3-2 to recommend the 4.95 percent rate to the city council.

“The 4.95 percent doesn’t cover our budgetary needs, but we feel at this time it’s pretty tough for people to be asked to pay even more,” said administrative service board and city council member Curt Spensley at the council’s Dec. 8 meeting.

“Can we look to your (administrative services board) to come up with the money to meet that shortfall?” asked alderman Ed Deener. “Your position makes good ink in the paper, but you’re not coming to us with solutions.”

Spensley responded, “A lot of people in the community felt they already did something extra by voting for the sales tax increase.”

City administrator Teresa Savage said, by her calculations, a citizen who owns a $100,000 home would owe $5.06 with the 4.95 percent rate versus $12.40 with the 9.97 percent rate.

“Do you really think that extra $7 is going to make a difference?” asked Deener.

Alderman Arnie Schmid said, “I don’t like increases, but I tell you what, either we have to do it this year or next year or we have to tell the public what we’re going to cut.”

Linda Van Der Leest said some funds were available to make up for a shortfall. She said $30,000 was budgeted for a health insurance premium increase that didn’t occur.

Savage said though the city was lucky there was no increase, she still had to budget for a possible increase in future years.

In a memo to the board, Savage recommended the 10 percent rate. “Sales and income tax receipts are not likely to improve over 2010 receipts, and any new sources of revenue which might be considered in the 2011 budget cycle will be limited and designed to fill shortfalls which already exist,” she wrote.

Savage said other sources of revenue necessary to compensate for the loss in the general fund “are simply not available.”

At the regular December meeting, council members also:

• Extended an agreement with Dave Tennant of Geneseo Country Market. Tennant is in the process of purchasing the former Jewel store on Route 6. In June, the city council approved an incentive package with the developer. The original agreement had the opening date of the store at Dec. 31. That date has been changed to May 31, 2010.

• Accepted a bid of $8,850 from J & J Garage for the construction of a maintenance building at the wind tower site.

• Learned the historic fountain once located in the city park will be placed in the north park as a functioning fountain.

• Voted to make a $4,000 donation to the Geneseo Community Chest. “We’ve done this in the past, and, even in this time of tight money, I think we should still keep that up,” said Spensley.

• Heard a presentation of the audit of the general fund, electric, water and sewer financial reports for fiscal year 2008-09 from auditor Ron Amen of Lauterbach & Amen LLP. Amen, who gave his presentation to the board via telephone, said the city received the highest marks for its audit. “All numbers and figures are materially correct,” he said.

• Recognized city employee Luke DeGrave who recently rescued a fellow employee from a burning bucket truck. “We’d like it recorded in the city minutes that we officially thank Luke DeGrave for his bravery,” said Geneseo Mayor Pat Eberhardt.

• Acknowledged the 2009 Geneseo High School football team, which placed second in the state.