SACO — The City Council is looking to reduce the draw on the undesignated fund as it continues to work on a municipal budget.

The council was initially scheduled to vote on the municipal budget May 16, but Mayor Roland “Ron” Michaud said at a budget workshop Monday night that it wasn’t going to happen.

“We don’t totally know where we’re going. I’m still driving this car and looking in the rearview mirror,” said Michaud.

The charter requires the budget be passed by the first Monday in June.

In March, City Administrator Richard Michaud proposed a $20.6 million municipal budget that required a $1.9 million draw from the city’s undesignated fund. This proposal would have the fund go down to less than 1 percent of the overall budget. The city policy requires the undesignated fund balance at 8.33 percent to 10 percent of the annual budget.

The city administrator presented an adjusted budget Monday night that proposes a $1.3 million draw on the undesignated fund balance.

Councilors scrutinized the budget to work to reduce the draw even more, although they had different comfort levels on what they wanted the fund draw level to be. Councilor Margaret Mills said she was comfortable with a $600,000 draw. Councilors Leslie Smith, Marston Lovell and Marie Doucette wanted it at zero.

“We don’t know what’s ahead of us,” said Doucette.

Councilor Phillip Blood said he’d like to see a zero draw on the undesignated fund balance, but he didn’t think that was realistic.

Councilor Eric Cote, after making suggestions, came up with a draw of about $950,000, with which he said he was comfortable.

Cote proposed a number of reductions that he said would not reduce services, including cutting $2,000 from the city clerk’s budget to restore vital records; $11,000 from the economic development budget that would be used to market the city; suggesting the auditor not present his report to the council, which would save $400; and proposing the city hire a part-time in-house lawyer instead of contract out legal services.

Cote also took into consideration the city would be receiving about $9,000 for the lease of the Central Fire Station Parking lot and a suggested $190,000 savings for Saco in the regional school unit budget.

The council also discussed cutting $13,000 from the police department’s equipment budget.

Lovell proposed a number of “nickle and diming” efforts to “maintain a solid fiscal condition.” He proposed furlough days, first 20, then 10, which raised some concerns from fellow councilors, and the city administrator said he wasn’t sure the city could enforce them with its contracts.

Smith said that 10 furlough days was the equivalent of one paycheck.

“That’s a tough hit,” he said.

Doucette said she thought 20 furlough days was a lot.

“Is city hall going to be closed one day a month?” asked Doucette.

The city currently has seven vacancies, and Lovell proposed keeping the city’s budget at seven vacancies. There was some concern from other councilors, as three of the current vacancies are in the police department. Lovell said he wasn’t naming specific positions that would be cut, just suggesting the city maintain its current employment level. The city administrator said this would be difficult as the city did not have one large employee pool.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, Ext. 325 or egotthelf@journaltribune.com.