Starting Nov. 2, the New Albany City Council can slash the 2010 budget as much as they want.

That was the message relayed by Mayor Doug England during a council workshop Tuesday. It was a last ditch effort by England to convince those opposed to the 2010 budget to change their minds before tonight’s decisive third reading of the measure.

The council failed to pass the budget on the first two attempts, with some members calling for England to make cuts in the plan before it’s approved.But there’s more at stake than just the budget, which has to be passed by Nov. 1 or the city would revert back to last year’s numbers.

An appeal to the Indiana Department of Local Government Finance, or DLGF, to increase the city’s 2009 maximum property tax levy is dependent on a 2010 budget being passed.

The council approved making the appeal last week, which could mean $544,000 in additional revenue for 2010 if the state grants the motion.

But if the council fails to pass the 2010 budget, it would lose the chance at the appeal as well as capturing its maximum levy amount for next year.

England promised the 2010 budget will be balanced by Jan. 1, but said he needs time to negotiate with the city’s fire and police unions to cut costs.

He’s also urging Floyd Memorial Hospital and Health Services to partner with the city in covering ambulance expenses. If Floyd Memorial doesn’t help, New Albany will likely have to eliminate runs for both its ambulances to meet its budget, England warned.

“We’ll do whatever has to be done before Jan. 1 of 2010,” England said.

England and Deputy Mayor Carl Malysz met with hospital officials this week and they were “very receptive” to the idea of aiding with ambulance costs, England said.

The mayor is also proposing that city employees start paying 15 percent of their health care premiums, as opposed to the 10 percent they pay now. That would save the city $172,000 next year, according to England.

A city worker utilizing the single coverage plan would see an increase of about $2.50 a month in premium costs, City Controller Kay Garry said.

The fire and police unions will have to agree to voluntary cuts in expenses or face layoffs, England cautioned. He added a firehouse could be closed if not.

Reducing the number of firehouses from five to four would not hurt the city’s ISO rating, which factors into property insurance rates, England said. The council will get a written statement promising the rates won’t be impacted by closing a firehouse, he continued.

But the first step is the council getting the budget before the body now, passed so the changes can be made thereafter, with the hope 2010 will be supplemented with additional property tax money from winning the levy appeal.

“If you don’t get that budget up [to Indianapolis] in time, you’re not going to get [the maximum levy],” he said.

But only four members attended the workshop, of which only Jeff Gahan voted against the budget on first two readings. Councilwoman Diane McCartin-Benedetti and Councilmen John Gonder and Jack Messer were also there.

Council President Dan Coffey said at the last meeting that it was time for England to announce where the cuts would come from in 2010, but Benedetti said before the workshop he would not be able to make it due to illness.

The 2010 budget before the council is just less than $16 million. While some council members are afraid the city will be cut by the state again next year, Garry said she was assured during a recent meeting with the DLGF the 2010 budget is workable.

A DLFG official told Garry the 2010 plan as it stands “is a budget that you can meet next year,” Garry said.

But reducing the 2010 budget would give the council a level of security that it would hopefully avoid a shortfall in its property tax collections next year, Garry said.

She added the council can advertise a budget reduction throughout the year just as easily as it can an appropriation.

She suggested the council “watch the spending habits and make the cuts as you go,” for 2010.

Tonight’s meeting begins at 6:30 p.m. in the third-floor Assembly Room of the City-County Building.