Mayor David Coss formally changed direction on fixing the city's $8 million budget gap Monday. Rather than pushing for an increase in property taxes, he changed the language of a proposed resolution to allow use of reserve funds instead.

But councilors on the Finance Committee decided to defer action on the city budget for the fiscal year that begins July 1 and tackle the issue again at the next planned committee meeting April 28.

In addition to the idea of using $4 million in reserves from the Wastewater Division, councilors also have discussed cutting wages and benefits of city employees and furloughing them without pay.

"We really need to go back to the table and work this out," Councilor Rebecca Wurzburger said.

Wurzburger said she has concerns about the strategy of using reserves because it's not a long-term solution to a recurring problem.

"Why would we make decisions today that a year from now would put us in the same financial conundrum?" Wurzburger said. "We need to be more thoughtful and look out further, not just come up with a budget that addresses this year's problem."

Meanwhile, Councilor Rosemary Romero, one of the four councilors who supported Coss' property-tax resolution and his subsequent reserve plan, said she's looking toward "packaging" a compromise.

"I actually have not let go of the tax increase," she said, noting that a lower tax increase than originally proposed, combined with some use of reserves, could be a workable solution.

Councilor Carmichael Dominguez, also listed as a supporter on those plans, said he still favors the property-tax plan "to some degree" and reiterated that he's not in favor of staff cuts.

Although prior public hearings on the tax proposal drew large crowds both for and against a tax increase, the audience for Monday's debate was smaller. Still, those present gave policymakers an earful.

Representatives from the city's branch of the American Federation of State, County and Municipal Employees said the city could make more efficient choices, including collecting fees that are on the books but are not paid, or by changing its allocation for city uniforms to reflect actual spending. The group provided printed materials to councilors but did not make the information available to others.

Some union members asked officials not to take the tax off the table.

"We can't be putting Band-Aids on the budget anymore," said Lawrence Vigil, union president.

Fire union president David Jenkins added that his department needs cash for costs associated with forthcoming annexation and doesn't see how emergency providers can properly do their job with more city territory and less money.

San Juana Gonzales, a lifelong city resident who is retired and on a fixed income, said she likes the idea of using reserves.

"Take the Band-Aid for now and work on the future," she told councilors.

Homeowner Doris Gallegos said she didn't want councilors to raise property taxes or cut salaries, but instead asked for an increase in gross-receipts tax rates.

Using money from the Wastewater Division reserve fund would require approval of a city ordinance allowing a transfer from utility operations into the general fund. Historically, officials have funneled money in the opposite direction.

In addition to finding $4 million through a tax increase, reserve raid or other plan, the city manager already has identified nearly $4 million in spending reductions for the next fiscal year, largely through eliminating middle management positions that are vacant.

Contact Julie Ann Grimm at 986-3017 or jgrimm@sfnewmexican.com.