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BONITA SPRINGS — Bonita Springs City Manager Gary Price is running out of ways to describe his financial frustrations.

Last year, he said the city’s budget was one of the most difficult he had ever prepared, as he struggled to keep reserves available and meet the needs of City Council and Bonita residents.

This year, the situation is far worse. Taxable property values have dropped 9 percent.

The city expects to collect fewer dollars from nearly all of its revenue sources, which it expects will result in a loss of $1.4 million in funding, and that is after a proposed property tax rate of $166.74 per $200,000 of taxable home value. That’s an increase of $21.86 over last year.

“Little did I know then,” Price wrote in his budget memo to the council, “that preparing this year’s budget would render that comment a gross understatement.”

Nonetheless, council approved the city staff’s tentative budget Saturday during a three-hour meeting.

The council discussed numerous budget items before voting 4-3 to approve the advertisement of a .8337 mill tax rate (83 cents per $1,000 of assessed property value) and a $22.3 million budget.

Among the items discussed were employee benefits, consultant costs, and the tax rate.

The council asked Price to cut in half the $50,000 cost of holiday lights after Councilman Pat McCourt raised the issue of their expense.

“We’re spending $50,000 on holiday lights and personally I’d like to see what $25,000 worth of holiday lights looks like,” McCourt asked, to scattered chuckles throughout the room.

At the beginning of the 9 a.m. meeting, city resident Susan Holmer didn’t have any trouble coming up with words to describe her budget frustrations. Holmer, who lives near where Old 41 Road and East Terry Street intersect, said a tax increase would be especially hurtful to the unemployed.

“There was talk of the millage rate going up. I’d just like to say that none of the people in my area are for the tax rate going up,” Holmer said. “I think we need to strap our belts here, tighten up a bit and look to see what is in the best interest of the city.”

McCourt and Councilmen Bill Lonkart and Richard Ferreira all voted against moving ahead with the budget and tentative millage rate, which must be advertised.

The council discussed the idea of cutting about $70,000 from the budget to avoid raising taxes, and urged the city staff to examine the option.

City resident Ron Pure, who organizes the local Taxpayer Action Group, said he was disappointed with the decision to move ahead with the higher rate.

Curtting $70,000 “would not hurt this city one iota,” Pure said after the meeting.

When it comes to consultant costs, it’s somewhat the fault of council, at least according to McCourt and Price.

The issue of the consultant fees, which the city expects will cost $167,084 in the budget year ending this month, was brought up by Lonkart. The money spent last year was used to pay only for the land use studies done on the city's east side by several outside consultants, Lonkart said.

“Don’t tell me that we can’t do a better job collectively,” Lonkart said of the budget. “I’m only one vote, but I’m not going to sit here and allow these expenditures. When you see operating expenditures increase 23 percent on average per year over the last 5 years that is not good management.”

Price countered, noting that consultant costs often increase when council postpones decisions on matters the consultants are helping them decide.

A recent meeting involved planning for the future of the city’s east side, specifically an area set aside two decades ago to control urban sprawl and groundwater resources. The council decided to hold a Sept. 18 workshop to continue the discussion.

That meeting likely will bring at least three consultants back to City Hall.

McCourt accepted the blame and thanked Price for the reminder.

“I would appreciate it if you could continue to do that,” McCourt told Price. “A lot of this is our fault and I would continue to encourage our staff to remind us of that.”

Despite projecting consultant fees of $139,500 in the budget, the figure is a decrease of $84,140 compared with the past year’s budget. Lonkart said much of the consultant costs for next year continue to be for studies on the DR/GR area.

The council also had a brief discussion about employee benefits, including car allowances and mileage reimbursement.

“The grant coordinator has a car allowance,” Lonkart noted, adding that eight employees have such allowances. “Why?”

Price said his car allowance, which is built into his contract, is less expensive than billing by the mile.

“I think you’re nickel-and-diming us, frankly. I mean come on,” Price said. “I’m driving to Fort Myers on Monday, now that’s a $29 trip.”

Pure also suggested the city look at employee health benefits. The idea of cutting the salaries of employees, who already have lost their raises, also came up.

Somel council members, including Martha Simons, said the city is paying less than many other area governments.

“We are next to last for what we pay employees and their benefits,” Simons said.

Another area where the city is being conservative, perhaps overly conservative, is in reserve funds, Price said.

Council voted 7-0 to declare a state of emergency at the meeting’s start, just in case Hurricane Ike heads this way. The declaration frees the city up from other responsibilities and regulations to focus on preparing and recovering from a hurricane.

City officials also canceled Thursday’s Sept. 11 service slated for Riverside Park.

But with a disaster reserve fund of $1 million and operating reserves of $3.6 million, Price said the city is at a minimally acceptable level for storm preparation.

“It’s a risky situation when you’re in a hurricane state. We are all not breathing very easily over what could happen,” Price said of the reserve fund. “We will get some impacts from Hurricane Ike -- it’s going to depend on where it takes the turn. I plan on putting up my hurricane shutters.”