Warsaw's city council is trying to work some magic on the 1998 city budget - holding down the tax rate while maintaining or even improving city services.

In a special budget meeting Tuesday, council members asked department heads for last-minute cuts in their individual budgets. The cuts may be made, Mayor Ernie Wiggins said, if that's what it takes to keep the tax rate at or around $2.63.

While the final tax rate won't be set until the budget is reviewed by the state tax commission, the council did set an upper limit of $2.78. However, that was a limit Wiggins thought would not be reached.

"There's no way I'm going to let it go to $2.78," he said.

The council cut the police and fire pension funds since not as many firemen and policemen as expected are scheduled to retire.

Still, that was a cut that not all council members were happy about.

"I will agree this year, but I won't do it again," said councilwoman Tammy Rockey.

The park, fire, street and cemetery departments all agreed to further cuts. In some cases, the cuts will delay the purchase of needed equipment.

Councilman Jerry Patterson said he thought $90,000 could still be cut out of the city's nearly $11 million 1998 budget.

"You cut the money out and if you don't have the money you don't spend it," he said. "If you need the money, you find the money somewhere else and transfer it."

Wiggins pointed out that the tax rate for Warsaw has not gone up since 1990.

"We can keep the rate at $2.63, but we'll have to give up personal services to do it," he said.

Wiggins and Warsaw clerk-treasurer Elaine Call will meet with the state tax board next week to finalize the budget and tax rate. [[In-content Ad]]