AUBURN – A growing municipal budget is being driven by health insurance and wages, according to the city manager.

Councilors began their fiscal year 2004 budget discussions Monday night with their first look at City Manager Pat Finnigan’s $59 million detailed draft budget. The budget calls for a $1.57 million increase in property tax revenues – a 4.62 percent increase compared to this year.

Now councilors will begin paring that budget. Finnigan said she has a list of policy changes to present to councilors that could mean significant savings.

“I hope that you realize the amount of review and conscientiousness that went into this budget,” Finnigan said. “We’ve worked hard to get to this point. That’s not to say that we’re done. There are changes that can be made, and those could involve some cuts and they could involve some revenue generators.”

But Finnigan said she couldn’t discuss those budget-savers until she has presented them to councilors. That should begin at the council’s next budget workshop on May 12. A second budget workshop is scheduled Wednesday, May 14.

“They are simply operational improvements,” Finnigan said. “There are ways of making the city staff work more efficiently and smarter. I know it sounds cliché, but we need to find new ways to make the most out of our limited resources.”

Pensions and insurance, wages, benefits and debt service account for $1.16 million of the overall $1.78 million budget increase.

“These are the budget drivers, what we point to as the reasons for the budget increase,” Finnigan said. “Debt service, what we use to pay down our bonds, that absolutely has to do with economic development. And benefits and wages are increasing around the state.”

For example, fire department regular and overtime salaries would increase by $110,000 under the proposed budget. Public Works salaries are slated to increase about $98,000 and citywide pensions and insurance benefits would go up $117,000. The city has another $270,000 set aside in salary reserves to help pay for labor contracts due this year.

This was the councilors first chance to see the detailed budget. Finnigan said she put copies of the summary budget and department overviews in the councilor’s city mailboxes last Wednesday – the day budgets were due, according to the City Charter. Most councilors didn’t see the budgets until Friday, however, when they picked up their packets for Monday’s meeting.

Councilors did review and sign off on spending recommendations for the programs Auburn and Lewiston fund together. That includes $9,129 for the Emergency Management Agency, $788,421 for the 911 Call Center, $131,915 for the Auburn Lewiston Airport, $92,230 for the Lewiston-Auburn Economic Growth Council, $97,925 for the Citylink bus system and $21,000 for L/A Arts.

“These are all bargains,” Councilor Kelly Matzen said. “It’s hard to imagine all of the economic development the growth council provides for that money.