Though the Slidell City Council passed a $41 million operating budget for 2010, it didn’t come without argument in a tense and very long council meeting Tuesday night.

The council had tabled the budget bill at its May 12 meeting because they wanted to get more input on the issue of declining tax revenue and to add amendments.

Though the budget did pass by a vote of 7-2, the council also voted for a bill that would not give city employees a proposed 2.14 percent raise but would freeze the salaries of all elected city officials. The council left it up to Mayor Ben Morris to decide on raises for city employees and also to make some $710,000 in budget cuts. The decrease in revenue and the increase of city expenses was a big factor in Tuesday night’s debate over the budget.

Councilman Joe Fraught made a presentation before debate on the budget that showed how the city’s operating expenses are increasing while sales tax revenue has decreased, making for a very tight budget.

“Either city services or jobs will have to be cut if revenues remain flat,” Fraught warned the crowded council chamber.

The majority of the council agreed the state of the national economy did not bode well for the city. To prevent that, the council passed three amendments to offset any financial losses in the future. One amendment would lower the city administration’s projection of sales tax revenue from $19.2 million to $18.5 million, despite Finance Director Sharon Howes’ protests that she had already reduced the projection by 10 percent.

The second amendment mandates the city set up a special fund where all salaries and benefits for job vacancies would be stored in the event the job positions were filled.

Finally, the council passed an amendment that would take out a $10 million bond issue previously added to the budget, because the voters will not vote on the bonds until October.

The bonds will go for road and drainage repairs. Howes said she put it in the budget in the event the voters approved. However, council members Ray Canada and Richey Hursey said the budget should reflect actual revenue and expenses.

“We can always add it to the budget if the voters approve it,” Hursey said.

Morris was adamant about giving city employees a raise, and said that he does not believe in all the “doom and gloom” from the council on the economy. He said the administration has done a good job and the city finances are healthy. He pointed out that the city has over $4.6 million in several contingency funds in case the city faces some real financial hardships. He even said that there would be a surplus of between $1.6 and $1.8 million.

“Sharon Howes and I have watched the budget like a hawk,” he said.

He even laid down a bet to the council that showed his optimism.

“I bet you all a steak dinner that before I leave office you will see the economy turn around and get better,” Morris said.

But he said he would go along with what the council has laid out and will take on the responsibility of further budget cuts and giving the employees a raise.

Some council members though said they were just being realistic about the current economy. “People like to be optimistic,” Canada said. “But this is a matter of being prudent. If we are wrong, we will know by December.”

Fraught said the council is playing it safe by being “ultra-conservative.”

Cusimano said he sees it as a win-win situation for the city.

“If the economy stays bad, we will be protected. If things improve, that’s more for the city,” Cusimano said.

The amended budget passed by a vote of 7-2 with Warren Crockett and Kim Harbison voting against.

The council also unanimously passed a bill that sets the millage rate for the fiscal year at 27.82 mills to cover the expenses of maintenance, the police department, sewage and garbage collection. Howes said the rate was the lowest the city has set since 1980.