The city has begun working on the 2014-2015 financial plan, and has received requests from department heads, with whom Scherer will meet next week.

Of concern are revenue projections from a variety of sources, he said. “I'm not optimistic about revenue projections. I'm predicting a tight fiscal budget.”

The city manager said following the meeting, “Across the board some of the sources are indicating no major increases.”

Scherer said, for instance, discussions in the legislature are leaning towards limiting business privilege licenses to $100. “That could be a problem. Overall it's lean.”

Capital needs in the city will be closely examined, he said. “Capital needs are what we are taking a hard look at. We still have major storm water repairs and some facilities needs.”

The Jo Story Senior Center, he said, needs a new boiler. With the hard winter, there are critical street and road repairs which will have to be prioritized, he said.

Department heads submitted lean budget requests. “The department heads did a great job as usual and were frugal with the money we give them.”

In the initial stages of the budget process, there is no talk yet of a tax increase, which was held in check for this fiscal year's plan. “I'm hoping to do the same this year,” Scherer said.