FAIRBANKS — Fairbanks city Mayor Terry Strle has proposed a fiscal 2010 budget that includes six layoffs and the reduction of the discretionary bed tax contribution to local nonprofit organizations as a way to deal with a projected revenue drop of nearly $1 million next year.

“I’m certainly not the type of leader that would budget for things we don’t have,” Strle said Friday afternoon. “I looked at the numbers conservatively. We’re working with exactly what we have.”

It came as no surprise, Strle said, that projected 2010 revenues will be insufficient to maintain the city’s expenditures.

The city’s general fund revenue was a little more than $37 million in 2008. The 2010 revenues are estimated to be about $29 million, showing an $8.1 million decrease in revenue in just two years.

The decline led Strle to question the city’s ability to give out discretionary funds to local organizations.

“It’s unfortunate, but I can’t see funding the bed tax organizations if we’re having to eliminate positions here at the city,” she said.

Despite the six layoffs, Strle clarified in a letter to the City Council that she and her staff made an effort to avoid making any cuts among front line public services such as police, fire and public works.

City departments almost across the board will see budget cuts next year, but grants will help spare the building department, police and fire department from reductions.

City officials are relying on more than $1 million in grant money to maintain about nine positions in the police department and six positions in the engineering department.

Strle has proposed to hire one additional dispatcher to help alleviate overtime costs. She said that adding an additional employee would cost less than paying overtime to the current staff.

“I think the city has run a tight ship for a very long time, and it’s an unfortunate fact that we have to make something tighter that was already tight,” she said.

Strle’s budget is only a proposal. The final budget lies in the hands of the council.

Councilwoman Vivian Stiver said she was anticipating some cuts in this year’s budget but that she has concerns.

“I want to be sure we’re not seeing an overstated reaction to the failure of the sales tax measure” in the Oct. 6 election, Stiver said. “I believe there’s so much in that budget that we have to watch out for.”

Strle, in her letter to the council, stated her 2010 budget estimate was balanced, within the boundaries of the tax cap and was prepared using conservative revenue statements.