The housing slump came crisply into focus in Eagle Mountain on Friday as council members began working to balance the fiscal 2009 budget.

"Overestimate expenses, underestimate revenue -- that is always the way to do it," Mayor Heather Jackson told council members.

The council met on Friday evening to begin to balance the city's $8.9 million projected general fund budget for fiscal 2009. The job started with a $300,000 challenge.

"The budget is not balanced at this point," said city manager John Hendrickson. "It is your choice how to do that. You can make reductions in expenditures or you are going to have to look for ways to raise revenues about $300,000."

It is possible that, with careful planning, the city's current 2008 budget will come in a quarter to a half-million dollars under, allowing the city to carry over enough money from the 2008 year to solve the problem, he said.

When council members wanted to know more about a potential windfall, Hendrickson laughed.

"You absolutely won't know until we get all the bills out" for fiscal 2008, which ends in June, he said.

The good news for fiscal 2009 is that residents are being asked for no tax increases, Hendrickson said. Council and staff budget negotiations are expected to last several more weeks in Eagle Mountain. The budget must be set before the fiscal year begins on July 1.

The $8.9 million estimate is based on 300 residential building permits in fiscal 2009, one-fifth of the actual number from two years ago, Hendrickson said. While there is no way to know for sure what the housing market -- which fills city coffers with impact fees -- will do, the city feels 300 is a good estimate.

Councilman Nathan Ochsenhirt said there are many homes for sale in the city and he was not sure the 300 permit prediction was a good one.

But Mayor Jackson said commercial building, none of which is predicted in the budget, could help boost low numbers, and some builders are still selling homes.

The housing outlook changes from bleak to optimistic "depending on who you ask," said Hendrickson.

Considering a $30,000 increase requested by the city library, librarian Michele Graves minced no words.

"Eight dollars an hour is ridiculous," she said of the pay her four part-time staffers receive.

The increase is needed to cover increasing demands for services, she said.

"We are circulating 80,000 [books and other media] a year and we have under 30,000 in the library so that is crazy," she said. "Every time I give the stats to the state they call and say 'Are you sure this is right?' We are heavily used here."

She also said she would like to give her part-time staff, the only paid staff the library has, pay raises, more hours and benefits.

"I have a very good staff and my concern is that if we don't increase pay or offer benefits, it will be like fast food and we will lose staff because they will have to go somewhere else to get what they need," she said.

"When we have good people, retention is important," said Councilman David Lifferth.

Hendrickson said paying benefits for four part-time librarians would cost the city $40,000 to $50,000 a year.

Noting that the city would be required by law to pay benefits to library staff if their hours were increased to 20 or more per week, Councilman Nathan Ochsenhirt suggested increasing just the pay of the part-time staff.

"It's not that we don't want to pay benefits, it just opens up Pandora's box," he said.

In the end, council members agreed to consider a pay raise and more hours, putting the request for benefits on a "wish list."