OTTUMWA, IOWA -- The City of Ottumwa has cut over $700,000 from the 2010-2011 fiscal budget, but pay raises are factored in. 

Last week, the Wapello County Board of Supervisors voted against any pay increase for county employees. However, city employees could see a 2.75 percent increase in their salary due to union contracts, which mandate this raise. Non-union members are also likely to have the same pay increase.

Ottumwa City Administrator Joe Helfenberger said that the city has, and will continue to look at every option for saving money.

"Obviously if things got extremely dire, we would have to look at opening up contracts. But at this point, we have a budget that can meet the services, that is a reduction of 1.6 percent over the prior budget that we are proposing for this next fiscal year," Administrator Helfenberger said.

He added that "pretty much everything is on the table as far as ways to make the city run more efficiently.

"And the budget itself is a cap on spending," Helfenberger said. "That doesn't mean we can't spend less if we find any ways to save. We intend to do this on a continuous basis, to try to find more ways to save money; better ways and more efficient and more effective ways to provide services."

There will be a public hearing on the budget, and that will take place on Tuesday, March 2nd, at 6:30 PM at the Ottumwa City Hall. 

"We look at every option, though," Administrator Helfenberger said. "We look at the option of no increase and depending on what happens with the state in the future, and the economic condition and everything, we can't guarantee that there would not be any increases or decreases if the situation warranted it."