ANDERSON — Two solutions for the city of Anderson to overcome a projected budget deficit in the coming years include charging residents for trash pickup and laying off city workers.

City Council members and other city personnel met Monday to discuss options for a budget shortfall by 2010, a result of capped property taxes and the failure of the county to pass an additional 0.25 percent county option income tax.

“(Charging for trash pickup) is our second option,” city financial consultant Jim Steele said. “Our first was COIT and that didn’t work out. Third would be dramatic reduction in force, making cuts.”

If residents were charged for trash pickup, Steel proposed charging $8.75 a month in 2009 — 80 percent of the per person bill — to bring the city an extra $2.4 million. In 2010, he suggested charging $9.75 a person, bringing in $2.7 million.

The extra revenue would allow for a more than $3 million budget balance at the end of 2009 and a $5,747 balance in the general fund at the end of 2010, after the property tax cuts had taken effect. Without charging for pickup, the general fund would see a negative $5.1 million balance at the end of 2010.

Council members questioned the plan, saying it could lead to people not paying to have their trash removed and leaving it on their property instead.

“People have a hard enough time paying their utility bills,” Councilwoman Pam Jones said.

The city’s almost $2.9 million trash pickup contract with Bestway Disposal expires next year, and the $10.47 it pays per person could increase. Anderson has 23,000 residents who receive city trash pickup.

The other option would be to lay off city workers, as every 20 employees equals about $1 million in city spending, Controller Karen Carpenter said.

Layoffs could come from the fire and police departments, which already are operating at less than full capacity. However, Mayor Kris Ockomon has made public safety one of his top priorities, along with economic development and quality of life, three areas he will try to protect, Board of Works Chairman Greg Graham said.

“If we’re going to look at laying off people, we need to do it across the board,” Councilwoman Donna Davis said.

Councilman Rick Muir stressed the importance of taking action to the council, which was reluctant to raise fees or lay off workers.

“If we don’t lay off and we don’t increase fees, when’s Santa Claus going to come?” Muir said. “Nobody wants taxes, nobody wants fees increased, but we’re facing reality.”

Council members also offered suggestions like increasing city workers’ health care deductibles to save money on insurance or instituting a hiring freeze. The city has not looked at specific programs to cut if no action is taken, but Carpenter said she would try to cut more out of an already tightened city budget.

“The departments are pretty tight right now,” she said. “I don’t know where I can cut it.”