The Harlan City Council addressed budgetary concerns during a meeting on Monday.

The meeting was held at 124 S. Cumberland Avenue, which will soon be the new location of Harlan City Hall.

Mayor Danny Howard called on Harlan City Treasurer Charles Guyn for his report.

“I have a draft of the budget,” Guyn said. “We still have a deficit of about $113,000…If you leave depreciation in, we should be generating about $2 million and we’re only $1,688,000.”

Guyn pointed out there is an additional issue involved.

“There’s a problem. We have no cushion,” Guyn said. “Sewer costs — including depreciation — is $1.633 million, and we’re generating $778,000 worth of income. Depreciation on the sewer alone is $805,000 per year.”

Guyn also pointed out other areas of budgetary concern.

According to Guyn, it will be difficult to find cuts to make in the budget.

“I know people are going to ask ‘where can we cut,’” Guyn said. “I don’t have a good answer to that. Personally, I think we need to look at the revenue side as well as the expense side.”

Howard recommended a work session be scheduled for the council in order to address the issues with the budget.

Guyn then informed the council about some of the necessary expenses in the budget, including insurance and fuel costs.

“I have gone over (the budget) numerous times trying to come up with an answer,” Guyn said. “I don’t have a good answer, because it’s cut to the bone.”

Howard said he would schedule a work session as soon as possible.