CHRISTIANSBURG -- The town council will take a hard look this month at the budget for its upcoming fiscal year, but the process of approving a plan should be more transparent than in the past.

Ten residents attended Tuesday's finance committee meeting, the first that has been open to the public since the town's violation of Virginia's Freedom of Information Act regarding open meetings was reported in April.

And Mayor Richard Ballengee announced another first at Tuesday's meeting. The council has set its first-ever budget workshop at 3 p.m. Wednesday in Christiansburg Town Hall. That, too, is an open meeting.

Council members will have much to consider with regard to this year's budget. Town Manager Lance Terpenny presented a tentative proposal Tuesday, a 31-page budget detailing expected tax revenue and appropriations for each town department.

"As my memo reflects, we've cut practically all new projects, capital equipment and personnel requests," he said at the onset. "Operations are up and revenues are down. We're no longer in a recession. We're heading for a real depression."

Terpenny's initial proposal is a $41 million budget, up from last year's $39 million. The town manager noted that the proposal reflects no increases in any taxes and only those capital projects to which the town already has made a commitment. It also reflects a 3 percent cost of living increase for all full-time permanent employees, as well as the town council, council clerk and town attorneys.

Still, Terpenny noted, the $41 million proposal he called a "bare-bones budget" has a $2.6 million shortfall in revenue to fund basics.

"The demand for services from the town increases every year," noted committee member and Councilman Mike Barber. "At some point in time, we'll have to look at a real estate tax increase. It won't be in '08-'09, but at some point we'll have to look at it."

During last year's budget discussions, the council balked at the suggestion of raising real estate taxes, citing Montgomery County's high reassessments on property values. With the county recently raising real estate taxes 8 cents to 71 cents for every $100 of assessed property, the council has again indicated a desire to freeze rates in the town.

On Tuesday, committee members batted around ideas of raising taxes for eating out or staying in town hotels, as well as increasing fees for garbage collection, to meet the shortage town administrators calculated.

Councilman Ernie Wade, who does not serve on the committee but was in the audience, said he would have to analyze the proposed budget more carefully.

"I want to know what the big drivers are that are causing the $2.6 million shortfall," he said. "I guess I'm questioning this $2.6 million figure."