On one hand, Morrisville anticipates a balanced budget with no tax increase, a pay increase for employees and above-average reserves.

On the other hand, the town plans to cut four positions, including one layoff, delay hiring needed firefighters and put off replacing 15 vehicles.

Town officials also warn that the town may need to raise taxes in fiscal year 2013 to maintain its level of service and infrastructure needs.

The different perspectives split the Morrisville council at a meeting last week as they argued about how the town should pitch the budget to residents.

Councilman Steve Diehl argues that the proposed budget has more strengths than weaknesses.

At the meeting, he criticized town staff for sending out a budget mailer to residents that appeared to be "unduly negative."

"The summary focuses on doom and gloom," Diehl said. "We have a lot to be proud of. I think it makes the impression that we are barely making it when we're not."

Morrisville's tax rate would remain at $366.50 per $100,000 in property value and the annual operating budget would be $22.2 million under the proposed budget.

The town's spending plan is expected to increase by $1.2 million from the current year. Employees would be eligible to get a 2.2 percent to 6.2 percent merit-based salary increase, which would cost the town about $317,000.

Councilwoman Margaret Broadwell said the town needed to be "realistic" with the information given to residents.

"We need to be honest, so they won't be surprised next year, when we suddenly say we don't have enough money set aside for streets," Broadwell said. "We need to be educating the public about what it really takes to run their local government."

Mayor Jackie Holcombe said the budget flier - an annual mailing that costs $3,000 to $4,000 - was balanced. "The question is: do we present a rosy picture right before we propose a tax increase in 12 months?" Holcombe said.

Fire response hurt

Two years from now, the town is expected to finance about $1.5 million to repair about three miles of roads. The staff has warned the council that they will not be able to maintain current levels of service next budget year or meet its infrastructure needs without a tax increase.

The budget also cautions the board that the current staffing levels are not enough. To respond to a house fire, it takes five units, and the town currently has enough staffing for three per shift.

This means the town must get assistance from neighboring jurisdictions for its initial response, said Fire Chief Todd Wright.

The fire department needs 19 firefighters on duty per shift, instead of the current 13. The town put off hiring the additional firefighters in the current budget and now proposes delaying it until 2013.

"It puts a heavier reliance on mutual aid for services," said Public Services Director Tony Chiotakis. "The situation that we are in is not unique to us. Other departments are faced with the same thing."

The town's response time is about six minutes from alarm to arrival. The out-of-town units, which come from Cary or Durham, take about 12 to 15 minutes, Wright said.

The time delay is partly caused by the various communications systems used by different departments, the chief said.

Even with these challenges, the department has managed to keep a good insurance rating, which affects homeowner and commercial business insurance rates.

With the additional staffing and purchase of two new fire trucks that serve five functions, the town's rating could improve, said fire officials.

Tim Gauss, who oversees the planning department, told the council that this budget was not easy on Morrisville staff.

"From our perspective, this is a status quo budget," he said. "I understand the times we are in, but in terms of moving the agenda forward, we don't think this is a real feel-good budget."