Tomorrow night Coatesville council will take another look at this year's proposed budget. And like last year's budget, this one, too, relies on selling off city assets to make up for a revenue shortfall.

So far Coatesville has been operating under the 2007 budget, which automatically carried forward when council failed to approve a budget for 2008. The majority of council refused to vote for a budget which they claimed was received too late to allow for sufficient review.

The budget hearing for tomorrow is scheduled at 6:30 p.m. at City Hall. At that time, council members will be able to ask detailed questions about the budget.

The 2008 proposed budget that City Manager Harry Walker presented to council at it's last meeting in December calls for $10.3 million in general fund expenditures with no increase in taxes, despite expenditure exceeding revenues by some $1.8 million. Walker is banking on the sale of city-owned property to cover the difference. Walker has said the city has a $1.3 million agreement of sale with West Brandywine Township for the 66-acre Conti tract that the city previously purchased for a golf training center. The city is also planning to auction off several properties it and the Redevelopment Authority own that are not essential to revitalization plans.

Last year the city was forced to lay off eight employees when projected land sales expected to fill a $1.3 million budget shortfall failed to occur in a timely manner. The city did sell back land to the A Duie Pyle trucking for almost $700,000 that was purchased for the now defunct Iron Hawk Golf Course proposed during the administration of then-City Manger Paul Janssen.

Walker, in his budget message to council, warned the city can not save its ways out its budget dilemma. "The city must increase its real estate and income tax base," he said. "This can only be done through growth; not through further increase in tax rates.

Since the last countywide property reassessment, the city's tax base has remained relatively static, at about $234 million. Meanwhile, city personnel expenditures, mostly because collective bargaining agreements, continue to climb. "It continues to be a challenge to maintain a sustained level of public service and still meet the demands of a growing community," said Walker.

Real change in the city's financial future, warned Walker, will only come through growth. "The city must recognize and support a growth imperative. In short, we must continue to support a diverse variety of new additions to the city. We must promote Coatesville as a great place to work, live and recreate for young and old."

Meanwhile, the only component of the city's $700 million revitalization effort so heavily touted just three years ago to move forward is Don Pulver's plans to build a multi-level office building and hotel/restaurant complex near routes 82 and 340. Pulver is expected to break grown in April

Carl Chetty's plans to build a seven-story condominium at the North Third Avenue and East Lincoln Highway has stalled. Walker has said the project, Pennock Place, is not dead. Pennock Place was scheduled to be the first of seven condominium towers Chetty by Chetty.

Also, plans for Brandywine View, a 500 plus townhouse community north of Elmwood Gardens has stalled over a tax incentive plan for new homeowners.