York City Council members voted down the proposed 2010-11 budget 4-3 Tuesday night in a dispute over a proposed 10 percent increase in the water rate.The proposed $6,331,006 spending plan is approximately 1 percent less than the last year's budget as City Manager Charles Helms said projected revenues are down. The plan would include a $10 increase in recreation fees as well as a 10 percent increase in the city's water rate. According to Helms in addition to the spending cuts in state programs the city of York lost town large commercial water customers over the past year, Hella Lighting and Whitesides Laundry, which delivered a substantial blow to the city's projected revenue.Cuts have been made to nearly every area of the budget, but Helms warned that further spending cuts could lead to deterioration in the services the city provides, such as scaling back overtime pay for city employees or possibly reducing garbage or leaf pickups. Other potential cuts mentioned include cutting money slated for roll-out garbage bin and commercial dumpster replacement and money intended for maintenance on the city's only claw bucket CAT loader - used for debris and leaf pickups."If people's trash isn't being picked up you'll hear about," Councilman Charles Johnson said.However council members Denise Lowry and Mark Boley led the push against the proposed budget saying there must be a way to get by without raising the water fee this year."We've all had to cut back and then cut back some more," Boley said. "I don't believe the people of York are going to find it unacceptable to see some cut in the level of service. We are all dealing with the economy."One increase in the budget that no one wanted to cut was a 3 percent raise for city employees and a bonus program offering up to $200.Helms defended the raises saying city employees are struggling with the same economic realities as residents and that most of the raise is offset by increasing insurance costs on the employees.Unable to approve the budget on second read Tuesday, the council scheduled a special meeting for 6 p.m. Monday in the Council Chamber at City Hall. State law requires the city approve a balanced budget by the end of September, but the document has to be submitted to York County no later than Wednesday, Sept. 15, according to City Attorney Bill Brice.