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GREENSBORO — In a bleak economic landscape, it might be a bit of sunshine.

Next year’s city budget will have no new taxes. And the water rates — originally scheduled to go up — will stay the same.

The City Council approved the 2009-2010 budget Tuesday afternoon on a vote of 7 to 2. Councilwoman Mary Rakestraw and Councilman Mike Barber voted no to the budget.

The city tax rate will be 63.5 per $100 of home value. It will cost the owner of a $200,000 home $1,270 in city property taxes.

The budget also includes $100,000 to be spent to help get the city’s new day center for homeless residents off the ground and $73,000, added late Monday, for the police department to hire a fingerprint examiner.

The new fiscal year begins July 1.

It’s been a difficult budget year for the city, which has faced declining sales tax and fee revenues since late 2008.

The budget includes $3.2 million in savings from job cuts and eliminating merit pay for city staff.

There are also a variety of budget cuts across the city, including a plan to park the Reading Railroad library bus.

On Monday evening, council members rehashed their debate about the water and sewer rates.

City staff proposed increasing water rates by about 6 percent, at a cost of $2.40 a month for the average customer.

The council agreed two weeks ago to back the proposed increase.

But Councilwoman Trudy Wade, a proponent of keeping rates flat, pressed the staff for more information about how much money the water resources department has in savings.

On Monday, the water resources director, Allan Williams, offered the council members an alternative plan to take $2.1 million out of the department’s reserve for the year.

That measure would prevent the city from delaying planned upgrades to aging water and sewer lines as a way to save money.

Councilwoman Mary Rakestraw cast the fifth vote to ensure there would be no increase in the water rate, despite her reservations about tapping reserves.

The budget also includes more money for the Greensboro day center, which will provide a place for homeless residents to be during daytime hours.

Last year, the council provided some startup money for the project. Since then, a downtown building has been donated to house the center.

Volunteers hope it will open by fall 2009.

The new police department position was added into the budget at the request of Councilwoman T. Dianne Bellamy-Small.

Assistant Police Chief Anita Holder said the city is backlogged in processing fingerprints because of staffing problems.

Barber, who voted against the budget, said he wished more could have been cut.

“We could have dug deeper,” Barber said. “I think, in fact, we could have reduced the tax rate.”

Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com