The Langley City Council unanimously approved a $3.8 million budget for 2009 at its meeting Monday night, and next year’s spending plan includes a 1-percent increase in property taxes and higher rates for the city’s sewer and water customers.

During a workshop before the regular council meeting, City Councilman Robert Gilman said rates needed to be increased due to the upward creep of expenses.

“It may not be popular, but it’s responsible,” Gilman said.

The city’s spending plan for next year will be almost a million dollars — $984,849 — below the 2008 budget.

Langley officials have said the overall drop of 20 percent in the budget is because several street projects have been finished. The city is also closing its harbor fund, which won’t be needed once the city hands over the Langley Marina to the Port of South Whidbey in January.

According to the city’s 2009 budget, the general fund — the pot of money that pays for parks, planning, police, municipal court costs and other general government activities — will shrink from this year’s budget to $1,509,751 next year.

City officials said the budget could be tweaked in the months to come if needed.

Gilman stressed the budget was not “locked in stone.”

“This is not a static document,” agreed Langley Clerk-Treasurer Debbie Mahler. “It is changeable.”

Langley resident Don Rowan raised concern about the 2009 budget, however. He reminded the council that in 2004, the mayor and city council went without pay because of the city’s poor financial position. Capital projects were put on the back burner.

“Langley was tight as a drum on the expenses,” Rowan said.

Voters approved a property tax increase to help shore up Langley’s financial footing.

“That was only four years ago,” Rowan said. He warned city officials not to be too optimistic on expected revenues, noting the budget deficits faced by the state and Island County.

“Sales taxes, fees — don’t count on it. Hopefully, you’ve taken that into consideration,” Rowan said.

Rowan also noted the rise in the budget for the executive branch.

Council members previously approved a raise for Mayor Paul Samuelson; the mayor’s total compensation package, including benefits, is $70,127 in next year’s budget, up from $37,794 in 2007. In 2009, the executive budget will total $104,713.

“We’re still about the same population,” Rowan said. “Keep that in mind.”

“I’m not saying, don’t spend money. But as you start looking at a budget, like in the city of Langley, let’s look at the future. The indicators are not good. They are very poor,” he said. “This will catch up with us. What the county is facing is going to happen here.”

Council members defended the pay raise. Councilwoman Rene Neff said Samuelson has helped save the city $200,000 in restructuring changes he has made since becoming mayor, in legal areas and elsewhere.

Gilman said it was important that the city have a team ready to step in immediately when help is needed during the rough times ahead.

“We are going into white water,” he said, noting that higher pay was a way to protect Samuelson as a resource for the city.

“I don’t want him to burn out,” Gilman said.

Rowan, however, said the mayor’s job has grown to full-time from part-time, but Langley remains a small city.

“I don’t want this to be about Paul, because we’re friends, and he carries a razor sometimes,” Rowan joked. The mayor also is a barber.

“We considered this very, very carefully,” said Councilman Bob Waterman. “We looked at the job that had been done.”

Beyond approving the 2009 budget, the council gave an initial, unanimous approval to an increase in sewer rates.Council members also approved a 3.92 percent cost-of-living increase for city employees, and additional merit pay increases that range from 1 to 3 percent.