By STEVE EIGHINGER

Herald-Whig Staff Writer

HANNIBAL, Mo. -- City Manager Jeff LaGarce and council members Jim Behymer and Barry Louderman will form a financial task force to examine all facets of city spending, with a goal of making cuts.

La-Garce's suggestion for such action was met approvingly Tuesday night by the Hannibal City Council. Behymer and Louderman volunteered to work with LaGarce on the project.

"A lot of private organizations have gone through this, and we need to go through this" LaGarce said. "Staff has been monitoring revenues and expenses very closely, particularly in light of this recession."

LaGarce said revenues and receipts are causing concern.

"Though only the first three months of the year are in, the city's top revenue source, sales tax, is down 2 percent from this point last year," he said. "We are further aware that property taxes will increase a mere $8,600 in 2009."

Sales and property taxes are the primary funding avenues for city operations.

LaGarce said "the entire city structure" will be explored and examined to seek "productive operational modifications."

"Everything from consolidating mowing operations, in-house demolition, size of vehicle fleets, bulk purchasing, isolating repetitive functions, etc., will be considered," he said.

In other matters, council:

* Said it would support Millennia Housing Development's bid for a 9 percent low-income tax credit application to the Missouri Housing Development Commission. Millennia wants to undertake a $4.43 million renovation of the 76-unit Hannibal Manor Apartments with its affiliate, American Preservation Builders, of Cleveland.

* Approved a $7,500 fee for engineering services with Klingner and Associates of Quincy, Ill., to help correct stormwater drainage problems on Commanche Drive.

* Approved a $48,900 bid from Layneco Construction Services of O'Fallon for renovation of the Hannibal Fire Department administrative offices at 2333 Palmyra Road.

"This will consist of remodeling from floor to ceiling in the office area of the building, along with making the building more energy-efficient with smaller windows and more insulation throughout," Fire Chief Tim Carter said.

* Approved a request from the Jaycees to hold the group's annual Christmas parade from 5:30 to 6:45 p.m. Dec. 5. The parade will start at 10th and Broadway and wind up at Main and Hill.

-- seighinger@whig.com/221-3377