The Ironton City Council Finance Committee asked Finance Director Kristen Martin to prepare a budget that cuts 20 percent from both the general and enterprise funds.

This request came after an hour and a half executive session Monday night.

The committee also agreed to ask the city solicitors, Mack and Bob Anderson, for their opinion on whether the city council can simply not appropriate money for police dispatch and an opinion on whether changes can be made in the tax code to allow for the inclusion of pensions, IRA distributions and even lottery winnings.

Martin said after the meeting that the city’s general fund budget last year was approximately $5.4 million. Trimming 20 percent would amount to over $1 million.

“They’ve not offered any solutions on how to grow revenue,” Martin said. “It’s going to be devastating to the general fund budget.”

The issue of eliminating police dispatch has been discussed on and off for several years.

Police Chief Jim Carey said last month during a meeting with the finance committee that eliminating dispatch would save anywhere from $130,000- $175,000 a year. City officials have met with both the Lawrence County Commission and Lawrence County Sheriff Jeff Lawless to determine if either the county’s 911 center or Lawless’ dispatchers could assume the duties for his department. Both entities want money from the city for the additional operating costs and, in the case of the 911 center, additional equipment costs.

Council Chairman Mike Lutz requested that Martin ask Anderson and Anderson, “What the result would be” if the city allotted no money for dispatching.

The idea of adding pensions and other non-earnings income to the tax code has been a much discussed topic lately, with city officials and private citizens pointing out that only 15 percent of city residents bear the burden of the payroll tax.

The next finance committee meeting will be 5 p.m. Feb. 23, prior to the regular council meeting.

A city budget for 2012 must be approved by March 31.