Rising costs and record requests are forcing Salt Lake County Mayor Peter Corroon to pinch spending for some agencies in his first crack at the 2006 budget.

County agencies made nearly $206 million in requests in general fund monies this year, an increase over this past year's general fund budget of $179 million. But Corroon said many of those agencies will not get new dollars because the numerous requests would eat away the general fund balance, dropping it to $9 million from its current perch at $40 million.

"Our theme is shared sacrifice within the county," Corroon said. "If people want something new, then they have to cut something else. It's time for us to look at priorities."

Dipping into the county's fund balances to some degree is inevitable, Corroon added, because of rising fuel costs, a surge in insurance premiums and several urgent county needs like meeting federal election requirements.

Corroon estimates the county will be shelling out $3 million to $4 million more on gas and utilities in 2006. A tentative budget projecting those rising costs and agency requests will be presented by the auditor's office today.

"There would be no way to leave fund balances the same unless you made horrific cuts or raised taxes," Corroon said. "We're going to be very conservative but try not to cut everything." The Republican contingent of the County Council urged Corroon in a letter last week not to shave down the healthy fund balances. In a response Monday, Corroon said he was glad to see the council members were in sync with his budget philosophy.

"A change from the failed budgetary policies of the past is on its way," Corroon wrote. "Our proposed budget for 2006 will take necessary steps to change the direction and put us on the right path."

That conservative approach, he continued, will keep the county's taxes steady while not jeopardizing the county's sterling bond rating.

Lance Brown, director of the auditor's budget office, said the county needs to keep its general fund balance at about 10 percent of its overall budget in order to hold on to its AAA bond rating. Although the budget requests would push the reserves below that point, Brown said he's not worried yet.

The time to start getting nervous, he said, is if Corroon allows the reserves to dip that low when he comes out with his budget proposal Nov. 1.

"It's just a prudent financial practice to have something set aside," Brown said. "If it's a planned draw down, that's one thing. But if it's year to year budgeting with no plan, then I'm concerned."