ST. JOHN | Town employees, angry that pay cuts are likely for 2009, packed the Town Council chambers Thursday night.

Several members of the council indicated they knew employee turnout would be big at the meeting because rumors about possible cuts were rampant among employees.

"I heard the same rumor change four ways in one day," Town Council President Michael Fryzel said.

Councilman Mark Barenie, who said he has received messages that could be construed as threats because of the rumors, apologized for the "ridiculous" rumors and then led a PowerPoint presentation showing an accurate look at what the town has planned for the upcoming budget.

The town needs to close the gap on an estimated $1.7 million deficit in its general fund. It needs to reduce expenses and increase revenue to do so, Barenie, a certified public accountant, explained.

Possible cuts include longevity, which is a yearly stipend for full-time St. John employees. The money is paid in addition to employee salary and is based on how long an employee has worked for the town.

For example, an employee working two years for the town has earned an extra $100 a year, and an employee working 25 years or more for the town has earned an extra $1,500 a year, according to the town's salary ordinance.

The draft of the 2009 budget does not allocate money to cover longevity, Town Manager Steve Kil said.

Cutting it will save the town about $42,000, Barenie said.

To balance the budget, the town would need to increase revenue by $750,000, a large portion of which could come from charging residents a garbage collection fee. The town also would need to use $537,000 in current reserves and make $413,000 in spending reductions.

St. John last week cut two town employees, ordered some take-home vehicles to be parked and eliminated a lot of town-issued cell phones. The changes took effect immediately on Friday.

Additional budget cuts could include a reduction in uniform allowances for police and firefighters, Kil said.