Northwood City Council last night unanimously approved a 2010 budget of $4.5 million, which is about 13 percent less than the 2009 budget.
To balance the budget, the city has laid off three full-time employees, including a police officer, and two part-time employees, city administrator Patricia Bacon said.
For 2009, the city was able to cut $400,000 in expenses without layoffs.
Through September, income tax collections were $484,020 lower than 2008, in part because auto parts plants shut down for several months.
In related matters, council gave a second reading to an ordinance approving a health-care contract for nonunion employees. The coverage through Medical Mutual of Ohio is expected to save the city money.
Council gave a first reading to an ordinance discontinuing its police K-9 unit, also a money-saving move.The dog will remain with the officer to which it was assigned and his family, Mrs. Bacon said.