Lee Erdmann, the city’s Chief Administrative and Financial Officer briefed the council on finances first. Essentially, the city projects, based on revenue estimates and expected state aid to have a $40 million deficit. Erdmann told the council that he and others in the mayor’s administration had pared that down to about $16 million. That reduction came through department reduction and changes to health and pensions. It also assumed that there would be additional revenue from the trash fee.