The City Council this week approved its 1993-94 fiscal year budget, which includes a salary freeze and benefit reductions for all city employees, a hiring freeze in the Police Department and a reduction of Fire Department personnel from 74 to 68.
"This is the first time in five fiscal years we have recommended a reduction in personnel, services and benefits," said City Manager Jerry Kenny. "We did this with a heavy heart, knowing the city already has the fewest staff per capita of any city in Orange County."
The city must come to an agreement with employee unions before imposing benefit reductions.
The budget includes elimination of one administrative position and no new police cars for the third straight year.
The city is facing a $4-million shortfall because of a $2.6-million revenue loss and an increase in expenses, Finance Director Brian Mayhew said.
Mayhew attributed the lost revenue partly to the weak economy but mostly to the state, which has been diverting tax revenue to balance its own budget, he said.