Spending will decrease 2.1% under a city budget approved this week by the City Council.
Much of the savings in the $21.1-million plan is achieved by decreasing capital improvement projects, such as street repairs, Finance Director Richard Storey said.
Some capital projects remain in the 1998-99 budget, including an overhaul of storm drains and completion of Lincoln Avenue landscaping.
The new spending plan does not add projects or employees. City officials, still conscious of financial struggles of the early 1990s, said that they favor a conservative approach to spending.
"Since the recession a few years ago, we've cut back on personnel and we're not comfortable with hiring at this point," Storey said.