GUSTINE – City Hall is bracing for another lean year and another round of new, deeper budget cuts.

Council members took a close look at the city’s general fund at a budget workshop last Tuesday, where they were told that even with $200,000 in proposed cuts the city is still facing a deficit projected at $230,000 for the 2009-10 fiscal year.

“I would hope that we could come up with some additional revenues to offset that,” reflected City Manager Margaret Silveira. “It is pretty hard to image where we could cut that much more without reducing police services and park maintenance, the things that really hit our general fund.”

Pool operations and Y-Lead are two areas that will likely feel the budget pinch.

Silveira is recommending that Y-Lead’s budget be cut by more than $5,000 to a maximum of $25,000. The program will rely on fund-raising to help make up the difference.

Swimming pool hours and programs could also be restructured. Last year the pool incurred nearly $55,000 in operating expenses; Silveira’s goal is to reduce that amount to $30,000.

Those cuts wouldn’t begin to bridge the city’s gap between general fund revenues and expenses.

Silveira’s list of possible cuts also includes suspending the $45,000-a-year contract for tree-trimming services. “We would probably not do the routing tree-trimming, but would address any hazardous limbs with our own crews,” she noted.

The city could also suspend its practice of setting money aside for fire truck replacement or capital reserves until its budget outlook improves.

Other, more sweeping alternatives are being studied at a time when any and all ideas are on the table.

Silveira said the city is looking into the possibility of resuming management and operations of its water and wastewater systems, which are currently contracted out to a private firm.

The city is also looking at alternative energy options for public buildings and the pool.

An initial look at installing a solar unit at the Al Goman Community Center showed a 20-year cost recovery period, Silveira said, which would not make if feasible for the city to do on its own. “We’re looking for some stimulus money to see if we can get some help with that, and possibly at some of the other government buildings and the pool as well,” she noted.

That’s not the only idea under consideration which would represent a departure from the status quo.

The Police Department is in need of new headquarters, Silveira said, and is proposing that the city consider expanding the Goman Center to house local law enforcement.

“We’re looking into what the cost would be. It might be cheaper than any of the other alternatives we have looked at for a new police department,” the city manager commented. “Our goal would be to keep the same size for the event center, but to possibly create a dual use for the building. It may help cover some of our expenses for the center.

The city recently held a town hall meeting on its budget crisis.

A tax measure in some form is still being considered as a way to help bridge the city’s budget gap.

“From the community meeting we had, one of the things that came out was that people wanted to see the city cut, but that they also would be willing to help offset (the budget shortfall) with some sort of sales tax or utility tax,” Silveira commented. “In order to run the community without a big change in services or the events that we enjoy we need an increase in revenues. Otherwise there is no way to cut without reducing services.”

No firm decisions were reached at the workshop. The city has until the end of June to adopt its budget for the coming fiscal year, which begins July 1.