Despite the likely decrease in service level, the city council is determined to bring the Fourth of July fireworks back.

"The Fourth of July fireworks is more than just fireworks," said Mayor Sandy James at a goal-setting session at the Blackberry Farm retreat center. "It is a tradition."

The city council was blasted last year for canceling the popular pyrotechnic display. They were called off because its venue, De Anza College, was undergoing the Measure E construction.

Some residents accused the city council of being unpatriotic and suspected the city of using the saved money to support some ethnic celebrations instead of Independence Day, "a 100 percent American holiday," as one longtime resident said.

Bringing the fireworks back may be a politically correct thing to do for some but definitely not a cheap one.

The second best location for the display would be Cupertino High School. Shooting off fireworks for 20 minutes at the high school would cost the city $55,000. Since the high school is much smaller than De Anza, residents could only watch the fireworks from a distance.

The city council directed the parks and recreation staff to look into the possibility of having fireworks at the parking lot at Vallco Fashion Park or Memorial Park.

"Money shouldn't be an issue. We can always ask for sponsorship," said Vice Mayor Patrick Kwok. "The fireworks is one of the biggest community events. It brings people together."

But the council must make cuts in other places.

The public works department hasn't filled five positions, which accounts for 10 percent of its maintenance crew. Although serving the seniors has been one of the city's top priorities, the city will not fill the social worker position emptied by Jacklyn Baddeley, who retired and moved back to the East Coast around Christmas time.

"These positions won't be filled until we have miracles in Sacramento," City Manager David Knapp said.

As Gov. Arnold Schwarzenegger terminated an increase in vehicle licensing fees, he also cut $800,000 from Cupertino's already trim $30 million budget.

The city has been extremely fiscally conservative and able to avoid layoffs since the economy slowed down two years ago. "We are extremely lean compared with cities of our size and we are able to keep the cuts invisible to the public," Knapp said.

But the cuts might not remain invisible anymore as the city braces for the third year of economic downturn and keeps losing money in its two major income sources, sales and hotel taxes.

The city is projecting a $1.6 million loss in its biggest category of sales taxes, business to business taxes, according to finance manager Carol Augustine. The category encompasses such technology companies as Apple Computers.

City Manager Knapp has asked each department to come up with a 10 percent cut and will present a list of proposed budget cuts to the city council for approval in February.

Programs that may get the ax include such community events as Christmas Tree Lighting and the annual free day at Blackberry Farm. Cultural events like the Cherry Blossom Festival may stop enjoying a fee waiver.

"We would have to limit out-of-the-pocket money," Knapp said.