The numbers drafted for the 2003­04 operating budget are approximately $1 million less than the previous fiscal year. That means that the city will have to be very careful with how it allocates funds, according to Jesse Baloca, Saratoga's director of administrative services.

Although the state set a maximum allowance of $23,694,794 for Saratoga, city officials determined that a budget of a little over $18 million would be sufficient to carry through to the next fiscal year with a projection of approximately $430,000 remaining. The city was unable to meet the state's maximum due to declining revenues.

Baloca said that one of the major factors in determining the budget was a proposal made by Gov. Gray Davis in December 2002 to take away $590,000 in vehicle licensing fees to offset the state deficit. However, that proposal was rejected by the Senate, adding some extra cash to the city's spending pot.

To account for any potential revenues being taken away in the future, the city had to make some tough decisions and major changes that will affect many employees and city operations. The changes include reducing expenditures on equipment such as computers and new city-owned vehicles, putting a hiring freeze on vacant positions in the human resources and the community development departments, consolidating two positions in the city manager's office into one and reducing contract services. For example, street-sweeping services will be reduced from once a week to once a month. In addition, there will no longer be a motorcycle officer patrolling traffic.

These cutbacks will save the city approximately $945,000, which will compensate for the decline in revenues and will also help circumvent the need to dip into reserves.

"We had to make cuts," said Baloca. "Otherwise we would have been in deficit."

Baloca said the city is trying to "be conservative" with spending, despite economists' predictions of a rapid economic recovery following the end of the war with Iraq.

"We'll agree when we see it," he said.

So far, he said, he hasn't seen much convincing evidence of improvement. According to studies and reports, the unemployment and new job growth rates have remained unchanged.

As stated in a report written by City Manager Dave Anderson, "the Silicon Valley area suffers as the region with the highest unemployment rate in California, which continues to be higher than the national average. The drag on the local economy resulted in another decline of 10 percent in sales tax revenues, which had already experienced an 11 percent decline from the previous fiscal year."

Deputy Steve Grisenti was one affected by the cut. He worked as a traffic officer in Saratoga for four years, catching speeders on his motorcycle. He will still be an officer, but one without a specific beat and his much-loved motorcycle. Under his new position, he will be filling in for other officers on vacation and will have to cover different cities.

Grisenti said he was disappointed by the change and will miss riding the motorcycle.

"I'm hoping to go back to my regular beat as a motorcycle traffic officer in the future," he said.

According to records, he has ticketed 168 traffic violators at Saratoga High School alone within the past three years. He said he's noticed the number of speeders declining each year.

In conjunction with the tight budget, the Saratoga Employee Association had to revise its Memorandum of Understanding, an agreement that is set between the association and the city.

Under the revised agreement, no raises will be given to any of the city employees until June 2004, and the time limit to use comp time will be extended from 90 days to 180. In addition, a 9/80 work schedule has been set in place, which means that employees will have to work nine-hour days, giving them every other Friday off.

City employees do not have an option, but council members do. Vice Mayor Ann Waltonsmith said she will turn in her monthly stipends of $250 to the city to compensate for the adjustments.

"It's my way of giving back to the city and showing my appreciation to the management staff," she said. "It also builds a sense of teamwork and understanding."

Starting July 7, city hall will be open from 7:30 a.m. to 5 p.m. and closed every other Friday. For a new schedule, go to the city's website at http://www.saratoga.ca.us.