In the aftermath of the failure of the utility tax measure in November, the city council asked the finance commission for advice and help in determining the parameters for a minimum services city.

The issue came up for discussion again at a joint meeting with the finance commission on Feb. 2.

"It's going to be challenging and it's going to be exciting," said Finance Commissioner Jim Hughes referring to the challenges in preparing the budget for the next financial year.

At the meeting, the finance commissioners said that they had divided city services into three categories—must provide, should provide and would like to provide.

The services identified in the must provide area include police services, maintenance of streets and sewers, animal control, development review and regulations, and all other federal and state mandated programs.

The next category includes code enforcement, school resource officers and the minimal maintenance of parks and orchards.

The last category, and the one most susceptible to cuts, include the neighborhood traffic management program, school crossing guards, arts programs, Web-based information, and financial and staff support to outside agencies like the Chamber of Commerce and Hakone Gardens.

Mayor Kathleen King said that she was bracing for the year ahead. "Anytime we have cuts, we are going to hear from people," she said.

Councilwoman Ann Waltonsmith inquired about the city's ability to spend from the general emergency fund.

"When you do spend from reserves, you should have a plan for getting the money back," said Alex Tennant, chairman of the finance commission.

Commissioner Hughes suggested that the city should calculate the maximum amount that could be taken away by the state and always keep that amount as reserve.

In a memorandum submitted by the finance commission to the city council during the meeting, it was suggested that fees should be charged whenever possible from those residents who benefit from a service, especially when the service is not in the must provide category.

At the meeting, there was talk of slicing and dicing so that the city spent less money than they brought in.

"Let us think that we are starting up a new city and only do what we can afford," said Finance Commissioner Dick Allen.

City Manager Dave Anderson said that there was a need to keep employees motivated and hire new people to replace those who had left. "Otherwise the mechanics of government will fall apart," he said.