Michele Braucht, administrative services director for the city, presented the operating budget at a council meeting on May 4. She talked about adopting a "new normal," a term used by City Manager Dave Anderson to describe an end to recessionary budgeting practices while still operating under the constraints of a limited budget.

The cuts suggested in the budget were mostly decided at two special study sessions in March. At the sessions, council members chose city services that must be provided, services that should be provided and services they would like to provide.

The biggest chunk of the cuts is in the form of reduction of a supplemental traffic officer and the school resource officer from the sheriff's contract with the city. Together they amount to $383,000. Other items being cut include the city's economic development program, which cost $85,000, and the teen after-school program, which costs about $67,000.

Braucht said at the meeting that the city's contract with the Santa Clara County Sheriff's Department still amounts to 35 percent of the city's budget.

At the meeting, Beverly Tucker, a representative of the Saratoga Employees Association, said that the city was paying the cost of high staff turnover.

"We are with you, but things are very difficult. It is not a fun place to work; the morale is extremely low," she said.

Tucker, who works for the city's recreation department, said that the city offices are known for fast and friendly service but customer service has been suffering because of the high staff turnover. As many as 14 staff members have left the city's employment in the last year.

Sheila Arthur, the interim executive director of the Saratoga Chamber of Commerce, pleaded with the council to continue the in-kind funding for Celebrate Saratoga!

"The income from Celebrate keeps the Chamber going. The city also benefits from increased sales tax from the event," said Arthur. The city-provided services on the day of the event amount to $13,000.

Councilwoman Ann Waltonsmith said that she wanted to make it clear that the city did not get any money from Celebrate Saratoga! "Why should we fund a party when we are cutting so many essential services?" she said.

Vice Mayor Norman Kline said that every neighboring city has three or four events like Celebrate. "There is an indirect benefit to the city from this," he said.

In the end, the council decided to approve $9,000 in services for Celebrate Saratoga! The Chamber will have to arrange for the remaining $4,000.