AMERICAN FORK -- American Fork officials are brainstorming to find ways to balance the city's budget for the upcoming fiscal year, which begins in July.

City Council members and city staff are researching the potential cost savings from various measures to decide which to implement to reduce expenditures.

City budget officer Cathy Jensen outlined the current fiscal year's plan and the plan for July 2009 to June 2010 during a meeting Thursday. She also said the cutbacks made in the present fiscal year may be sufficient.

"If we can keep tight we might be OK," she said. Some of those measures have included a hiring freeze and cutbacks on nonessential spending.

"Our departments have done quite well in tightening their belts," Mayor Heber Thompson said. "They have not purchased capital equipment or hired people. I commend them."

The question is how long those policies should continue and whether others should be instituted.

After hours of discussion, the group identified possible money-saving ideas and decided to explore them. They included privatizing the ambulance department, video arraignments, an 80-hour work period for some departments (reduced from 84 hours), arranging for a flat rate for legal services and eliminating overtime by employees. The council also decided to do a cost analysis of closing the swimming pool or reducing its operating hours during the winter season.

Councilwoman Heidi Rodeback summed up the things the city would probably not consider.

"We have expressed interest in everything but a furlough for employees, salary cuts and layoffs," she said.

Jensen reluctantly offered to let the city reduce its fund balance by $350,000 or $400,000, although she expressed reservations.

"I strongly discourage this, especially in this economy," she said. "I want the city to survive. I don't want to drain it."

Maintaining that surplus money in the fund balance is regulated by state law. It must stay between 5 and 18 percent of a city's budget. It may be used for emergencies or other situations in which anticipated revenue is not received. If the entire $700,000 deficit the city is currently facing were covered by the fund balance, the fund would be reduced to 10 percent of the city budget. If $350,000 were covered by the fund balance, it would be at 12.5 percent. Jensen said she could live with that amount. The fund's balance is approximately $2.4 million.

Councilman Shirl LeBaron, himself an attorney, suggested the city consider paying flat fees for both its civil and criminal legal services.

"Both of those amounts are beyond premium," he said. "We are getting to the point where we need to do a cost analysis." Between the two firms, the suggested budget for 2009-10 was more than $400,000.

LeBaron said maybe the city could hire a firm for less money. He estimated there could be $100,000 savings and promised to explore the issue.

When the police and courts building was constructed, there was a plan to allow for prisoners to be arraigned via video, which would be a cost savings to the communities that would otherwise have to transport the prisoners to Provo for arraignment.

"The county invested significant money for the system," Jensen said. "[Chief of Police Lance Call] has to pay an average of 24 man-hours a week at time and a half taking prisoners down to the court." She said some of the judges were reluctant to use the video system.

As the council members were brainstorming, they declared that nothing should be considered a "sacred cow" and that all suggestions be considered.

Jensen said the city's current revenues were coming in as anticipated after the shortfall was brought into play, with one exception.

"The ambulance fees are about half as much as we expected," she said. The city had planned on implementing its paramedic program, which was expected to bring in additional revenue with patient transport from the hospital. Those have not materialized as anticipated.

Councilman Rick Storrs, a longtime ambulance department member and advocate, said he didn't want to see it happen, but the city could look at privatizing the ambulance service.

"I hate to bring it up," he said. "Budget-wise, it might be a good thing, however." He said it was likely that many of the members of the city's ambulance crews would be hired by a private company that would base its service in the city.

Jensen said if the privatization occurred the city would lose $500,000 to $600,000 in income, but would also reduce its expenditures by about $1 million.

She said the city would probably eliminate travel and conferences for employees, with the exception of those who need to certify for their work.

"They should try and do that within driving distance," LeBaron said.

Storrs said that employees can also do some of the training online.

Council members noted that some other communities have been offering incentives and bonuses for those who wish to retire early, thus decreasing the demands for salary, since some are not replaced.

Thompson said that may not help American Fork very much.

"We are not heavy, personnel-wise," he said.

Jensen said that the tentative budget cut most of the city's promotional items. Those included items such as the Easter egg hunt, Christmas party and Secretaries' Day.

She also said that most equipment purchases had been eliminated in the budget proposal.

Councilman Dale Gunther encouraged the others to make cuts to the budget, but to also exercise caution.

"Municipalities generally focus on a one-year budget," he said. "If we do that we make a serious mistake. I really think we need to look at things to determine what things are essential that we have to take care of over the next five years."

Thompson said he expected the budget cuts to be short-term and that the city would again have sufficient revenue to continue the programs of maintenance.

"If it is a year's deferral, it is OK," Rodeback said. "If it keeps going for 20 years, that would be different."