The idea of going to Kirkland City Hall on an average week day just to find out it is closed is a foreign idea for most. Paying more in property tax is unbearable for others. Having to wait three or four minutes longer for a fire engine can be a matter of life and death.

These are some of the possible results, as the city will have to trim more from a projected budget shortfall for 2009-2010 that has grown from $10 million to $13.1 million. City Manager Dave Ramsay and his staff briefed the Kirkland City Council on their recommendations to fill the gaps during the mid-biennium budget update on Thursday. The last council meeting of the year is Dec. 15 and the budget has to be adopted by Dec. 31.

“We’re all about solving problems,” said Ramsay. “Since August we are projecting an even bigger shortfall. Our assignment over the rest of the year is to balance the budget.”

Some of the changes staff proposed are to cut funding for the Kirkland Fire Department (KFD), use one-time “rainy day” funds and cut city staff hours or positions.

One of the biggest reasons for the shortfall was the failure of the private utility tax increase, which was projected to give the city an additional $2.2 million. The rest was based on a further decline of other revenues such as lagging utility tax receipts, business license revenue, development in Kirkland and the biggest, a continued decline in sales tax. Sales tax is projected to be down as much as 20 percent for 2009, a $3 million difference overall for the city.

“If these revenues don’t return we have to be prepared to reduce expenses,” said Ramsay. “If it doesn’t return you have to be prepared its gonna have to be major service level reductions.”

The KFD could be tagged with trying to correct an over expenditure of $272,000, thanks to overtime. The department has already cut some overtime hours. Currently, the department has 19 firefighters per shift and 27 per station. A minimum of 18 must be on duty. The department proposed to implement a rolling brownout, where firefighters would be shuffled around to meet standards for having enough bodies on duty. The department has to close a fire station when staffing resources fall below minimum levels. But the brownout will have a big impact on response times as out-of-district units will respond to 20 percent of calls, which would cost firefighters an estimated three to four minutes per call.

“This is not a budget exercise, this is an exercise in people’s life and people’s health,” said Councilmember Dave Asher.

But KFD officials noted that negotiations are also underway to try and stem the budget shortfall in other ways. However officials decide to make cuts, “there aren’t a lot of alternatives,” said Mayor James Lauinger. “Safety makes up such a large part of our budget.”

The issue of cutting city staff hours or even positions is one that will depend on current negotiations. The city is asking for a 3.4 percent wage reduction that would result in a general fund savings of $1.1 million. If the negotiations fail, the city will have to cut positions.

“This will be a service reduction,” said Councilmember Bob Sternoff. “And potential City Hall closures.”

Less staff means less time that the city will be open for business.

“It’s nine days that City Hall could be closed,” said Ramsay.

Staff also recommended to use “rainy day” funds and cash-on-hand, which would add up to $2.8 million to the budget.

“The reasons why we even have these reserves is because we have been careful to put money into reserves,” said Deputy Mayor Joan McBride. “It wasn’t that long ago that we had people banging on the doors saying don’t raise a tax, use those reserves.”

But other council members were quick to point out that when the “rainy day” funds are gone, the reserves could be difficult to replenish.

“I am concerned about digging that deep into those funds,” said Asher. “We have some fundamental challenges in the next couple of years if we don’t deal with it now.”

Dunlap said the city is basing the proposed budget on the assumption the economy has “hit the bottom. So we are planning for a flat 2009 and 2010. There are lots and lots of scenarios going forward with annexation, without annexation and so on.”

The proposed budget recommends an increase in property taxes by 1 percent, or $6 a year for a $500,000 home. This tax increase needs a supermajority council vote, or five votes, to pass. The law also states the council has to prove “substantial need” for the tax increase.

“This is not new. If ever anything is aptly named it is finding of substantial need. But we have taken it every year,” said McBride.

Because prices have fallen, the city would lose $275,000 without the increase and $149,000 is already included in the budget from assumed passage of the increase.

Another cost-cutting measure would be the deferral of $550,000 in capital projects.

Some programs will see cuts, such as funds for the Kirkland Performance Center, Seven Hills, KITH, the Kirkland Arts Center and cuts to programs that were included in July’s projected budget. Some of those cuts include the Juanita Bay Park Ranger program, Summer Concert Series, Senior Center special events, eliminate Mutt Mitts in parks, reduce lifeguard hours at beaches, eliminate the Volunteer Firefighter compensation, eliminate the two aid vehicles reserved for disaster response and Neighborhood Traffic Control Program funding, among many others.

“These are supposed to be things that we fund when we can,“ said Greenway. “I am sensitive to the fact of how much we are asking our employees to give up.”

Very few areas of the city budget has improved such as fuel costs and the cost of maintaing the jail. Other projected areas have improved, despite prior predictions.

“We had assumed that 2010 would go down even more with Costco opening the two new stores and Toyota of Kirkland moving out and none of those events seem to be happening,” said Dunlap.

Potential annexation transition costs and the cost of searching for a new city manager are not included in the budget and could change the outlook.