The era of big government at City Hall is over, ushered to a close by the global financial crisis and a weakened Alexandria real-estate market. As City Manager Jim Hartmann presented his proposed $524.3-million budget for fiscal year 2010, a somber tone fell over the City Council chamber as the elected leaders considered the potential consequences of reducing city services and eliminating 121 positions. Although the vast majority of eliminated jobs are vacant, 30 current city employees will be laid off unless Hartmann can find other positions they are qualified for that remained fully funded.

"We will try to match those 30 people to positions that have not been eliminated," said Hartmann, adding this budget is the most difficult of his career. "The fortunate thing is that we instituted a soft hiring freeze earlier in the year."

Services familiar to city taxpayers will be reduced or eliminated altogether. Lee and Colasanto pools will not open in fiscal year 2010, saving about $43,000. Security guards at libraries will be eliminated, saving about $100,000. The rush-hour police presence at seven key intersections will be abolished, saving $100,000. The city’s "FYI Alexandria" will not be mailed to every home in the city, cutting about $46,000 from the bottom line.

"No one can see the light at the end of the tunnel," said Mayor Bill Euille after Hartmann concluded his presentation to City Council members Tuesday night. "We’ve never really been in this position before, but we’re going to get through this together."

MANY OF THE CITY’S services will be cut back as city employees take on larger job descriptions, creating slower response times in many areas of the government. Several therapist positions will be eliminated, leading to increased caseloads and longer waiting times. Emergency day care for parents of children who live in shelters will be will be scaled back about $85,000, which could lead to longer shelter stays as a result of reduced job searching time for parents. About $79,000 will be removed from the city’s "emergency shelter fund," which provides crisis assistance for rent, utility payments, transportation, medical needs and burial services for low-income households.

"Every cut has a face, and every reduction in services will have consequences," said Councilman Justin Wilson. "And it’s not just the city employees. It’s their spouses, their families and their communities."

Custodial service will be cut by $50,000, leading to a decline in the overall cleanliness at City Hall and the courthouse. The city’s security program for information technology will be reduced by $10,000, creating an increased risk that the city’s security posture could be compromised. Lawns will be mowed less frequently to save $151,000, and the budget for flowers will be cut $200,000.

"What we have is a budget that spreads the pain," said Councilman Ludwig Gaines. "But it also looks out for the poor and those who need help the most."

FOR THE FIRST time since 1994, the city’s tax base will decline in 2009. City officials estimate that the tax base will decline 2 percent in 2009 and 5 percent in 2010. The overall assessed value of real property in Alexandria decreased by about $724 million this year, with the average assessed value for residential properties decreasing from $500,234 in 2008 to $476,490 in 2009. Hartmann’s proposal would maintain the status quo for the average residential tax bill, which is $4,226.

"I would expect to see some kind of stabilization by 2011," said Cynthia A. Smith-Page, director of the Department of Real Estate Assessments. "We think the residential market will recover by then."

Over the next few months, City Council members will engage in a series of work-sessions and public hearings on the budget, culminating in a final adoption date of April 27.