Austerity Continues to Loom on City’s Fiscal Horizon : Budget: Tentative draft by City Council projects employee reductions and paring of services and event sponsorships in a $315-million spending plan.

As many as 15 city employees could lose their jobs, services would be pared by $3 million and sponsorship of local events may be curtailed as part of an austere budget tentatively drafted Tuesday by the City Council.

After five hours of dissecting practically line by line the preliminary $315-million budget, council members managed to end up with an expected surplus of $500,000 in next year’s projected spending plan, to be adopted next Tuesday.

“This is probably the toughest budget session we have gone through in 10 years,” Mayor Larry Zarian said. “We are going to make some people unhappy, but that’s the way it is.”

Details about who could lose their jobs have not been announced.

Police, fire and other public safety units will basically remain intact and there will be no significant new taxes. But parks, library, street maintenance and building inspection services will be reduced to balance the $82.5-million general fund budget.

Despite the cuts, the city was given a slight reprieve when the Legislature approved a state budget this week. City officials had expected to lose $3.2 million in state revenues as its share of a $2.6-billion shift in property taxes for education from cities and counties.

But the loss under the state plan, which must be approved by Gov. Pete Wilson, is now projected at $2 million. That was good news to council members, who went into their final budget study session Tuesday with the mission of closing a $1.6-million shortfall in proposed revenues over expenditures. Deliberations had begun five months ago with a $6.4-million gap.

Some proposed cuts were restored and other trims added during this week’s session, resulting in the expected surplus.

Several council members suggested the staff take a further look at the city’s contribution to promotional and civic programs, such as the annual Rose Parade float entry and the Glendale Symphony Orchestra.

Officials cautioned that much of the good news from the state is only temporary.

While the city would receive $1.2 million more than it expected, about $800,000 of that can be counted on for only one year.

Further cuts are expected next year, as state government revenues continue to drop because of the ongoing recession.

Part of the city’s cuts include a one-year delay in funds set aside for equipment replacement, which also is only a temporary solution to the mounting financial woes.

City Finance Director Brian Butler said he “felt good” about the council’s budget decisions.

“When confronted with hard choices, they made hard choices and did what they needed to do,” he said.

City Manager David H. Ramsay said the extensive cuts forced the city and council to take a close look at spending priorities.

“There are some good things to be said about tough times,” he said. “There is some benefit to all the pain.”