SUNSET — As the Sunset City Council grapples with declining sales-tax revenue, it is searching for ways to trim its budget for 2010 without losing service, cutting jobs or raising property taxes.

It's a tricky proposition, says Sunset Mayor Dan Gotchy.

"Every city is feeling the punch right now," he said.

Already, the city's $2.23 million general fund budget for 2010 is $110,000 leaner than the current budget.

So far, the city is in the midst of a hiring freeze, and no cost-of-living or merit raises will be handed out. A police car and dump truck that originally had been part of the budget are no longer there, said city recorder Susan Hale.

But Sunset still needs to figure out how to make up about $40,000, Hale said.

It has started by cutting costs internally. The annual Sunset Fun Days celebration has been scaled back, but it is still expected to be a great time for residents, Gotchy said. And conference travel for various city employees has been removed from the expenditure side of the budget.

But the city can't really afford to lose any employees, either, Gotchy said, because they are stretched as thinly as possible.

If internal cuts don't work, the council would have to look externally, Gotchy said, meaning a short-term property-tax increase. If the City Council ends up approving a property-tax increase in August, Gotchy said, he would work to scale it back as soon as possible.

"This was a hard year," Gotchy said. "Next year we plan on being OK."

Among the positives that could affect Sunset's bottom line are an end to the recession and development on the western side of Hill Air Force Base at the Falcon Hill National Aerospace Research Park, which is expected to become an economic boon for Sunset and other surrounding communities.

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Budget highlights

General fund: $2.23 million

Property tax: Increase possible

City employees: No new

Employee raises: None

Public hearing: August date to be determined