The layoffs would play a big part in closing this year's $2 million budget hole caused by a loss in sales tax and development-related revenue.

The budget strategy is a five-year plan to restructure the city's general fund and related funds to make up for losses and keep steady reserves.

If approved, recreation and community services and community development will be the two departments most affected by the budget cuts. Staff is proposing to cut two recreation coordinators, a community services and planning manager and a custodian from the recreation department while building and planning could see a secretary, planner, and a building inspector lose their jobs.

The strategy includes bringing back some community development positions as development starts anew and, thus, building fees start rolling in again. If development doesn't start in 2011, as the strategy projects, then the positions won't be brought back.

The Morgan Hill City Council warned of service reductions, and they weren't kidding. The budget reduction strategy includes removing turf and playground equipment from some parks, turning off most residential street lights, reducing street maintenance to reactive measures only and eliminating environmental programs that aren't required by law.

City Council will review these recommendations at its meeting 7 p.m. tomorrow in Council Chambers at City Hall, 17555 Peak Ave.

A public workshop will be held Tuesday, Dec. 9 at 7 p.m. at the Community and Cultural Center to answer community questions about services, costs and revenue. Then, at 7 p.m. Dec. 10, City Council will conduct a workshop to explore the recommendations fruther, ask questions and pose alternatives. A public hearing will be Dec. 17. On Jan. 14, the council may finally approve the budget reduction strategy.