Councilman Perry Woodward said he believed there would be a decline in the level of service if Gilroy contracted with the sheriff's department, and he doubted Gilroy would experience much savings.

Of the three cities in Santa Clara County that contract with the sheriff's department for police services, Cupertino is closest to Gilroy's population. Cupertino has 55,551 residents compared to 51,173 in Gilroy. But the contrast in expenses for police services is startling.

Cupertino's budget for police services - at $8.3 million - is less than half of what Gilroy spends annually - about $19 million. That's according to a sheriff's department report which breaks down the numbers to about $372 per resident in Gilroy and $150 per resident in Cupertino.

Gilroy Police Chief Denise Turner said comparing those police departments budget is like comparing apples to oranges. Other cities include only materials and personnel figures in their budgeting, she said, while Gilroy's budget consists of "every bit of overhead," including fleet costs, information technology figures and human resources.

In Cupertino, however, City Manager Dave Knapp is a convert. He admits being skeptical when he first took the post and learned that the city was contracting its police services out to sheriff's deputies. But after several years at the city's helm, he says he can't see a single drawback.

"I have to say, it's a good price, and we get excellent service," he said.

Santa Clara County Sheriff Laurie Smith acknowledged that the two cities have major differences. Gilroy's demographics and income level don't come close to upscale Cupertino where the average home price is $1.1 million, and the gang problems in Gilroy are far more serious than other cities that contract with the sheriff's department.

But police departments throughout the state generally save money when they are run by the sheriff's department, Smith said.

She used a comparison between Saratoga and Los Altos to demonstrate the point. Saratoga has 31,592 residents, Los Altos has 28,291. Smith said while the cities are similar demographically, Saratoga, a contract city, budgeted about $4.2 million for police services this fiscal year, while Los Gatos budgeted about $7.1 million.

Part of those savings result from cost-sharing agreements, she said. For example, Saratoga, Cupertino and Los Altos Hills all share a command center based in Cupertino for dispatching services.

Sgt. Matt Dutra, president of the Sheriff's Association, agreed.

"They're realizing savings because they're not paying for an entire building," he said.

But, while Gilroy City Council members are openly exploring contracting out for fire services, the tone is far different when it comes to law enforcement.

"If we can't afford to operate a police department, that will be a very sad day," Woodward said.

Mayor Al Pinheiro noted that the city has never discussed the idea of contracting out police services, so it would be premature to offer an opinion. Still, he did not say it was unthinkable to discuss the matter.

"I can tell you that these (economic) circumstances are going to steer cities to look at things that they weren't going to entertain in the past," he said.

Councilwoman Cat Tucker said she favored local control, and noted that Gilroy's demographics are quite different from those of Cupertino.

"I'd have to get a lot of information before I went in that direction," she said.

Gilroy Police Officer Mitch Madruga, president of the Gilroy Police Officers Association, also expressed cynicism about contracting out police services. Several Gilroy police officers were born and raised in town, and therefore they have a major stake in the well-being of the community, he said.

Still, he said some police officers are getting increasingly upset with city officials in the wake of budget cutbacks and layoffs in the past year. Madruga said that a member of the GPOA expressed interest in learning more about the possibility of contracting with the sheriff's department, so the union allowed him to talk with the Deputy Sheriff's Association to learn more. However, the officer has yet to report back to the GPOA about his findings, he said.

Both the county sheriff and the Sheriff's Association representative said that the sheriff's department is not interested in pressuring any cities to join forces with them, and they want to maintain good relationships with local police departments.

At the same time, they said they are always willing to talk with cities if they wish to consider using their services.

Contract cities have control over how many police officers are in town and how long they are expected to stay there, Smith said.

Cupertino's city manager said there were certain issues that he is glad that the city does not have to handle under the sheriff's department agreement. For instance, Knapp enjoys the luxury of not being responsible for contract negotiations, and the city has access to specialized services such as helicopter and a bomb-sniffing dog without additional expense.

Knapp added that Gilroy would be shocked how much it could save if the sheriff's department handled its policing services, yet acknowledge that most cities would not want to cede local control.

Cupertino - like all of the sheriff"s department's current contract cities - never had its own police department.

Cost per resident for police services in Santa Clara County for fiscal year 2009

City; Cost per resident; Percentage of city budget on police services

Los Alto Hills*; $102.10; 20.35

Monte Sereno; $128.82; 17.29

Saratoga*; $131.96; 24.43

Cupertino*; $149.68; 19.58

Morgan Hill; $249.75; 37.01

Los Altos; $251.38; 25.91

San Jose; $284.13; 26.78

Campbell; $322.12; 35.93

Milpitas; $324.30; 31.03

Mountain View; $367.05; 30.70

Gilroy; $372.36; 42.62

Santa Clara; $377.47; 30.66

Los Gatos; $426.36; 39.54

Palo Alto; $470.77; 20.53

Sunnyvale; $507.74; 22.95

*This city contracts with the sheriff's department for law enforcement services.