Several Sutter Creek residents displayed dismay Monday at the idea of the city's operating at a substantial budget deficit.

Even in the wake of what Mayor Gary Wooten called "drastic" staff cuts made during the past year, Sutter Creek will operate at a budget deficit of some $255,000 during the remainder of fiscal year 2009-10. Fully $105,000 of that amount stems from buyouts of some staff positions, from which "significant" savings will be realized in the future, according to Sean Rabe, assistant city manager.

City Councilman Pat Crosby voted "nay" on adopting a deficit budget.

Resident Dan Riordan asked rhetorically, "Pass a $250,000 deficit budget - why would you do that?"

Riordan added, "I urge you not to approve a budget that's not balanced."

Wooten said, "It'll come back. Sutter Creek is not the only city in the U.S. to suffer a budget deficit."

Resident Ed Arata said his calculations showed that a remarkable amount of city salaries were paid from the town's sewer fund.

"I don't believe the rate payers want to do that forever," Arata said.

Approximately 60 people attended the session.

To allow last-minute public comment, council members had pulled the budget item from the consent agenda. They resolved in passing the budget to continue scrutinizing expenses toward further possible cuts.

"We've got to jump in and cut, and bring it into balance," Crosby said.

Wooten said he'd heard talk of disbanding the Sutter Creek Police Department and contracting out police services to save money.

He remarked on "the way everybody picks on the police department and wants to get rid of them."

Another thread of resident sentiment concerned cutting staff expenses by using volunteer help.

Wooten said, "We could get rid of every employee and do it all by volunteers, but that's not the way Sutter Creek is set up. It wouldn't work in the long run."