Sacramento's budget woes aren't getting any better – and nearly 900 city employees are about to have a bite taken out of their wallets.

In another cost-saving measure aimed at avoiding layoffs, nearly one-fifth of all city employees will be required to take one unpaid day off per month effective Jan. 1.

In a memo sent Monday to the city's approximately 5,000 employees, City Manager Ray Kerridge said the cut could save more than $2 million over the first six months of next year. The program will affect 889 non-union employees and could continue for longer than six months.

The furloughs amount to about a 5 percent salary reduction for those taking the cut. Most of those employees are in supervisory positions, including 54 members of the Police Department and 27 with the Fire Department.

Kerridge said the move would help soften the impact of future cuts and was not earmarked to make up for any particular cutback – including the $1.8 million in services slashed by the Police Department.

The City Council is scheduled to hear from Kerridge and Police Chief Rick Braziel tonight about those cuts. The reductions will lead to longer waits for 911 calls to be picked up, a decrease in the number of serious crimes detectives respond to after hours and fewer police patrols.

Monday's news is part of a bleak budget forecast. City Hall is likely facing more cuts at its fiscal midyear review in two months, and next year's budget shortfall is projected to surpass $40 million.

Kerridge continued to say "nothing is off the table" when it comes to future cuts. About 70 percent of the city budget goes to labor costs, meaning layoffs remain a possibility.

Some of the positions taking the cut are support staff, Kerridge said. The furloughs do not affect City Council members or those who work in the offices of the treasurer, city attorney or city clerk.

"The city manager's office and non-represented staff need to lead by example," Kerridge said in an interview.

Kerridge said he was open to speaking with the city's unions – who represent the remaining 4,000 or so employees – about other cutbacks. The city is expected to begin negotiating with the unions about their contracts after the new year.

In his memo, Kerridge acknowledged "these measures will create hardships for all of us."

"But we have a responsibility to live within our means and continue to provide the best possible services to the citizens who rely on us," he wrote.

Mayor Heather Fargo said the furloughs were unavoidable given declining city revenue from sales and property taxes.

"The message I want to give city employees is that we value them," the mayor said. "All of them work hard and this is a way to keep as many people employed as possible and keep as many of our city services as possible."

Kevin Johnson, who is challenging Fargo in the Nov. 4 general election, said the cutbacks are a result of a lack of planning on the mayor's part when times were good.

"The issues we're talking about, in my opinion, are a result of a lack of leadership," Johnson said. "Now we have to make unpopular decisions. Bad budget news doesn't get better with age."

In addition to the furloughs, Kerridge said his office would approach the City Council about reintroducing the voluntary separation program offered earlier this year to the Police and Fire departments and said buyouts may be considered for other city employees.

The city will also freeze travel, food, equipment, training, subscription and membership costs for all employees, unless they are approved by the city manager's office.

The cutbacks come three days after the Police Department said it was implementing a series of drastic service reductions to fill a budget shortfall. The police budget was cut by 8 percent in June to help fill a citywide budget gap of $58 million, but the department is about $3.6 million short of that mandate.

The latest cuts will slash $1.8 million from the police budget, meaning the department still has to come up with another $1.8 million.

Braziel said Monday the additional buyouts could be offered to his officers. And though furloughs and a decrease in overtime will help chip away at the department's budget shortfall, he said, it won't finish the job.

"I'm not confident at all that we'll get that extra $1.8 million," he said, adding that layoffs remain a possibility.

In response to the police cuts, Fargo said she would take a 10 percent salary cut and called on Kerridge and Braziel to do the same.

Kerridge said Monday he was not taking the cut, noting he is taking the one unpaid day off per month and already was denied a raise earlier this year.

Braziel said he also would not take the cut. He said he agreed to a salary that is 8 percent lower than what was offered to him when he was named chief and that he is also affected by the furloughs.

At least one city department already has started making its own reductions. Though it's not covered by the cuts announced Monday, the city clerk's office has implemented a furlough program.

City Clerk Shirley Concolino said all 13 staff members in her office – including herself – take 16 unpaid days off a year. She said her office set up the program to avoid losing staff.

Concolino said the furloughs have saved her office $50,000 this year.

Call The Bee's Ryan Lillis, (916) 321-1085.