GULF SHORES, Ala. — Following in the steps of neighboring Orange Beach and companies nationwide, Gulf Shores Mayor Robert Craft announced a workforce reduction in city employees Monday night.

“It is truly unfortunate that we have to have a reduction in force, especially this time of year, but it is our responsibility to run the city with the amount of money we have to spend,” Craft said.

What he called a “work in progress,” the rough draft includes a cut in 40 positions. Mostly full-time employees, some positions to be eliminated are part-time or vacant jobs.

The layoffs are the response to a possible $1 million deficit the city could be facing.

Last year the city worked off of a $29 million budget and was able to keep expenses down to $26.8 million.

However, this year with the drop in sales and lodging tax, the city is expecting to see only $23 million in revenue.

The unapproved, preliminary budget for 2009 was projecting about $24 million in expenses.

“We are anticipating a significant decrease in the amount of revenue that the city will get,” Craft said. “Our goal is to try and create an expense program that will have some budgeted surplus.”

That budget will not be passed this year and the city will run on a interim spending plan that will be passed, along with the reduction in force, on Dec. 15.

Craft is hoping to have the 2009 budget confirmed and approved by February.

“I am not going to pass (a budget) that has a million dollar deficit,” Craft said. “We have to get expenses under control.”

Craft said the city has made cutbacks every way possible to avoid lay-offs.

“We are cutting out any new automobile purchases, no new tractors or equipment,” he said. “We are telling people they have to maintain what they’ve got.”

Those who will be laid off in the initial reduction were notified yesterday and today.

Craft said he will not be making a public release of those positions eliminated, however, he did say Public Works, not necessarily with personnel, would be seeing the biggest changes.

Concerned of their own jobs and cuts to their programs, the Gulf Shores Fire and Rescue Department was in full force to plead with the council.

“What’s going to happen? What’s going to go on?” asked Brian McMahan, a paramedic and board member of the International Association of Firefighters, Local 4591. “We would like you to really consider what would happen to the city. It’s going to affect the future growth of the department and the services we provide to the city.”

Departing employees will work until the end of the year and full-time workers, who have been with the city a full year, will receive one month’s pay.

Part-time and those who have not met the full year will receive a pro-rated check. Employees will all receive their accrued vacation and sick time.

“We are making sure we are doing it in the right way,” Craft said.