POULSBO — With a 5 percent reduction across departments, a list of cost-saving measures and $255,000 from the city’s reserve account, the City of Poulsbo can tentatively balance next year’s general fund budget.

But the gap between money coming in and going out could grow larger, or smaller, depending on whether the city council decides to offer employees one unpaid day off from work a month or approves about $112,000 for new police equipment.

A total of $328,000 is available for next year from the city’s reserve account, meant to stave off cuts until troubled economic conditions improve.

Councilman Ed Stern, chairman of the council’s Finance Committee, said Wednesday during the 2010 preliminary budget presentation that the immediate future does not look much brighter.

“We all know 2011 is going to be worse than what we are facing now,” Stern said.

The general fund budget — the pot of money that pays for core city services such as police, the municipal court and city administration — also may change as the council considers requests for current and new programs. A balanced city budget will go before the council for a vote before the end of the year.

Also, the council previously approved a 2 percent levy increase on property, saying that although state law restricts the increases to 1 percent, the city will be entitled to additional dollars from new construction and refunds. The assessed value of property in Poulsbo is expected to decrease about 4.9 percent through next year, or about $62 million, according to preliminary number provided by Finance Director Deborah Booher, who presented the budget to the council Wednesday.

Furloughs received a mixed review from council members.

Councilman Dale Rudolph said he was “categorically” opposed to furloughs, saying they were unfair to employees who expect a full paycheck to cover their bills.

Councilman Jeff McGinty said the effect on services to residents would have to be carefully considered.

“To do this you have to do it smartly,” he said.

Councilwoman Becky Erickson supported the idea as a trial until the middle of 2010.

Other council members expressed interest in the idea, and several noted they wanted any program to be voluntary.

The proposal under consideration estimated that monthly furloughs would save the city a total of about $161,000, Booher said.

Among the cost-saving proposals is a measure that would reduce the amount of hotel/motel tax given organizations that promote tourism and using that money to pay for police overtime at special events and maintenance at Anderson Park.

Councilwoman Linda Berry-Maraist questioned reducing the support to the Poulsbo Area Chamber of Commerce and the Kitsap Peninsula Visitors Bureau.

“That’s one area our community has seen a boost in,” she said.

The proposal would free up about $28,000 of general fund spending, according to budget documents presented at the meeting.

The police department is due two Chevy Tahoes, for a total of about $100,000, and needs a $12,500 color copier.

Councilmembers suggested how the city determines the life-span of a vehicle could be reviewed, and also whether to review the policy of officers taking vehicles home.

Police Chief Dennis Swiney said the current policy is meant to extend the life of the vehicles and the department saves officer time and creates a larger presence by letting officers commute in their patrol cars.

Included in the proposed budget is $5,000 for the Sound Works Job Center. The grant for the no-fee job placement service had initially been considered for cuts.