The Simi Valley City Council adopted a $63.6 million budget for fiscal year 2008-09 on Wednesday night, balancing the books partly by cutting funding for seven filled positions in various departments.

Most of the layoffs won't happen immediately. The council approved funding for six months for three building inspector positions and one police community service specialist, and eight months for one police records manager. Funding, however, for a part-time secretary and a part-time property room technician in the Police Department was entirely cut.

The council closed an anticipated budget shortfall by cutting about $4.2 million from various departments. City officials said layoffs were a last resort, but a tight budget and lack of revenues led Simi Valley to consider cutting funding for almost 40 positions, most of which are currently vacant.

The three building inspectors make up the Municipal Unsafe Structure Tracking System, a city-initiated program to combat unsafe housing conditions such as overcrowding and illegal garage conversions and bring them up to code.

The council voted to fund those positions for at least six months, hoping additional money will become available later.

"Can you find another rabbit and pull it out of the hat?" asked Mayor Paul Miller.

The cuts in the Police Department will save $186,000. None of the cuts involved sworn officers.

In all, $1.2 million was taken out of the Environmental Services Department, including a vacant senior planner position, five vacant associate planner positions, and a reduction in the travel and training budget.

About $2.2 million was cut in the Public Works Department, including vacant senior engineering positions, a vacant assistant director of public works and a reduction in funds for street repairs, sidewalk maintenance and building maintenance supplies.

The budget could change after a state budget is approved. State lawmakers have a July 1 deadline but are not expected to meet it.

Because the state is predicting a $15 billion budget shortfall, another round of budget cuts could happen in Simi, said City Manager Mike Sedell.

Sedell referred to the layoffs as "right-sizing" the organization. He said the city has had a hiring freeze since February.

Council members said the building tracking program is important and will continue. If funding for the three inspectors isn't available at the end of six months, the duties would be shifted to remaining inspectors.

Salaries and health benefits make up about 76 percent of the city's general fund, a staff report said.

"This has been a very difficult budget year," Sedell said.