Eleven Lake Elsinore workers were given two weeks severance pay before being laid off last week as the city took steps to close a $742,540 budget gap, officials said.

The layoffs, which reduced the number of full-time city employees from 68 to 57, was the largest cutback in the lakeside city in at least a decade, City Manager Bob Brady said in a telephone interview afterward.

They were part of a string of belt-tightening measures that have trimmed police patrol hours and cut spending on travel, utilities and other expenditures in the city that is split by Interstate 15 and is home to about 51,000 residents.

"We’ve made cuts across the board in various areas to reduce budget costs," Brady said. The 11 positions were picked after city officials examined staff levels in various offices and operations, he said.

Mark Dennis, the city’s information and communications manager, had worked for Lake Elsinore about a decade and was among the longest-serving employees to lose their jobs. The other eliminated positions included a code enforcement officer, a customer service specialist, a maintenance worker, an associate planner, an administrative assistant, a building inspector, a code enforcement specialist and two office specialists.

"I don’t really think (residents) will see any significant changes in services," Brady said, adding that City Hall will be additional hours this fiscal year. There could be longer waits to process plans or obtain some inspections, he said.

"We’re going to make every effort possible to provide these services to the community," he said.

The layoffs were announced July 1 after labor negotiations ended without an agreement from employee unions to forgo merit pay and cost of living increases and continue an existing 24-day furlough program.

The job cuts are believed to be the deepest made by a southwest Riverside County city as all municipalities struggle amid lagging property and sales taxes and an increase in sheriff’s contract services and other costs.

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Barrier Reef Pools Elsinore job loss is eight positions more than the three that were previously anticipated. City officials said the action – which is expected to save Lake Elsinore about $974,000 a year – was the "only means left" to balance the budget without labor concessions.

Negotiations between the city and the Laborers International Union of North America Local 777 ended with its 60 members voting to keep their existing memorandum of understanding in effect during the fourth and final years of the contract.

The city’s management group unanimously agreed to forgo its merit and cost of living increases, officials said. That step saved the city about $56,000 a year, officials said.

The city’s $27.2 million operating budget was adopted on June 8 by the City Council while labor negotiations were still pending.

The revised budget for the recently-begun fiscal year will be balanced through a combination of the layoffs and other personnel savings that together total $1.1 million. The city will also tap $1.7 million in one-time monies that had previously been loaned to its redevelopment agency, and $436,685 in "rainy day" or supplemental revenue funds.

That is expected to leave $1.4 million in "rainy day" funds that can be spread over the next two or three fiscal years, which are also projected to face revenue shortfalls.

The city’s $3.5 million emergency reserve fund will not be tapped, Brady said. 

The council remains committed to public safety as its number one priority, officials said with police and fire services representing nearly 50 percent of the city’s operating budget.

The city’s slogan, "Dream Extreme," spotlights the scenic beauty and active lifestyle of the 122-year-old former resort town.

The city – which features a historic business district and encircles much of Southern California’s largest natural freshwater lake – is a magnet for water sports and sky diving enthusiasts. The city also has a minor league professional baseball team that plays in a signature stadium.