The council voted unanimously to reduce the workweek for city employees to 38 hours and terminate the last new Police Department hire.

With 60 percent of the city's budget allocated to staff salaries and benefits, that's where the cuts had to start to save the city from months of downward spiraling gross receipts tax revenue, according to Councilor Steve Anaya.

Anaya pointed out that the city's general fund has dwindled from $359,000 in January to $115,000 at the end of September.

"Hopefully this will help alleviate some of the problems," Anaya said. "We want to encourage everyone to shop at home."

A gross receipts tax is similar to a sales tax, but it is levied on the seller of goods or services rather than the consumer. So when residents and travelers shop at Moriarty businesses, the city benefits from the taxes.

Gross receipts taxes have been steadily going down about $20,000 a month since last year, Mayor Adan Encinias said. Even though October was the first month in a long time that showed a slight increase, Encinias said cuts needed to be made.

The decision came after the council discussed the matter in executive session. When the public was allowed back in the room, a somber feeling enveloped the council chambers.

"This was a very tough decision," Councilor Larry Irvin said. "The recession has hit us hard. I didn't want to compromise, but we had to do something, so we did it."

Encinias agreed.

"It absolutely breaks all of our hearts to do this," he said.

The change will be effective as of the next pay period.

In other business:

City Engineer Carl Lovato had a bit of good news. The city's replacement well is not dry, he said. Pump tests indicated the well can produce 27 gallons per minute. Even though it's not a lot of water, Lovato said it can still be put to beneficial use, and it meets the terms the state Environment Department made to fund the well project. The pump test was scheduled to be completed at 8 a.m. Wednesday, Lovato said.

Debbie Ortiz, executive director of the chamber, also filled in the council on the upcoming Alco Challenge. Nonperishable food items will be accepted at local businesses in Moriarty and Estancia from Nov. 23 to Dec. 6, and Alco will be matching everything collected pound for pound. All collections will be donated to the Bethel Community Storehouse, Ortiz said.