That was the dire message newly-appointed Town Manager Ben Shivar offered to the Town Council on Thursday shortly after taking his oath of office. Early forecasts show that Cary's general fund could take a significant hit in the fiscal year ending in 2010. Susan Moran, the town's public information officer, later clarified that the expected decline could be attributed to multiple town expenditures and a tax base that is not expected to grow.

"As we move into 2010, we have on very preliminary estimates formed an expectation that the general fund revenue ... may be down about 10 percent," Shivar said in his remarks. "That's probably a little higher than we expected a month or two months ago."

Shivar noted that the figure could be slightly less if revenues generated from sales taxes, which have mostly been in decline for months, experience a rebound. But he said that wasn't a guarantee.

As such, Shivar said he had ordered all department heads at Town Hall to suspend contracted services pending review by himself and the town's budget director. And he said the 26 vacant positions currently on hold until July would likely remain unfilled for some time.

But despite the grim news, Shivar said he expects to be able to present the Town Council with a balanced budget this year that would not increase the burden on taxpayers. "My goal is to present the council this year with a balanced budget for 2010 that does not include a tax increase and maintains current service levels as much as we can," he said.