Updated: 12:35 p.m.

City Council will hold a special meeting Wednesday evening at 6 p.m. to vote on a resolution to grant staff permission to explore options to cover a $500,000 to $1.2 million hole in the city's general fund which comes as a result of the dissolution of redevelopment agencies. 

The deficit could mean permanently removing a yet to be filled fire fighter position, reduced hours for city departments, cutting certain programs or increasing fees for city services, said City Manager Gary Brown. 

A portion of several city employees salaries were paid by Imperial Beach Redevelopment Agency funds. When percentages are combined, among about 70 city employees, redevelopment funds paid the salaries of 11 employees, Brown said.

The shortfall also comes from still unanswered questions like if a loan given to the Imperial Beach Redevelopment Agency by the City of Imperial Beach will be refunded by the state. 

If council approves the resolution, Brown said he will return to council this spring with ideas on how to get the city back in the black and propose possible contingency plans.

After the special meeting, City Council and staff will move to the Community Room across from council chambers for a workshop meeting to discuss possible ways to cover the shortfall or create revenue and life after redevelopment. Finance Department director Michael McGrane will make a presentation explaining the city's current finances.

The deficit could mean the city stops funding graffiti cleanup, Fourth of July fireworks celebrations or sever its public relations contract with J Simms Agency, Brown said.

It could also mean the Imperial Beach Little League and Imperial Beach Girls Softball be required to pay fees for using the field and lights at the Sports Park and Recreation Center.

"That's pretty extreme but those are the types of ideas we all have to throw out and evaluate them and see what we can come up with. I think we'd like to do as little cutback to services as possible but that's always a fine balance of not wanting to raise costs to people's fees and that type of thing," Brown said.

Trash pickup charges may also be reviewed again.

"Over a year ago now council decided not to increase the franchise fee for EDCO trash pickup, and understandably in a real bad recession, depression whatever you want to call it who wants to raise charges on people but those are the hard things we have to take a look at," Brown said.

Members of the public are invited to join in the discussion via public comment.

Negotiations with city employees SEIU union will likely take place to determine which employees have seniority and discuss the possibility of reduced hours. 

Brown emphasized that employees who focused on redevelopment like agency coordinator Jerry Selby and project manager Elizabeth Cummings will still be needed for years after agencies were dissolved Feb. 1 for oversight of projects and to monitor contracts.

The city will also review Sheriff and Unified Port of San Diego contracts to find ways to possibly reduce spending, Brown said.