The sound system wasn't working at the Salem City Council meeting Monday night.

"Budget cuts," Mayor Randy Foley joked into his dead microphone. "We're getting to that." And shortly they did.

City Manager Kevin Boggess started the evening's agenda with an overview of some spending reductions that the city has put in place, with a look at some more drastic measures that are being considered.

The belt-tightening comes in the face of a projected state budget shortfall that could reach $3.5 billion and affect state aid to localities.

On the list of cost-saving efforts?

Salem has begun a hiring freeze for what Boggess termed "noncritical" positions.

The freeze is aimed at reducing staff through attrition and does not apply to the schools or positions deemed critical to resident services, including the police. So far, the move has left three positions open.

The city is also reducing contracted work and services that can be performed in-house, Boggess said.

Third, Salem is conducting an audit of its operations to look at where energy -- and costs -- could be cut, and the savings invested in new, more efficient appliances. That may include low-water toilets or LED stoplights, Boggess said.

In closing, the city manager offered up a few ideas the city had researched for potential savings ahead. Though unlikely, one of the items being researched is a 10-hour, four-day workweek, he said.

"We don't think the sky is falling," Boggess said after the meeting. But with a number of uncertainties, he said the city was bracing for the worst.

Foley also called the moves preparatory, especially with lean budgets on the horizon.

"Everything we're hearing is that the current fiscal year is difficult, but the coming fiscal year is more difficult," he said.

In other business, David Preston was the lone candidate for the Salem School Board to present himself to the council, saying he would like to keep his seat on the board. His term expires at the end of the year.

Several council members thanked him for his past seven months of service. The council must wait seven days before making its appointment.

The meeting concluded with a closed session to discuss a developer's inquiry into property at the Salem Commerce Park. The item ended without action.