With the recent upheaval in the national economy, Mayor Greg Nickels and Seattle City Council members say "adjustments" are needed to the proposed 2009-2010 budget to reflect slower growth in projected revenue to the city's general fund.

"Seattle remains in a much stronger position than the rest of the nation, but it is only prudent that we budget cautiously in these uncertain times," said Nickels. "We have to be prepared that the turmoil in the nation's financial and credit markets will affect our local economy."

The Department of Finance's November revenue forecast still projects growth in city general fund revenue over the next two years, but the revised figures are more conservative, scaling back revenue forecasts by 0.8 percent ($7.6 million) in 2009 and 1.2 percent ($10.6 million) in 2010.

The mayor and council are working collaboratively to address a decline primarily in projected sales and business and occupation taxes, and on Friday they expect to announce a range of options to adjust the budget. Nickels applauded council members for working together to close the budget gap without cutting critical public safety or human services programs.

Neither the mayor nor council plan to tap the city's rainy day fund, which remains at $30.6 million.