Cape Canaveral city leaders are trying to close a budget shortfall of about $4 million while operating with a significantly smaller staff.

During a budget discussion Tuesday, City Manager Keith Touchberry said the city expects to have 35 employees beginning Oct. 1 — roughly half the 67 employees it had when he started in summer 2025.

“Since that time, through attrition and resignations, (we’ve been) ensuring that we quit spending this fiscal year so we did not run out of money,” Touchberry said.

The city adopted a budget earlier this month, but Mayor Wes Morrison said it was not finalized and still required additional work.

“We adopted a budget that was not finalized,” Morrison said. “It had some work to still be done, different millage rate, and obviously different discoveries have happened since then.”

One of the biggest changes involves the city’s human resources department, which is essentially being eliminated. The department is now being covered by one part-time employee who works 33 hours a week.

The city has also removed engineering from its contracted services.

Council members raised concerns about how the reduced staffing could affect code enforcement, including the city’s ability to keep up with notices and violations.

“Because within that department, if things get backed up, you have a problem,” Mayor Pro Tem Kay Jackson said.

Touchberry said code enforcement officers are still working cases as needed to gain voluntary compliance from residents.

Tuesday’s meeting was a discussion about the city’s budget and staffing levels. City leaders are expected to continue working on the budget shortfall as more details become available.