WAUSAU, Wis. (WSAU) – Wausau laid off 10 public works employees Wednesday in a cost-saving measure and the city's chief executive hinted more layoffs are possible.

Mayor Jim Tipple will also require public works and clerical employees take two furlough days before the end of the year. The first will be next Wednesday. The other will happen December 23rd.

City Hall and customer service counters of the police department, community development authority and public works will be closed both furlough days.

Tipple said the city moved forward with the layoffs because its five unions did not agree to defer $365,000 in pay raises until the end of 2010.

The city must now make up a $534,000 deficit before the City Council votes on a balanced budget Tuesday. The deficit includes the $365,000 in wage increases that won't be deferred and $169,000 in costs the city must account for.

Union officials insist they would have deferred their increases had the city guaranteed no layoffs.