Calgary's mayor says the City's top priority is to balance the books and that means some City Hall staff are facing the axe.

Mayor Dave Bronconnier says the City's operating budget is short nearly $50-million, however there is $30-million in savings and the shortfall is for the 2010 budget.  

Several City departments could be affected and the shortfall could result in a hiring freeze.

The mayor confirmed Monday night that the City's Building and Planning Department is the first victim of the cuts.

70 jobs have been affected. 30 people were released this week. According to Bronconnier, the other 40 jobs were either vacant or reorganized. Dozens more could lose their jobs in 2010.

The mayor says new building permits have dropped 50 per cent and that's caused a huge decline in revenues in the Building and Planning Department which is fee for service.

The mayor says protective services like the Calgary Fire Department and the Calgary Police Service will not face any budget cuts.