The Los Angeles City Council on Monday discussed hiking fees for ambulance usage, burglar alarm responses and other services provided by the Police and Fire departments as it looks for ways to cover a $212 million budget shortfall.

A working group headed by Councilman Greig Smith that included union leaders came up with a report outlining savings or new revenue totaling $3.5 million this year and $23 million next year, when the budget deficit is expected to more than triple to nearly $700 million.

"I know we are trying to run the city more like a business, but this is a service we provide," Councilman Tom LaBonge said at one point during a lengthy debate over service fee increases.

"I don't want to see a day when people are afraid to call (emergency services) because they can't afford what we are going to charge them."

Smith said the report represented a consensus on a range of options the city should consider, including possible parcel taxes for fire service similar to what the county has in place and taking another look at staffing levels in the Police and Fire departments.

The council put off consideration of any new taxes for the time being.

"We don't sense there will be enough public support to approve any parcel tax," Smith said.

However, Councilwoman Janice Hahn said she believed there should be further review.

"I think if we can make the case to the public on the need for this and how the money will be spent, they will support a parcel tax," said Hahn, who had authored a proposal for a tax for after-school, anti-gang programs that narrowly lost.

Council members delayed for a week consideration of a proposal to eliminate staff assigned to 10 basic life-support ambulances.

Smith said he wanted to get more detailed information from the Fire Department on the impact of such a closure. Originally, he said, he had been told it would affect only 3 percent of all calls. Officials on Monday said it could affect up to 40 percent.

"I was willing to support this if it was 3 percent," Smith said. "But 40 percent is too large for us to cut."

The council also asked for a report back on whether it should use its Municipal Improvement Corp. to finance the purchase of new ambulances. Several dozen of the ambulances are nearing their maximum capacity and could soon be spending more time in the repair garage than on the street.

For the LAPD, the council asked for reports on whether it can charge outside agencies for its training programs, and whether it should increase burglar alarm response fees as well as outsourcing personnel background checks on applicants.

The LAPD has said it would propose spending cuts of $45 million in a variety of areas, from expense accounts to training program costs.

Another area to be discussed in coming weeks is the area of LAPD staffing and whether the city should continue its plans to keep the department at 9,963 officers along with plans to hire more civilians to free up officers.

The council also asked for a report back on whether it can lease out space at its new Metropolitan Division Jail to the state or federal governments.