GALVESTON, Tex. (AP)  Galveston police and firefighters’ unions have agreed to take a 3 percent pay cut to help the city avoid layoffs and save $600,000, according to a report in The Houston Chronicle.

The move comes as a result of Hurricane Ike, which hit shore near Galveston on Sept. 13, killing at least 37 people in Texas. Flooding from the hurricane devastated homes and businesses in the city.

The city manager, Steve LeBlanc, predicted that the losses would cause a 30 percent decrease in property tax values and a 10 percent drop in sales tax revenue. To combat that budget shortage, city leaders proposed an across-the-board 3 percent pay reduction to generate the $600,000 savings.

About 40 percent of the 880-member municipal work force  police and firefighters  belong to unions that had to vote on whether to give up raises they were given in October.