Council Member David Yassky of Brooklyn is calling for the city to begin allowing advertising on municipal trash cans and suggested that such a move, which he estimated could bring $2.5 million in revenue, would help during difficult economic times.

Mr. Bloomberg was worried enough about the situation that he canceled a high-profile trip to California, where he was to meet with Gov. Arnold Schwarzenegger today.

The mayor’s biggest challenge: how to deal with thousands of likely layoffs over the next few weeks, and the resulting loss of tax revenue on personal income, corporate profits and real-estate transactions. If Lehman, which employees 25,000, files for bankruptcy, as expected, most of its employees could lose their jobs. And once Merrill is sold, to Bank of America, the new owner is expected to cut many workers to avoid overlap. Merrill employs 60,000.

But should they succeed, many stand to gain a significant financial perk: lifetime retiree health insurance that costs the city up to $12,600 a year.

Those benefits could amount to millions of dollars in expenses over the next few decades, especially as health insurance costs surge, according to interviews with city officials.

Under current rules, city employees must work 10 years and pay into the pension system to become eligible for retiree health benefits. But the term limits law restricts members of the City Council, the mayor, public advocate, comptroller and borough presidents to two consecutive four-year terms — two years shy of the requirement.

Esposito, the highest-ranking uniformed member of the department, lives on a quiet block that residents say is virtually devoid of crime and trouble, other than the occasional rowdy teenager.

Police sources said the cameras — two aimed at his property and one that can rotate and capture images farther up the block — were set up as a precaution and not because the chief had received any legitimate death threats.

Esposito referred questions to the NYPD’s press office. Deputy Commissioner Paul Browne said it is the department’s policy not to discuss security matters.

. . .

One high-ranking police source, however, said the cameras in front of Esposito’s home are not among the 505 being placed at a cost of $9.1 million throughout the city to fight crime.

Esposito is highly visible, often seen at the side of Police Commissioner Ray Kelly during news briefings and known to respond at all hours of the day and night to major incidents.

Kelly has a camera outside his apartment door in the Battery Park City building where he lives, and there is a stepped-up police response whenever officers from the First Precinct respond there, regardless of the nature of the call.

It was unclear if any other police officials have cameras outside their homes.

Norman Ephron, longtime owner of Imperial Linoleum and Carpet Co. Inc., said within 30 days of the lane instillation, seven stores along E. Fordham Road were forced to close due to lack of business. He said the Select Bus Service is to blame.

“Why should customers come to Fordham Road if they can’t park,” the storeowner questioned, referencing the lane that eliminated 40 parking spaces from the heavily trafficked thoroughfare, including a handful in front of his 361 E. Fordham Road establishment.

. . .

After 40 years operating at the same site, he said he’s never once experienced the enormous decrease in business that’s occurred since the Bx12 express bus went into operation at the end of June.

“A lot of my business came from people picking up their carpet and taking it home. Now they can’t pick it up anymore.” His loading area now services the Bx 12.

Ephron said that also for the first time in four decades, nearly 90% of his 35-employee staff is working half days, down from their previous full-time hours.