City departments are being asked to trim their budgets and city ratepayers should prepare themselves for yet another tax hike in the upcoming municipal budget.

In a series of interviews with members of city council and city administration this morning, city officials confirmed that every department has been asked to trim their discretionary funding budgets.

At least one city official also confirmed that local ratepayers can likely expect a tax increase when the budget is tabled Dec. 11.

Last year's municipal budget was just over $38 million when it was tabled, and has undergone several amendments.

Coun. Dave Austin said this morning that in the wake of rising costs being experienced by the municipal government, a tax hike is something the city will likely have to face.

'I think that's probably the case. We have to come up with the money. It's either that or reduce the budget,' Austin said.

'The way things are going, people are going to have to expect a tax increase. I think we're looking at a tax increase and a user-pay increase.'

Austin said things such as the rising costs of fuel, wages and salary increases and the costs of snow removal are some of the factors that could influence the budget.

Austin said a cutback in services 'may' be another thing the city could consider but that that was not an option he would support.

'I don't know where we can cut back.'

According to the city's finance office, property tax rates rose by two per cent in each of 2006, 2005 and 2004.

To assist in waterfront development, the city also raised property taxes by two per cent in 2002.

In 2000, property taxes were dropped by 1.65 per cent when new tipping fees were brought in at the dump, according to the finance office.

When property values in the city were reassessed last year, according to the finance office, tax rates were readjusted by the average rate of increase before adding the two per cent tax hike.

Coun. Dave Stockdale said this morning that during the ongoing budget discussions, which began shortly after the Oct. 19 municipal election, city departments were asked to trim their budgets.

'The thing the staff was asked to do was to trim their discretionary funding budgets. Every department was asked to trim 10 per cent of their discretionary funding. It's not going to affect programming,' Stockdale said.

'Discretionary funding is for things like paper work or putting up extra banners.'

City financial manager Ray Goruick said this morning defining discretionary portions of departmental budgets is something that's being looked into as there currently is no clear definition of what could be considered discretionary and what could not.

Goruick said salaries and wages, 50 per cent of the city's budget, as well as fuel costs are not discretionary.

'(Discretionary funding) is a very small part of the overall budget,' he said explaining that he is looking into the matter.

City manager Dennis Shewfelt said this morning discretionary budgets vary from department to department.

Any budget cuts or changes to service levels, he added, are the responsibility of council.

'During the budget preparation process, we were asked to look into areas where there was discretionary funding,' he said.

'Discretionary budgets vary but I cannot discuss the details,' he said. 'The level of service that council provides is up to council.'

Mayor Bev Buckway said this morning some departments have been asked to cut back their budgets.

'Some departments could be asked to cut back more than others,' she said.

'I can't speak to that with clarity.'

She said she isn't able to speak to details of the budget until it's presented on Dec. 11. After that, there will be two months in which the public could comment.