"If we don't do 1.5 per cent this time, then the next council has to do 4.5 per cent," said Coun. Ben McDonald. "And if we get the glory for increasing services, we also have to take the heat for it if there is any."

But raising taxes is a divisive issue, and the very suggestion has some councillors protesting.

"Absolutely not," said Coun. Alan Woytuik. "In this time of high growth there's absolutely no reason for raising taxes in my mind."

Administration is calling for more money so the city can meet a 2005 council budget target which requires the city to have 10 per cent of its annual budget set aside in reserves.

As it currently stands, the budget shows the city $228,000 short in its general fund next year. Projections call for the shortfall to increase to over $600,000 by 2005, when administration is warning a 4.5 per cent tax increase might be necessary if no changes are made this year.

Add to the city financial picture a number of deferrals -- including almost $2 million in sewer pipe replacement work -- necessitated by overruns on the new twin-pad arena.

Since 1992, the city has raised taxes by 2.5 per cent while the consumer price index jumped 17 per cent.

Interviews with each of the city councillors suggest that council is evenly split on the tax hike question. Councillors Robert Hawkins, Dave McCann, Dave Ramsay and Woytuik oppose the increase.

"It's easy, yeah, just reach into the public's pockets again and try to find the money. But I don't think that's the right way to go about it," said Ramsay.

Councillors Wendy Bisaro, Blake Lyons, McDonald and Kevin O'Reilly general support increasing the city's revenue.

"The services provided to residents have increased over the years," said Bisaro. "At the same time the workforce at the city has remained the same or in some cases gone down. ... We can't forever go on expecting people to do the same or more for the same money."

Mayor in the middle

Decisions on a tax hike will be made at council's meeting next Monday. If nothing changes, Mayor Gord Van Tighem will be forced to break the tie -- and he will not clearly state where he stands.

He said the city needs a tax hike at some point -- but will not commit to raising the taxes this year until all other options have been exhausted.

"We're in a period of accelerated growth," he said. "In that period of growth there should be an increase of revenue that leads an increase in infrastructure requirements. So eventually you are looking at a tax increase as the source of incremental revenue. But is it now?"