Staff in the Blue Mountains are cutting back the 2009 budget.
The proposed tax increase of 4.9 per cent has been cut to 2.3 per cent for the municipal portion of the tax bill.
The proposed budget calls for 43 million dollars in expenditures this year.
Council has heard declining revenues tied to the economic downturn are the main culprit behind the tax hike.
Finance Director Rob Cummings says they have lost half a million dollars in reduced development charges and grants.
Cummings notes there’s also increased costs for police and fire services.
There are also big increases in capital funding for roads, bridges, and drainage as well as parks and trails.
Deputy Mayor Duncan McKinlay says the town has had to put off some proposed projects.
The Town Hall project proposed cost of 7.95 million dollars won’t impact the budget until 2010.
Councillor Bob Gamble is worried that future taxpayers will be saddled with costs of deferred projects.
CAO Paul Graham believes now is the time to plan for future projects so that the town is ready to move forward when the economy picks up.
The town will see almost 420 thousand dollars in revenue from new development, with the total assessment topping 2.6 billion dollars.
Council heard heavy criticism from residents at a public meeting last month where retirees complained rising taxes are hurting their investment income.
Council will vote on the budget in February.