AUBURN - City manager John Salomone said a tax increase would be inevitable in order to balance the budget this year, though the first order will be to find all potentials for cost savings.

"We have to look as part of the solution as a tax increase," Salomone said at the city council meeting Thursday night.

The city council continued its budget goal-setting process Thursday that began on Jan. 28, exploring in greater detail some of the suggestions like charging user fees to tax-exempt properties for city services and privatizing trash collection.

City financial projections show a $2.7 million deficit in 2007 under the current budget conditions, though Salomone said the city aims to keep a fund balance equaling about 5 percent of the general fund, or about $1 million, meaning the actual amount to make up would be about $3.7 million. Some of that would be offset by funds from the state, however -- Salomone said the city is set to receive up to $800,000 from the state in revenue.

To read the full report, see Friday's edition of The Citizen