The city of Fredericton is grappling with how to make up an expected $3.1 million shortfall in next year's budget.

City staff attributed $2 million to revenue losses during the pandemic and $1.1 million to rising costs. 

"It's a very large shortfall," said Coun. Greg Ericson, the chair of the city's finance and administration committee. "It's going to require some extraordinary budget decisions that we don't normally face in a budget."

Council heard loose options from staff at Monday night's budget meeting, which could include raising the tax rate, cutting capital projects or services, or a combination of all three. 

A tax rate increase of four cents would make up the shortfall but most councillors said they were against a rise that high. 

"I cannot support, in good conscience, a tax increase," said Coun. Kate Rogers. 

"I'm not comfortable going to the public, because they too are struggling."

Coun. Dan Keenan also said he was against raising the tax rate. He said the cuts should come from elsewhere.

"We could reduce services temporarily or we could reduce our capital program temporarily." 

Staff will come back to council with ideas on how to make up the shortfall at next week's budget meeting.

"We're going to look deeply into our capital budgets and our capital project priorities in order to determine ways to minimize and reduce this potential deficit down to zero without actually having to raise the burden on the community in undue ways," Ericson said.