According to a report that went before City Council Tuesday, the city’s 2019-2022 operating budget will be about $80 million shorter than expected.

The report indicates the city will receive about $11 million less from ATCO, after the company lowered delivery fees.

Those who live in social housing don’t have to pay property taxes thanks to the province, but it means the city will receive $3.5 million less.

Plus, city buildings and vehicles will cost an estimated $6 million to $8 million more to run (if fuel prices remain as they are).

It all adds up to a shortfall of about $20 million a year for four years.

Council has already planned tax hikes for LRT, alley renewal and police in the coming four years.

Mayor Don Iveson said he wants to keep tax increases at the rate of inflation, or about two per cent.

“I think that it’s still possible for us to at least handle the basics with tax increases that match economic growth, in that two per cent range if the economy is growing by about two per cent,” Iveson said. “Gone, I think, are the days of tax increases well above inflation that we saw during that high wage environment and that catchup period for things like neighbourhood renewal.”

Councillor Mike Nickel said the city should make some changes, including cuts to “middle management” to make ends meet.

“If you just take a look at the organizational chart of the city, we’ve had an explosion in middle management, and that’s a concern,” Nickel said. “I think that’s a concern, because I think we should be flattening the organization, more money to the front line, less to middle management.”

Meanwhile, as Municipal Sustainability Initiative (MSI) funding is being reduced, Iveson said he hopes to work with the province to come up with stable funding from the province, before the provincial election in 2019.

“I’m hopeful that we’ll be able to get to that goal and that all political parties will not see municipal infrastructure as a political football, but as a table stake to help grow Alberta’s economy.”

With files from Jeremy Thompson