Council is wrestling with the decision to raise taxes or eliminate city services in order to erase a $1.59 million deficit.
The Catalyst Elk Falls mill closure and a new RCMP contract are the most significant factors in a tough 2011 budget.
The city is feeling the impact of a $1.37 million reduction in taxes collected from Catalyst plus a further reduction of $350,000 as a result of decreased hydro consumption by the mill.
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