“I want to be ready for the worst,” said Mr. Eisenberger in an interview. “We have to know about all the options.”

In the wake of the current world economic crisis — and the huge financial problems both senior levels of government are grappling with — the mayor asked senior staff to study what the financial impact to the city would be if it had to shutter city hall for an unspecified period of time in case Hamilton is unable to cut enough spending or raise more revenue to prevent a double-digit tax hit on residents in 2009.

“There is a housing collapse happening,” he said. “That means significant shortfalls in tax revenue.”

And if the city were to dip into its reserves to stave off any slump, he pointed out that Hamilton will be scraping the bottom of the barrel, since it has already used up most of its reserve funds.

“We will have to look at other areas,” he said. Councillors found out this week the proposed average tax increase for 2009 jumped from 9.3 per cent to 9.8 per cent.

If city politicians somehow convince the province to provide Hamilton its $12 million in special funding, plus $14 million from the Ontario Municipal Partnership Fund, the average tax increase would be about 5.1 per cent. Area Liberal MPPs have already told councillors and city staff there will be no more special social services funding in 2009 for Hamilton.

To reduce the average tax increase to two per cent would mean finding a combination of $44 million in savings or additional revenues.

“I’m not in the sky is falling (habit), but the economy is changing,” said Mr. Eisenberger.

A general shutdown of city hall would mean a temporary layoff of staff, he said. It would also mean particular services and programs would also be reduced during the shutdown period, he said.

Emergency services, police and snow plowing would continue, said city staff, during any temporary shutdown.

While the budget steering committee approved Mr. Eisenberger’s request to investigate financial contingency plans, Hamilton Mountain councillor Tom Jackson believes it is premature to consider such ideas.

“I don’t know if we are there yet,” said Mr. Jackson, who opposed the recommendation. “This is not the 11th hour.”

Hamilton Mountain councillor Terry Whitehead echoed Mr. Eisenberger’s decision to look at “every contingency.”

“This year it is so important to look at everything,” he said. “This year is going to be tough.”