“I want to be ready for the worst,” said 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 would be if the city had to shutter city hall for an unspecified period of time. The move could be a possibility should Hamilton be unable to cut enough spending or raise enough revenue to prevent a double- digit tax hit on residents in 2009.

“There is a housing collapse happening,” said the mayor. “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 with $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 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 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 Eisenberger’s request to investigate financial contingency plans, Hamilton Mountain councillor Tom Jackson, who opposed the recommendation, believes it is premature to consider such ideas. “I don’t know if we are there yet,” he said. “This is not the 11th hour.”

Hamilton Mountain councillor Terry Whitehead echoed 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.”

Eisenberger did not offer an opinion on how long a shutdown would last, or when such a drastic plan would be implemented.

The city already conducts a three-day shutdown of city hall during the Christmas break in December, which translates to a savings of up to $300,000.

Eisenberger said both the federal and provincial governments have been wrestling with their own financial problems in the face of the global economic crisis, so it makes sense for Hamilton to start investigating its own contingency plans in case of future financial problems.

“What happens if the province doesn’t give us the money, or reduces revenues to us?” he said. “Both (governments) are planning on running deficits. We are not allowed to run a deficit. We need to make contingency plans.

“I want to be ready when that happens.”