Mayor Buddy Dyer refused in his state of the city address last month to hike taxes, but suggested increasing costs, especially for health coverage, might drive the budget up next fiscal year. "Our city will have to make the same hard choices that our families do."

Now the city's Chief Financial Officer Rebecca Sutton has told department heads how much to trim spending. "We would like to have a 12 percent reduction plan proposed in at least five to six weeks time."

Sutton says the city is working with unions on the possibility of wage freezes and even job cuts. Those unions represent firefighters, police, laborers and office workers.

The current 2008-2009 budget is $926 million. The budget review process will continue through the spring, with final adoption by September. It will take effect October 1.