Snow removal costs, rising fuel prices and reduced parking revenue projections mean the city's 2008 tax hike may have to rise past seven per cent, council learned from the city treasurer Wednesday.

The news wasn't well received by councilors, with Innes Councillor Rainer Bloess suggesting the most palatable option may be to scrap what's been done so far and start fresh.

Late last year, city council arrived at a preliminary tax hike for 2008 of 4.9 per cent, which left Mayor Larry O'Brien haunted by his "zero means zero" campaign promise that catapulted him to a surprising election victory 18 months ago.

However, even that figure is proving to have been too optimistic with the city still waiting and hoping for about $24 million in provincial funding for some health care and other provincially mandated services, a near record snowfall that has left the snow-clearing budget $23 million in the hole, rising fuel costs for municipal vehicles, and reduced revenue projections for city parking meters.

Mayor O'Brien had already stirred fresh debate with his suggestion last week of a one-time $50 levy on city households to help offset the snow-clearing deficit.

Add it all up, and city treasurer Marian Simulik told city council the 4.9-per-cent property tax hike for 2008 may have to rise as high as 7.7 per cent. The grim assessment left matters up in the air on a day that was supposed to see council finalize the budget.

The tax hike would come in addition to a nine-per-cent jump in water and sewer rates, higher transit fares and other user fee hikes.