Those hoping for a tax break in Sudbury shouldn't hold their breath.

The city unveiled its long-term financial plan to council last night, which projects what could be a three per cent annual increase to property taxes until 2027.

Councillor Mike Jakubo says tax says the projected hikes are necessary to maintain the current level of services.

"Tax increases are necessary unless we see some of the assumptions change in this report," Jakubo said.

"For example, greater than expected growth, greater than expected job growth, housing starts. Those type of things."

City approves increased debt capacity

The city is also expanding its debt capacity to pay for large projects.

It currently is able to borrow five per cent of city revenues, but now will be able to take on double that amount.

Mayor Brian Bigger said he's optimistic with the direction of the city's financial plan, and thinks the changes will allow the city to build a new arena or events centre.

"It allows us to look at the opportunity to invest at the same time, and to understand the affordability of investing in our community as well as fixing the assets," Bigger said.

According to the city, Sudbury's current level of residential taxes per household is the fourth lowest in Ontario, in municipalities with a population of 100,000 or more.

Average tax rates stand around $2,400 annually per household, the city said, and is estimating them to be around $3,260 by 2027.