Just in time for the holidays, Halifax Regional Council has kicked off what promises to be a lengthy debate about proposed tax hikes.

Municipal staff have suggested a couple of options, including one that would see property taxes go up by almost three per cent next year.

Another possibility is slashing services, but both options make big-ticket items, such as a new CFL stadium, a long shot.

Council met Tuesday at a hotel while council chambers got some tech upgrades. Regional councillors kicked off a debate on recommendations from high-level staff that it's time to jack up taxes.

There are two options on the table, including one of nearly three per cent that is already prompting pushback.

“I can't support 2.9 -- I won't vote for that,” said Coun. Waye Mason.

After keeping increases to a minimum for the last five years, council now has to deal with increased labour costs for police, fire, and other municipal services, and other rising expenses.

The bottom line is tough choices, but reducing services, like roadwork, is a path some councillors aren't willing to travel.

“I know that the Forest Hills Parkway and Caldwell Road have been waiting a long time to see those improved,” said Coun. Lorelei Nicoll.

If council does nothing, the city will be $50 million in debt four years from now -- a bit surreal in a place where construction cranes have been the defining feature on the skyline for years.

“There's so many cranes, and we're such a boom and the suburbs are growing, and how do we need to raise taxes?” said Coun. Matt Whitman.

Mayor Mike Savage said the economic payoff of construction is real, but not immediate.

“When you have new buildings, it takes a while for them to fill,” he said.

The Canadian Taxpayer's Federation says tax hikes should never outpace inflation and big-ticket items should be off the table until the books are in better shape.

“Why are we even having a discussion about a for-profit stadium – a big corporate welfare cheque from taxpayers -- when council can't even make their current budget work without discussing a tax increase?” said Paige MacPherson, the Atlantic Director of the Canadian Taxpayers Federation. “Cutting services is a challenging thing to do, but that's why we elect representatives for ourselves.”

Even those opposed concede some kind of hike is all but certain, but finding the final-number will take time - and much more debate.

Council has one more meeting scheduled at the hotel before heading back to chambers to nail down the details.

That 2.9 per cent option would translate into an extra $56 for the average homeowners in Halifax, and another $44 the year after with another 2.2 per cent.

City officials admit that's more than inflation, but suggest it's comparable to “personal income growth,” prompting some to wonder where they can get a job that sees those kinds of raises every year.

With files from CTV Atlantic’s Bruce Frisko.