Goderich councillors are starting work on the town's budget for 2016.
Mayor Kevin Morrison explains Goderich has not been hit as hard when compared to other rural municipalities when it comes to reductions in the Ontario Municipal Partnership Funding.
"Upper tier funding to municipalities is diminishing every year. And we've certainly been fortunate in some of those areas and police costs are down with the new formula. But it's still costing more and there are more downloads from the provincial and federal levels."
Morrison adds those downloads from the upper tiers of government do affect Goderich and the net result is they have to find about $1 million in savings to avoid a property tax increase for next year.