The town of Fort Frances has a huge financial hole to dig out of.
A draft operating budget, released Tuesday night, has the town in a deficit position of over $2.2 million dollars.
Treasurer Laurie Witherspoon says left untouched, it would mean a 22 per cent tax increase.
CAO Mark McCaig says council and administration will be working hard over the next few weeks to bring that number down.
The deficit does includes the money the town has to rebate resulting from a lowering of Resolute Forest Products assessment, but not the town's share of costs toward the district's social services programs or its capital requirements.
Council will review the operating budget at a meeting March 4.