A dark cloud is beginning to form over Toronto City Hall, as workers fear their jobs may fall victim to the 2012 operating budget.
City Council has to find $784-million to balance its books next year, and staff members are being told spending will be reduced and revenues will be increased to address the shortfall.
But behind the scenes managers are being prepped for the worst.
An internal memo from City Manager Joe Pennachetti and obtained by 680News says "it is possible that staff will read this to mean that there are job cuts coming."
"Until decisions are made and staff notified, all programs and services continue to operate as they currently do." the memo states.
Bosses have also been given a four-page question-and-answer cheat sheet, designed to address fears of job cuts.
"When will I know whether my job has been affected,?" one question reads.
The response is telling.
"Final decisions on reccomendations arising out of these reviews will occur after (City) Council has considered and approved the 2012 Budget, targeted for January 2012."
Councillor Glen De Baeremaeker said its the first time in seven years he's seen such a memo.
"The big hammer is coming," he said from his office. "People will be laid off, we will be outsourcing, so be prepared."
In an effort to right the ship, financial staffers will conduct three reviews to look for savings and revenues: Core Services (including Toronto Police, EMS, and the TTC;), Service Effiencies; and User Fees.
Pennachetti will also be sending out a newsletter on a regular basis to City Hall staff. 680News obtained the first one.
The city also has a $3-million budget to hire outside consultants to look for what to trim.
Those reviews will rank the city's services for "potential reductions and discontinuation" which could lead to job losses.
"When Rob Ford ran for Mayor he told us he was going to cut the gravy," said councillor Josh Matlow. "I don't think most people in the city thought people's jobs were gravy."
The findings from the reviews will be presented to city in September.