Small municipalities with populations of 5,000 to 15,000 will continue to pay 70 per cent of contract costs with the federal government paying the other 30 per cent.
He told city hall's executive committee last week that higher contract costs, compounded over decades, could end up costing the city tens, even hundreds of millions of dollars.
It represents $49 million in added contract costs, $20 million in additional health care and pension costs and $10 million in anticipated increases for utilities, development and financial aid programs.