U. S. cities have been passing through a time in which listening about hacking jobs, soaring taxes and fees and limiting services is not a surprise at all.

But to add to the worries, a report by the National League of Cities has said that US cities will have face further financial strains as tax collections will not recover until after the economy emerges from world’s worst recession since Second World War.

National League of Cities’ director, Christopher Hoene, said, "The worst of the recession's impact for cities still isn't here yet. We'll be feeling it in 2010 and 2011."

However, the report, which was based on the data collected from fiscal officers in 380 cities throught out the country, also said that about 50 per cent of all cities either maintained or rose spending on public safety.

Cities such as Dallas, Los Angeles and Chicago have opted to slash public safety in order to prevent future budget shortfalls.

Cities’ finance officers said revenues might drop by 0.4 per cent by December 31. On the other hand, costs will likely increase by 2.5 per cent.

According to the report, 67 per cent of cities have slashed jobs, while 62 per cent cities have postponed or called off capital projects.

Twenty seven per cent of cities resorted to raise fees on services such as garbage collection to encourage revenue, while 25 per cent increased taxes on property.