With time running out a polarized group of London councillors is seeking a balance between budget cuts and keeping a lid on taxes for residents.

At 11:30 Tuesday night, the tax increase sits at 2.4 per cent, or $58 more for average homeowner, but decisions on the biggest issues have yet to be made.

Council already met behind closed doors on Tuesday afternoon to discuss a proposed $1.5 million cut to city staff.

Also high on the agenda are how to spend last year's budget surplus and how to fund more than $20 million in economic development projects.

In total, councillors have about 15 items that need to be finalized.

Tuesday’s deliberations began at 3 p.m., but a draft budget and the associated tax increase may not come until very early Wednesday morning.

Ward 5 Councillor Joni Baechler says council has made things more complicated than needed "This year is the most convoluted budget I have ever seen and staff haven't brought it to us this way...it was council who made it much more difficult than it needed to be."

And while a zero tax increase seems unlikely in 2014, Baechler adds that despite time running out some councillors are still hoping to make it happen.

Budget negotiations are complicated by the fact that 2014 is an election year that could see many councillors and the mayor fighting for their jobs.

Work on the budget has been underway for about a month and final approval is expected on Thursday.