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SYRACUSE, N.Y. -- The City of Syracuse is starting work on a new budget that will take effect in July. Already there is talk of new cuts affecting the city's fire department.

The mayor says no final decisions have been made on any budget reductions. However, there are persistent reports that at least two firehouses could face closing as the city reduces the number of firefighters on each shift.

An aging firehouse on East Fayette Street is one of the houses believed to be targeted for a shutdown.

The mayor admits some very tough spending decisions lie ahead.

“It would be a fallacy for people to think that we can continue to pay for the level of service when our revenues are dwindling. So are there going to be cuts? There are going to be cuts across the city,” Syracuse Mayor Stephanie Miner said.

Miner says budget discussions with department heads will begin later this week. She says any talk of specific cuts is "premature."