The States of Alderney are warning they may soon have to ask Guernsey for more money to balance their books.
Alderney receives a grant each year from Guernsey, but over the last five years it has been effectively frozen.
Cash reserves have been used to cope with rising wage costs and the effects of inflation in the past.
A shortfall of nearly �190,000 next year will reduce savings to less than �100,000 while ratepayers are being warned that taxes may go up again.
This year's tax was increased significantly to cover the cost of exporting waste to Guernsey.
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