New Orleans Mayor Ray Nagin believes that the city will be larger and much safer in as little as five years.

Nagin made the proclamation in front of the City Council Thursday as he projected his budget for the upcoming year.

While anticipating a much smaller city initially, Nagin believes the opportunity to rebuild New Orleans will result in eventual growth.

“Katrina was a moment in time, it has lingering effects but we have the opportunity to rebuild New Orleans,” he said. “(It’s) something that no one else has had the opportunity to do."

However, Nagin realizes hard times will precede good times and he said next year’s budget will be approximately $155 million less than this year’s. He attributes the shortfalls to anticipated trouble collecting property taxes and a large decline in tourism, probably to 20 percent of its pre-Katrina level for next year.

And he anticipates that the cash they currently have can last them only through March, though he is optimistic that loans and federal grants will bridge the gap.

Nagin did add that the eventual growth of the city hangs on one crucial element – better levee protection.

"The rebuilding mission is dependent on many critical issues,” he said. “Levees top the list.”

Nagin said the levee system must eventually be strengthened to withstand category-5 storms, otherwise efforts to rebuild may be jeopardized.

Council members suggested that the city also become more diversified since tourism is expected to be only a fraction of what it once was for some time to come.