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City eyes hefty tax increase
Lauren McKeon Northern News Services Published Wednesday, November 12, 2008
On the table: a 4.75 per cent property tax increase; a five per cent water and sewer rate increase for both 2009 and 2010; and a five per cent Solid Waste Management user fee increase for both 2009 and 2010. Carl Bird, director of corporate services, gave a preliminary overview of the proposed 2009-2011 budget during Monday's committee meeting. Copies of the draft budget are available to the public starting next week. If approved, the property tax increase would work out to about $34 for every $100,000 of taxable assessment, or $71 on average per household, said Bird. It would also mark the fifth straight year of property tax increases, totalling 14.77 per cent since the 2005 budget, if the current tax proposal stands. The newest proposal astonished some councillors, including Coun. David McCann, who asked administration to provide examples of comparative increases from other cities. Still, councillors asked more about what was lacking from the budget. The draft budget bore no mention of a proposed increase to $360,000 from $300,000 in core funding for community grants - a subject of much discussion in council over the past weeks. According to Bird, boosting the grant by the requested amount would violate Municipal and Community Affairs' provision that core funding not equal more than two per cent of the general fund. "I'm really concerned, I haven't heard anybody say that before," said Coun. Kevin Kennedy, who sits on the city's grant review committee. "We should actually be pushing back against (Municipal and Community Affairs) for restricting us." The city may still go ahead with the increase, Bird said. It would, however, risk a reaction from MACA. "They would have the minister stand up in the legislative assembly and slap us on the wrist," he warned. Also missing from the general fund are provisions for setting up a 911 emergency phone service (administration expects funding from outside sources to cover these costs), an increase in snow removal funding and curbside recycling. After the city releases the draft budget next Monday, it will hold a special council meeting on Dec. 1 to hear presentations from the public, said Bird. Another review will take place on Dec. 9 and Dec. 10. City administration plans to adopt the budget on Dec. 15. |