Tax hike whittled to new post-amalgamation low
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The city’s residential tax hike has shrunk to 1 per cent – a record low since amalgamation and lower than most neighbouring cities.
“We are way, way the lowest, by far, since amalgamation,” said Rob Rossini, the city’s general manager of finance, at Monday’s budget meeting.
“I think that’s a significant, significant accomplishment by this council and staff.”
The updated figures mean council is only $6 million away from achieving their target of a zero per cent tax increase – assuming the city receives a $4 million special grant from the province to offset the high costs of social services.
The updated tax hike includes a .1 per cent drop in the city’s overall departmental budgets, a .5 per cent increase for boards and agencies and .5 per cent capital increase.
The budget figures also do not include several council-referred enhancements that will be debated in the next several weeks, which includes items such as the street tree-trimming program and expanding the city’s wireless network.
One of the biggest budget pressures currently facing council is labour costs. The collective agreements of all 25 city unions expired Dec. 31 last year and the city is currently in negotiations with all 25 of its unions.
However, Rossini says the budget includes a provision for those expenses based on an in-camera direction from council.
At the beginning of the budget process, the city was sitting at a 2.4 per cent increase. When Rossini last updated council at the beginning of March, the tax increase was whittled down to 1.6 per cent. Several measures, including a cut to the city’s cost of living adjustment expenses, allowed the city to get down to 1 per cent.
Rossini says staff have been trying to make the cuts as sustainable as possible to ensure the city’s in a good position heading into the 2012 budget.
“Are they 100 per cent iron-clad with no risks? No,” said Rossini. “But everything that we’re bringing to you is with an eye that it is sustainable.”
Council will continue to deliberate the budget throughout April and is scheduled to give its final approval April 27.
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