Council wrangles tax hike below 2.5 percent

After deciding to defer their budget meeting until Wednesday evening and hours of deliberations, City Council finally approved the 2012 city budget. City staff originally recommended a 3.7% increase in taxes paid, but council negotiated it down to 2.

After deciding to defer their budget meeting until Wednesday evening and hours of deliberations, City Council finally approved the 2012 city budget.

City staff originally recommended a 3.7% increase in taxes paid, but council negotiated it down to 2.42%.

The change will work out to a $58.22 raise in taxes for the average homeowner.

Initially, city staff advised council to allocate $1.5 million of their $2,174,205 surplus to complete a financial commitment made previously to Algoma University and Sault College.

Instead council approved a motion that will see them pay out $1 million to the post-secondary institutions this year in an effort to lower taxes.

Also helping to lower taxes is $800,000 in adjustments to the budget - including the cutting of 18 summer student jobs.

Stay tuned for more details.

This story will be updated Thursday morning.