Council decides on property tax rate hike

At tonight's special budget meeting, Sault Ste. Marie City Council narrowly voted to increase property taxes by 2.83 percent.

Supporting the motion to increase the urban residential rate were Councillors James Caicco (Ward 1), Bryan Hayes (Ward 3), Susan Myers (Ward 2), Terry Sheehan (Ward 2), Steve Butland (Ward 1) and Pat Mick (Ward 3).

Against the rate increase were Councillors Lou Turco (Ward 4), David Celetti (Ward 5), Ozzie Grandinetti (Ward 6), Lorena Tridico (Ward 4), Frank Fata (Ward 5) and Frank Manzo (Ward 6).

Mayor John Rowswell broke the tie, voting to support a rate increase that would mean about $61 more in taxes on an average home in the Sault.

The mayor also came up with an idea to refinance three city loans for road and sewer repairs so more money would be available in this budget year.

Rowswell said his idea would add about $457,000 to this year's budget, a budget he said was fraught with challenges.

City Council decided not to accept or reject the mayor's idea until staff had time to crunch the numbers.

One of the main reasons the mayor wants more money in the budget is to provide funding to remove ice and hard-packed snow deposited in driveways when roads are graded.

Council decided to explore that idea further in September, before the next snowstorm season.

Ward 2 Councillor Terry Sheehan described conditions leading up to City budget 2007 as the perfect storm.

"Our assessments were frozen for two years: We cannot rely on the increasing value of homes and businesses," said Sheehan. "We're relying on creating our plans from old data and meanwhile downloading of services continues so those costs are still rising as are the costs of operations."

But Sheehan, a member of the finance committee, said council has reason to hope for more money next year with an increase expected in the Ontario Municipal Partnership Fund grant.

"Assuming, of course, that the present government stays in office and doesn't significantly change its formula," said Sheehan.

Councillors Manzo, Tridico and Celetti all said they've received calls from constituents saying they can't afford any tax raises.

"I've heard from people who were concerned they would be taxed out of their homes," said Ward 4 Councillor Lorena Tridico.

Ward 2 Councillor Susan Myers said that a zero percent increase in taxes was unrealistic.

"Other municipalities in Ontario are raising taxes more than ours," she said. "Most have come in at over three percent."

Ward 3 Councillor and Finance Committee Chair Bryan Hayes said this budget holds the line on rising expenses, providing no new money for additional services.

In addition to approving the tax increase at this tonight's meeting, City Council passed a resolution to provide the Economic Development Corporation with $246,000 to continue operations while it's under review.

Council also accepted its finance committee's recommendation to have an outside agency review operations of the EDC at a cost up to $40,000.

During the meeting, Council did a complete turn around on the issue of continued funding for a youth development officer with a show of hands initially supporting the move but a final decision against it.

Council turned down supplemental funding for all applying agencies except the Norgoma and Soo Finnish Ski Club, who received $15,000 and $7,500 respectively as one-time funding.

"All these are equally important requests," said Ward 1 Councillor James Caicco. "I just can't see a way to choose one or two and disappoint the rest. It's better to just tell them all to come back next year when things are better."

Council also voted to take $822,000 from last year's budget surplus with $530,000 going to reduce the tax hike which would have come in over three percent without dipping into reserves.