Council prepares for spending cuts next year

Sault Ste. Marie councillors agreed last night to have City staff prepare an expenditure reduction plan to ward off what would otherwise be a significant property tax hike next year.

Council approved a resolution spearheaded by Ward 3 Councillor Bryan Hayes and Ward 4 Councillor Neil DelBianco calling for a reduction of 2.5 percent in 2003 spending and a five percent cut next year.

Hayes and DelBianco called for the cuts to be accomplished by focussing on efficiency improvements, as opposed to staff cutbacks.

"There is a fiscally responsible direction to reduce reliance on prior period reserves and surplus as a source of revenue to the point where the intent is to eliminate their use as a revenue source completely in 2004," the resolution stated.

The action was taken after Council learned last week that next year's projected expenditures are expected to rise by several million dollars because of hikes related to wage and benefits contract agreements, the Ontario Municipal Employees Retirement System, and mandated increases for the District of Sault Ste. Marie Social Services Administration Board and the Algoma Health Unit.

The City's financial staff have been directed to submit a cost-cutting report in time for Council's meeting on September 8 of this year.