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.