City tax increase kept down by councillors

Posted by Sudbury Northern Life Reporter Bill Bradley The city tax increase for the 2009 budget will be less than expected.

Posted by Sudbury Northern Life Reporter Bill Bradley

The city tax increase for the 2009 budget will be less than expected.

That is because city councillors at the priorities committee meeting Thursday decided against adding a capital levy for infrastructure spending on to the already agreed-upon 3.6 per cent tax increase. The water and wastewater tax hike for 2009 is 5.2 percent, but is a separate tax and not an add-on, said city staff.

One city resident informed Northern Life that this tax increase would amount to a $37 increase for 2009 whereas the 3.6 per cent city tax increase amounted to a $100 increase for the homeowner.

Lorella Hayes, chief financial officer for the city, said for a typical home valued at 136,400 in 2009, last year they paid $2,177. The water bill would be for a family of four was $1,066. The 3.6 per cent tax levy increase would be an $85 annual increase in the old city of Sudbury. The 5.2 per cent water and wastewater increase would be a $55 increase.

"So in total tha

t amounts to a $140 increase," said Hayes when both separate taxes are combined into a total.

Not every homeowner pays the water and wastewater rate because they have their own water systems, said city budget chief Coun. Ted Callaghan.

The capital levy amount, which would be added onto the 3.6 per cent proposed by staff, ranged from 0.5 per cent to 2.3 per cent. But Mayor Rodriguez and councillors said the city's economic troubles meant it was not the time to add more on to the taxpayer's burden.

Instead, the finance committee decided to take money out of the city's reserve fund on a one-time-only basis for 2009 to match federal infrastructure requirements. Staff were instructed to come up with a plan for funding infrastructure that did not have to deplete the city's reserve fund, estimated at $90 million. The plan is to pay back any reserve funds required to match federal and provincial infrastructure dollars.

The city has a list of federal projects that require infrastructure spending in a cost sharing arrangement with both the province and federal government.

The Maley Drive Extension will be the top city project directed to the Build Canada fund, said Callaghan.
"Instead of sending in four or five major projects for federal consideration, we will send one, Maley Drive. That way it will not be cut in favour of another project. If it is rejected then we will send in our next priorities," said Callaghan.

Road repair is also a major focus for the 2009 city budget, said Ward 1 Coun. Joe Cimino.

Callaghan said taxes paid by each homeowner can vary.

Complicating matters are province wide property assessment notices by the Municipal Property Assessment Corporation, based on January 2008 market values. Reassessments are being phased in over four years. If one's new property assessment increase is lower than the city average of 13.7 per cent, then expect a tax decrease over the phase-in period, said Cimino. But Ward 4 Coun. Evelyn Dutrisac said many homeowners in her ward are being gouged by the assessments because their properties are worth less now than when assessed. She has started a petition against the reassessments.

Regarding the 3.6 per cent municipal tax increase, the actual increase can also vary.
Out of a total of 55,705 residential properties in Greater Sudbury, 5,197 property owners will see a tax increase of more than $200 in 2009. Another 44,611 will see a tax increase of $200 or less while 5,897 will see a tax decrease over 2008, said a city release.

Another complication is that different parts of the city have different tax rates, depending on levels of fire and transit services.