Sudbury Northern Life Reporter Bill Bradley
Councillors grappled with the city's 2009 budget Tuesday night at a finance committee meeting.
It was their last meeting before the new year. A total tax increase could range from 4.0 per cent to 6.3 per cent.
“When you add the water and wastewater rate (5.0 per cent), we could be looking at a double digit tax increase. We need acceptable figures,” said Ward 5 Coun. Ron Dupuis.
Councillors did agree to a staff recommendation base budget reduction of 1.1 per cent, from four percent to 2.9 per cent. That reduction amounted to a chop of $1.9 million without compromising services.
“I instructed staff to cut costs but not to cut services, said Ward 8 budget chief and Coun. Ted Callaghan.
Cuts were able to found in fuel and inflation budget projections, now revised downwards due to the bleak economic outlook, noted Lorella Hayes, Greater Sudbury chief financial officer.
Callaghan said there is still more budget work ahead.
“Council still has some serious decisions to make in 2009 when we come back on Jan. 12 because we still have the capital levy which has to be dealt with and we have the road reconstruction project, the Shave and Pave program, which has to be talked about,” said Callaghan.
Nothing is set in stone though. There still is the capital levy increase for critical infrastructure projects (ranging from .5 per cent increase to 1.5 per cent) plus budget enhancement options that will have to be loaded onto the city taxpayer for 2009, unless other funding sources can be found for them. Enhancements range from hiring five nurses at Pioneer Manor to emergency shelter funding to hiring more engineering staff.
Other enhancements include:
-provide one time funding of $50,000 for the Azilda Library and Rayside Balfour Museum
-$130,000 for traffic lights at Marie Street and Main Street (MR15)
-$49,000 funding for upgrading water lines at Lively Ski Hill
-$100,000 for geese control
That made Ward 10 Coun. Frances Caldarelli nervous.
“I really do not think we have cut back enough on the base budget compared to where the economy may be in six months,” said Caldarelli. There is still an opportunity in January for councillors to cut the base budget, said Callaghan.
That is because there is also the thorny issue of the proposed water and wastewater increase. Though it was slashed by staff from a 5.8 per cent increase to a 5.0 per cent increase many councillors were uneasy about the hike.
“We need to cut the 5.0 per cent back to two per cent. People will lose their homes over this hike,” said Ward 4 Coun. Evelyn Dutrisac.
Councillors were desperate to find savings, and grilled staff about their budgets.
Ward 1 Coun. Joe Cimino insisted that there had to be money saved from the decommissioning of six lift stations due to the completion of the South End Rock Tunnel sewer project.
However, Nick Benkovich, city water and wastewater manager, pointed out that the six units would not be shut down until mid year as the Rock Tunnel project is not quite yet completed.
Once that happens, $50,000 per year mostly in electricity to run the equipment along with long term replacement costs can be offloaded from the budget, he said.
He did caution Cimino that there are are still gaps in his capital budget that could eat up any savings from the shutdown of the lift stations.
