Draft of 2010 budget brought to table

The Greater Sudbury finance committee presented its 2010 draft budget on Oct.13, but the battle to reduce a possible tax increase is far from over.

Currently, the 2010 Budget carries a 4.3 per cent tax increase, but council has asked staff to trim that number.

The current tax increase estimate comes as a result of a 3 per cent increase due to the base budget, an estimated 0.9 per cent for the outside boards (Police Services, the Health Unit and the Nickel District Conservation Authority) and a 0.4 per cent increase due to funding commitments approved in prior years.

The councillors have aimed to trim the 4.3 per cent increase down to 2 or 3 per cent. This will require cuts to the budget of between $2.4 and $4.34 million.

“Our goal is to reduce the tax increase as much as possible to lessen the burden on local property owners,” said Ted Callaghan, finance committee chair and city councillor.

“At the same time, we have to protect our core services and facilities. Citizens should rest assured that we’ll be taking a very hard look at every proposed enhancement and proposed reduction in this budget.”

The 2010 draft budget carries a gross operating figure of $521.5 million, an increase of roughly $11 million from last year, which represents an estimated assessment growth of 1.5 per cent.

The largest portion of the expenses comes from salaries and benefits, which is estimated to be $191 million, for the city.
Purchased and contract services will come in second at $161 million.

Likewise, the draft budget shown an increase in revenue of $1 million, from $323 million to $324 million.

The city faces some budget challenges for the year, including a decline in payment in lieu of taxes, investment income and transit fees.

By presenting the draft on Oct.13, the finance committee and city staff began a series of deliberations which will end with the passing of a final municipal budget in December.

City staff will return to the Finance Committee on Nov. 23 with options to reduce the municipal tax increase. A final vote on the 2010 municipal budget is tentatively scheduled for December 2009.

All finance committee meetings are held in the council chamber of Tom Davies Square. Meetings in October and November begin at 4:30 p.m., according to a city release.

For more information about the 2010 municipal budget process, visit www.greatersudbury.ca.