Our price is too high……..That’s the message delivered to Common Council on next year’s budget with a projected shortfall of $4.4 million which would amount to 6.7 cents on the tax rate which is already the highest in the province.
Councillors have been told the equalisation grant from the provincial government will likely be $3 million dollars lower next year with the budget shortfall requiring an increase in the city’s tax rate, service cuts or a combination of both.
There’s also a warning in this financial update of significant tax rate increases over the next 10 years unless the city dramatically changes the way it does business.
Councillors have also been told 60 per cent of the budget, amounting to $90 million, is made up of wages, benefits and special pension funding.
