A 2.97 percent tax levy increase is going to be voted on by North Bay city council.
Thursday evening’s general government meeting saw the finishing touches on the 2021 capital and operating budgets, adding an additional $375,000 from the city’s reserve fund to take the levy increase down from 3.55 percent.
In total, the city has created an artificial revenue of over $1.8 million through reserve funds, with the intent of providing relief to taxpayers amid the COVID-19 pandemic.
During the discussion, councillor Mark King wondered why more reserve funds couldn’t be used to provide further relief in the levy, citing concerns for senior citizens who may not be able to keep up with the tax increase.
Margaret Karpenko, chief financial officer, said if more reserves were used in 2021, then it would take longer, and more money for the city to wean itself off the artificial revenue created.
Deputy mayor Tanya Vrebosch added financial support for residents will likely be available through a hardship program, which is also funded through $300,000 in reserve funds.
Council began with an initial tax increase of 4.28 percent, which was whittled down to 3.55 percent as of last week. Staff recommended the additional reserve funds when council expressed interest in seeing an increase that “began with two”.
Included in the operating and capital budget are the estimated costs for the Cassellholme and new community projects, both of which are intended to break ground in the spring.
Both projects are still awaiting tender to determine what the actual construction costs will be.
There will be a special committee meeting held on Monday, December 10 to discuss the financial details of the two projects.
