3.9% tax increase proposed for 2016 in Sudbury

Sudbury city councillors tabled a $518 million budget for 2016 on Tuesday with a proposed 3.9 per cent tax increase.

Months of deliberation are expected before the budget is finalized. But if it were to pass as it stands now, households could pay $102 more in property taxes for city services.

At least 1.3 per cent of the municipal tax increase is due to a decline in provincial grants and increases in the cost of provincially mandated programs. Also, 0.5 per cent of the tax increase will go towards paying for an increase in budgets for police, the Sudbury and District Health Unit, and the Nickel District Conservation Authority.

City council froze taxes last year, after pulling $6 million from reserves to fulfill a municipal election promise for Mayor Brian Bigger. The majority of that money will be made back through attrition.

Bigger told CBC's Morning North that he only planned to freeze taxes for one year.

"I don't believe there's an expectation for zero per cent increase for the entire term," he said.

"In fact, I believe people understand that our costs are increasing."

'We don't start at zero'

Interim chief administrative officer Kevin Fowke added that, in situations like this, the city has to make up for what it's lost from the province.

"We don't start at zero, like you might with your family every year," he said.

"It's almost like your income is decreasing, and so you have to make up for that before you even start the exercise."

A tax increase is imminent if the city wants to position itself for growth and prosperity, said Coun. Mike Jakubo, who is also chair of the finance and administration committee. 

About $106 million is being set aside for infrastructure next year. Some of that money will pay for upgrades to Lorne Street and MR 35, between Sudbury and Azilda, as well as the Maley Drive extension.

More than $4 million will be spent repairing local roads.

Budget deliberations will start in January and run until the spring of next year.