The province might be raising property taxes, but the city thinks it can keep municipal ones frozen for at least the next two years.
Council passed its 2013-2015 Fiscal Management Strategy last night, and Chief Financial Officer Elsie Hutton says the picture is very stable.
“The budget assumption we’re utilizing is no tax increase with respect to inflationary increases at this point,” said Hutton. “We’re looking at new construction growth only. So, basically holding the line once again.”
That means even if property values go up on existing homes, residents would pay the same amount in taxes.
But the strategy also suggests expanding the city centre redevelopment to a ten-to-twenty year timeframe to make sure it’s all affordable.
Hutton says they’ve calculated low, medium, and high risk scenarios, and all of them keep taxes frozen, and the debt manageable.
“Especially when you’re estimating revenues, you shoot very low – conservative approach,” she said. “And then if you do happen to have additional growth revenues that come on stream, you can allocate those according to the priorities at that point in time.”
Overall, Hutton says their financial position is still strong.
“Actual debt service is considerably low, at 14% [of the limit],” she said. “Our debt limit itself is relatively unchanged.”
“So, a very strong position – but we don’t want to mess that up.”
April 24, 2013
