SUDBURY -- After a marathon meeting Monday, city council in Sault Ste. Marie approved a 3.59 per cent budget increase for 2021.
The roughly $185 million budget is divided between city operations, which accounts for 1.57 per cent of the increase, and outside boards 2.02 per cent. Much of the increase in the outside boards levy comes from the Sault Police Service, which saw an increase of 7.4 per cent driven by a union contract settlement.
Councillors had been looking at an overall tax hike of 5.75 per cent, in part driven by lost revenue and higher expenses resulting from COVID of $1.9 million. Lost revenue from COVID includes:
- Transit user fees $650,200 decrease
- Community Centre user fees $775,000 decrease
- Casino revenue $560,000 decrease
- Municipal Accommodation Tax $430,000 decrease
- Sewer Surcharge Revenue $885,000 decrease.
To get the budget increase to 3.59 per cent, councillors drew from the tax rate stabilization fund, trimmed some programs and capital spending. Mayor Christian Provenzano suggested removing $500,000 from the roughly $7 million winter control fund to get the hike down further.
If the city has a bad winter and the budget exceeds forecast, a reserve fund can be used to make up the difference.
More budget details can be found here.
