Post by Max on Dec 11, 2007 22:08:01 GMT -3
Posted By Denis St. Pierre
Updated 8 hours ago
Nearly 1,000 low-income homeowners in Greater Sudbury will be spared nearly half of the 2008 municipal tax increase, city council has decided.
In approving the city's 2008 budget Monday night, council voted to increase a property tax rebate that has been provided for several years to low-income senior citizens.
The seniors' rebate will be increased to $200 next year, from the existing level of $150. The rebate is provided only to seniors who live in their own homes and who receive the federal guaranteed income supplement.
The city's 2008 budget calls for an average five-per-cent tax hike, which translates into an additional $110 to $120 on the average property tax bill. That means seniors with an average home will bear an increase of $60 to $70.
Increasing the seniors' rebate was proposed by Ward 1 Coun. Joe Cimino during the early stages of council's budget deliberations. A decision on the proposal was reserved until city staff could calculate the impact an increased rebate would have on the overall municipal budget.
On Monday, council was provided with a staff report that projected a $50 increase in the seniors' rebate will cost the city about $41,000, with the additional cost to be absorbed by other taxpayers. About 950 homeowners are expected to qualify for the rebate next year, which would translate into a total cost of $47,500. However, about $6,600 would come off the school board portion of the tax bill, with the other $41,000 coming from the municipal portion. About 14 per cent of the property tax bill goes to the education system.
The $41,000 cost to the city is reasonable, given the benefit for some of the city's most beleaguered taxpayers, Cimino told his colleagues Monday.
In fact, had he known earlier that the cost would be only $41,000, Cimino said, he would have proposed a greater increase in the seniors' rebate. He may revisit the issue for next year's budget deliberations, he added.
"Maybe $50 is not enough and in the future we have to look at something else."
The increased rebate for vulnerable seniors is necessary because the city also has to impose a significant tax increase to fund its service and infrastructure needs, Mayor John Rodriguez said.
"Council is prepared, as much as possible, to lessen the impact" on seniors, Rodriguez said. "We don't want to leave anyone behind."
At the same time, council has to raise taxes to maintain services and increase spending on infrastructure, due partly to the fiscal imbalance between municipalities and the senior levels of government, the mayor said.
"We recognize all the limitations we're faced with, but we also recognize there is a gap in our infrastructure ... That's what this year's budget is all about - closing the gap."
Updated 8 hours ago
Nearly 1,000 low-income homeowners in Greater Sudbury will be spared nearly half of the 2008 municipal tax increase, city council has decided.
In approving the city's 2008 budget Monday night, council voted to increase a property tax rebate that has been provided for several years to low-income senior citizens.
The seniors' rebate will be increased to $200 next year, from the existing level of $150. The rebate is provided only to seniors who live in their own homes and who receive the federal guaranteed income supplement.
The city's 2008 budget calls for an average five-per-cent tax hike, which translates into an additional $110 to $120 on the average property tax bill. That means seniors with an average home will bear an increase of $60 to $70.
Increasing the seniors' rebate was proposed by Ward 1 Coun. Joe Cimino during the early stages of council's budget deliberations. A decision on the proposal was reserved until city staff could calculate the impact an increased rebate would have on the overall municipal budget.
On Monday, council was provided with a staff report that projected a $50 increase in the seniors' rebate will cost the city about $41,000, with the additional cost to be absorbed by other taxpayers. About 950 homeowners are expected to qualify for the rebate next year, which would translate into a total cost of $47,500. However, about $6,600 would come off the school board portion of the tax bill, with the other $41,000 coming from the municipal portion. About 14 per cent of the property tax bill goes to the education system.
The $41,000 cost to the city is reasonable, given the benefit for some of the city's most beleaguered taxpayers, Cimino told his colleagues Monday.
In fact, had he known earlier that the cost would be only $41,000, Cimino said, he would have proposed a greater increase in the seniors' rebate. He may revisit the issue for next year's budget deliberations, he added.
"Maybe $50 is not enough and in the future we have to look at something else."
The increased rebate for vulnerable seniors is necessary because the city also has to impose a significant tax increase to fund its service and infrastructure needs, Mayor John Rodriguez said.
"Council is prepared, as much as possible, to lessen the impact" on seniors, Rodriguez said. "We don't want to leave anyone behind."
At the same time, council has to raise taxes to maintain services and increase spending on infrastructure, due partly to the fiscal imbalance between municipalities and the senior levels of government, the mayor said.
"We recognize all the limitations we're faced with, but we also recognize there is a gap in our infrastructure ... That's what this year's budget is all about - closing the gap."