Greater Sudbury projects property tax hikes of more than 6 % in both 2024 and 2025 | CBC News

Greater Sudbury city staff tabled a draft budget for 2024 and 2025 at a Finance and Administration committee meeting last night. 

It’s the first time city council is looking at a multi-year budget process. It’s part of an effort to engage in longer-term planning. 

The proposed budget includes two years of daily operating plans and costs for a four year capital budget. 

If approved as presented, property owners are looking at a 6.7 per cent property tax increase next year and a 6.2 per cent increase in 2025.

Increase required to maintain existing services

Earlier this year, city staff was asked to limit the property tax increase to 4.7 per cent for the maintenance of existing services such as policing, libraries and public health. 

Some agencies, such as Conservation Sudbury and the Greater Sudbury Public Library, have proposed budgets that meet that requirement.

Others, such as the Greater Sudbury Police Service, are asking for an eight per cent increase to cover the costs of hiring additional staff, among other expenses.

To balance the 2024-2025 budget, city staff had to find more than $10 million in savings. 

It did so by proposing adjustments to the city’s revenues and expenses. Some proposed cuts include reducing janitorial services within administrative buildings and slashing some equipment maintenance costs.

Another adjustment would see projected spending on winter road maintenance cut by $750 000. 

“If we’re wrong because it’s a harsh winter then we will have a cost overrun by 2024 or 2025,” said city CAO Ed Archer. “If it’s a mild winter then this is a reduction nobody will notice.” 

Another tactic to reduce spending involves delaying the hiring of new city employees.

Staff believes the city can access additional revenue by increasing user fees for public transit. 

“Our ridership is growing a lot,” said Archer. “A 25 cent increase from the current $3,50 rate will bring in some incremental revenue.” 

A gap in funding for important capital projects

In addition to services, the city must also invest in its asset renewal plan.

Staff hopes council will approve an additional 1,5 per cent special capital levy to accelerate road renewal efforts, and another 0,5 per cent increase to help manage the risk of price fluctuations.

Archer says the city is facing an important investment gap when it comes to infrastructure, and the additional capital levy could help the community start catching up. 

“There’s a gap that was created over four decades, and it’s going to take decades to fix, but this would be a good start,” said Archer.

According to the 2022 study by BMA Management Consulting Inc., Greater Sudbury property taxes continue to be among the lowest in Ontario for comparable properties, and the second lowest of the five major northern Ontario cities, behind only Sault Ste. Marie.

Residents can ask questions and provide feedback during two virtual town halls held in the morning and in the evening of Wednesday December 6th. 

They can also submit their comments online.

The next budget deliberation meetings are scheduled for December 12, 18 and 19. Council is expected to vote on a final budget by the end of the year.