City council signed off on a proposed budget plan that would see a 3.12 per cent increase in property taxes in 2012 on Monday.
In October city staff predicted a 5.13 per cent tax increase would be needed to maintain services at existing levels. In order to restrict tax increases to 3.12 per cent, nearly $2 million in spending cuts are needed, according to a report to city council by city manager Derek Bates.
"Personnel reductions would total approximately $1.7 million," Bates said.
When asked by Coun. Brian Skakun, Bates said he could not disclose how many jobs would be cut or what impact that would have on city services in an open council meeting.
City council can't wait for the completion of a core service review - started earlier this year - to deal with the challenge posed by this budget, Mayor Shari Green said.
"This is a challenging budget for me," Green said. "It's a right-now challenge we have to face today."
The 3.12 per cent increase would put the tax increase inline with Canadian inflation.
"As long as we stay in the window of inflation, I don't really consider this an increase," Coun. Albert Koehler said.
Coun. Murray Krause said the budget will be challenging for council and city administration.
"Loss of any jobs doesn't sit well with anybody," Krause said. "There will be service impacts, and we'll work on that - but it won't be easy."
"This council has stepped up and made the responsible choice," Coun. Dave Wilbur said. "Council's choice will have immediate impacts. It means job losses, it means compromises for everyone at this table."
City council will officially debate the budget starting on Feb. 15, based on the direction to be provided by council on Monday.
"There is more work to do, and that will happen in February," Coun. Cameron Stolz said.
Mayor Shari Green and members of council will be holding a press conference today to further discuss the proposed budget direction.
