A draft budget for the City of Cambridge is proposing a 4.26 per cent tax increase for the average homeowner in the city.
The increase comes despite months of reviews by city staff that have led to cuts in personnel and expenses and shaved millions from the proposed budget.
The reviews began in late 2009 and continued into 2010, and during that time staff expenses were cut by about $5.4 million, while about 19 jobs were eliminated.
In a press release, Budget Task Force Chair and City Councillor Gary Price said these belt-tightening measures have put the city in good position.
"The significant ground work accomplished means the draft budget opens with a proposed 4.26 per cent tax increase which equates to $42.87 per household with a market value of $225,000."
Jim King, chief administrative officer for the City of Cambridge says, "had we done nothing we would have been looking at an 11.5 to 12 per cent tax increase."
However, the increase is still above the rate of inflation, which has many residents upset
But the city says residents made it clear during the last election that they wanted to maintain their services, which means no cut in taxes.
The city is working to build a four-year financial strategy. It is expected to include no growth items, no new staff and flat or reduced spending for 2011.
Despite support from provincial and federal government, including $33 million in stimulus funding, the city still faces a deficit of $153 million over the next 10 years.
This is in large part due to necessary infrastructure spending for items like roads, sewers and community growth that cannot be covered solely through property taxes.
Budget Task Force talks begin Monday, Jan. 17.
