Council approves 2012 Capital Budget

North Bay City Council kicked off the New Year once again by initiating the budget process with the city's recommended increases.

Armed with unanimous support from councillors, approximately 42 million dollars will be spent between the water and sewer and the regular Capital budget.

While it's always difficult for the municipality to have an unclouded crystal ball of annual costs, the increase reflects the increased cost for the municipality in doing business with many of its service providers.

The city can't really nail down an exact number of water main breaks, snow plow days, expensive fire and police calls and the list goes on to solidify their costs, they do know everything these days seems to cost more.

It's hard to disagree that many staples to the municipality’s budget including gasoline now cost more than they did but it will be interesting to see if rate payers will be able to stomach yet another cost of living increase.

2012, seen by many as a time to be optimistic, is somewhat overdue for economic growth and revitalization, both nationally and at the municipal level.

Of course, everyone is hoping this to be true in the coming year and hopes that the city's tax and debt increases will be a small burden that acts as the counterweight to get the gears of the economy flowing in a positive direction.

Pessimism, generosity, good faith and optimism all play a role in each person's constitution of reality but with many hard years behind us and the increase of service costs from parking to sport's fields it is met by many with a cold shoulder.

Budget Chief Peter Chirico says that the continued investment in the Capital budget has been something that he's advocated all the way through.

“If the plan is correct, that plan has been validated by outside rating agencies,” Chirico says.

In justification of the spending process, Councillor Chirico says that what the city is trying to do is avoid large spikes in the budget.

“If you go zero, zero, zero, then all of the sudden there's a 12 percent spike”, says Chirico, using the city Mississauga as a prime example of what not to do during budget time.

“Probably the most liquid of all municipalities when it comes to cash holdings and no debt and all of those things, they've had zero percent tax increases for the last 8 years,” he says.

According to Chirico, because of those zero percent tax increases; Mississauga is now looking at venturing into 500 million dollars’ worth of city investment.

“This year they're faced with a 10.2 percent tax increase,” he says, “I don't ever want to see that in North Bay.”

With our own city's budget now determined, areas of the city that will be getting special financial attention this year include Main and Ferguson Streets, Cedar Heights Standpipe and the Airport Industrial Park.

While some of this spending is dependent on other levels of government coming to the table, Chirico says that he is confident that the Federal Governments will continue to invest in infrastructure and community investment.

“It has nothing to do with the Status Quo whatsoever,” says Chirico, “it's about sticking to a plan and not wavering because outside influences.”

“I think that we're doing the right thing. Looking at 15 years down the road, people will see that.”