More OMPF please

A presentation by Deputy Mayor and budget chief, Peter Chirico took place today at the North Bay and District Chamber of Commerce board of directors meeting to discuss a number of issues surrounding the cities budget plan and the 6.7% increase in taxes.

Chirico said he is very aware of the concerns from residency as well as commercial and industrial industries but said the process is necessary if the infrastructure is to receive the attention it desperately needs.

“Quite frankly, several years ago we didn’t have a budgeting process it was more or less like putting out fires. We had the lowest reserves in Ontario for our municipality size with no (shock absorption) whatsoever,” Chirico said.

In 2001 one the city looked at its financial plan and started putting together a new strategy to rebuild the cities fragile infrastructure.

Chirico said at this time the city spent only six million a year on infrastructure compared to this year’s expenditure of 29 million dollars on roads, streets, sewers and other projects like the reparations at Memorial Gardens.

The city plans to finish many of the projects to avoid incorporating them into the 2008 budget.

“Improvements to Algonquin and Front Street will be made in 2008, with an increase of approximately 1 million to the water and sewer budget. So, we will continue to make sure expenditures are in the proper areas and replace the infrastructure,” Chirico said.

He coined them need projects, not want projects as some of the infrastructure is 70 to 80 years old.

Chirico said the city could easily have a zero percent tax increase but that would mean cutting services and ignoring the economic and infrastructure problems that inevitably must be dealt with.

Chamber of Commerce President, Mark King mentioned that the chamber has not attended many budget meetings.

“We (The Chamber of Commerce) have been watching the budget meetings from a distance and I think we will form some sort of committee for the next budget deliberation,” he said.

Chirico urged more people to come forward to meetings. “We have opened up our budget process and we urge the public as well as chamber members to attend these meetings and provide input and voice their concerns,” Chirico said.

The meetings begin approximately November and end around February.

More OMPF needed for North Bay

The Ontario Municipal Partnership Fund (OMPF) provides municipalities with an equalization grant which is supposed to offset the cities downloaded social services costs.

In essence Chirico said the city receives 1.5 million dollars a year from OMPF, funding that has not changed in the last five years.

“At the same time our social services costs have risen so much that we are being short changed by that fund (OMPF) approximately 2.4 million dollars a year. That’s 2.4 million that tax payers are paying out to social services and more,” Chirico said.

All this comes after three years of warning from the city about the cost increases to social services.

On January 6, 2006 Chirico came up with a proposal which could potentially increase funding in North Bay.

“If we take a look at our social services area coverage: Sturgeon Falls, Mattawa and all the outlying area it would likely increase our funding, however our assessment base for the equalization grant is covered based on the assessed documents of the city of North Bay only,” Chirico said.

The city proceeded to ask OMPF to consider assessments form the surrounding areas too, but there has been no response since January 6.

“I feel it is short changing the tax payer because it makes up almost 5% of the city’s tax base right there. I believe this is where the fight is,” Chirico said.

He said the city cannot afford to cut any more programs or services, “It’s time to rebuild the services… City Council is working on this issue and we need the chamber’s assistance to drive this home.”

Chirico said North Bay may have been able to lower the six and half percent tax increase with more funding, yet the city is hopeful that the assessment growth which has taken place due to waterfront development and other projects will have more impact in 2008.