Province shorting city on CRF dollars: Chirico

City council is putting the finishing touches on its tax deliberations, and it looks like North Bay residents can expect an estimated four per cent increase.

The community reinvestment fund (CRF) is being held responsible as the major contributor to the tax hike.

CRF was set up by the provincial government in 1998 so municipalities could pay for their own social programs.

Municipalities would be reimbursed for the program budgets as part of the deal with the provincial government.

The provincial government, however, hasn’t fully kept up with its end of the bargain, said budget chief Peter Chirico.

“They haven’t kept up with inflation,” Chirico said during Thursday night's budget meeting.

“Our contract with the province is not being fulfilled.”

North Bay will receive $16.6 million from the CRF, which is the same amount received in 2004. Yet the province reported $38 million more to be distributed through the fund.

“I don’t want it going to another municipality, I want our fair share,” Chirico said.

The city believes it should receive an extra $1 million, based on the $38 million increase.

“The million is a conservative estimate,” Chirico said.

It gets worse.

If the province doesn’t pay the $1 million, North Bay taxpayers can expect a bill in the mail for an additional two per cent tax hike in June.

Chirico stressed that everyone at city hall did their best to make sure that taxes were as low possible.

“We have to let our taxpayers know that we have done our job,” Chirico said.

He explained that the city knows what its costs are, and will fight to get the $1 million dollars that is allocated to them.

“I’ve got no problem getting a bus, and going down there and camping out,” councilor Judy Koziol said.

“We have to take a stand,” Chirico added.

To help further lower taxes, council asked its agencies, boards and commissions to go back and reduce their budgets.

“We can’t keep cutting our budgets,"Chirico said.

The agencies, boards and commissions are asking for a total of $1.8 million compared to their 2004 budgets.