Taxpayers may see seven per cent increase

Reduced funding by the Province may have North Bay taxpayers picking up the tab.

The Ontario Municipal Partnership Fund (OMPF) will reduce funding to North Bay in 2006 and continue reductions until 2009.

Council passed a unanimous vote Monday night, that will have the City’s Chief Financial Officer prepare a report outlining how funding will be reduced by the province.

The reductions are expected to total over $3 million and will have North Bay residents paying a minimum seven per cent increase on their annual property taxes.

However, Deputy Mayor Peter Chirico said the increase could be as much as 14 per cent.

“We will either have to increase taxes or cut services,” Chirico said.

“And there’s not much left to cut.”

The OMPF replaced the Community Reinvestment Fund (CRF), starting in 2005, to help municipalities pay for social programs downloaded by the province.

The fund is broken down into four components: a social programs grant, an equalization grant, a northern and rural communities grant and a police services grant.

Through the equalization grant, North Bay receives over $25 per household while other northern cities receive up to $250 per household.

Mayor Vic Fedeli explained that because of the discrepancy in funding, North Bay would have to fight the funding cuts alone.

“There will be no support from other cities,” Fedeli said.

“We’re not in this together.”