Budget talks scheduled to take place at City Hall in Sydney, N.S., were put on hold Wednesday, as municipal staff took a closer look at a proposed residential and commercial tax reduction.
“We're really going to work hard to find a balance in how we can increase services or keep them status quo and provide our best possible taxation to the residents,” said Cape Breton Regional Municipality (CBRM) Mayor Amanda McDougall.
A motion put forward by CBRM Councillor Darren Bruckschwaiger to cut taxes by five per cent seems to be sparking many discussions.
“Council has to do the hard work to figure out if it's possible to reduce taxes across the board by five per cent, and at the same time, not touching wages or services. That will require a lot of creativity,” said Cape Breton University Political Science Professor Tom Urbaniak.
An increase in property assessments and overall inflation has many people scrambling to save a dollar.
Urbaniak says a tax break is one thing, but encouraging more industrial and commercial development will also help lower costs for residents in the long-term.
“Who are growing the most under the tax burden and in some case, maybe offer them more relief," he said. "This is going to have to be done in a very precise way, so you can actually help the residents who are enduring a significant tax burden."
The chief financial officer for the city says millions of dollars will have to be found in the current budget in order to put the proposed tax cuts in place.
The move would come without layoffs or cutting costs to other services.
“We had anticipated giving staff the morning to work through the numbers, but realizing very quickly this morning, it’s going to require a little bit more work,” said McDougall.
Budget talks are scheduled to continue Thursday morning.
