Thursday, December 16, 2010

CIty tax rate to decrease

(posted by KHJ Radio News, December 16/2010)


It turned out it wasn't a popular suggestion, but Fredericton city council has narrowly voted, in principle, to drop the city tax rate. After some contentious debate, council voted 6-5 in favour of dropping the rate by half a cent. Finance committee chair Mike O'Brien suggests the rate could have been reduced even more.

Some councillors felt the idea of a tax cut, originally suggested by O'Brien, was sprung on them out of nowhere. But O'Brien says it was never a secret he wanted a decrease in the rate. The reduction in the tax rate meant a budget shortfall of $288,000. In another testy debate, council decided to take that money from the land sales account to again balance the overall budget.

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