After five draft budgets and little resolution to the problem of a $1.1 million taxation shortfall, Dryden city council passed a deficit budget last week, including a 3.9 per cent tax increase for the residential and commercial sectors.

The vote passed four to one, with councillors Mel Fisher, Gary Case, Mike Wood and Gwen Kurz in favour. Councillor Brian Collins opposed the budget, sticking to previous statements that he would not support a deficit budget. Councillor Dennis Wintle was absent.

The city took a significant financial hit in 2009 as it settled up with the large industrial sector for the taxation years 2006 through 2008 following successful assessment appeals.

With tax rate increases already totaling 26.55 per cent over the past six years, council proved unwilling to pass the bulk of the burden to taxpayers, which would have amounted to a potential 13 per cent taxation increase in 2010.

Instead, the City will pursue a Special Assistance Grant (SAG) from the province. Should that request be denied, the city faces the inevitability of reducing service levels.

“If the grant doesn’t come through, there will be some real belt tightening going on,” said councillor Gary Case. “We’re trying to do two things: to maintain our complete roster of people working for us and we’re trying to move the city ahead in regular fashion.”

Essentially, the city is seeking to buy time until new initiatives like DMTS mobility network, a solar energy park and other developments start contributing new revenue streams.

After faithful adherence to provincial adjustment strategies and demonstrating the community’s willingness to exploit every possible new economic development opportunity, Councillor Mike Wood says the onus is on the province to stick with Dryden.

“We’ve done everything we can as a community to replace the revenue we’ve lost,” said Wood. “We’re basically the poster child for a community that takes its future seriously. If those cuts come, they will come largely as a result of a government that failed to follow through.”

- Chris Marchand