The $3.5M question

Several city councillors say they're facing taxpayer pressure to lower the city's property taxes next year now that a $25 million contribution to the new hospital has been fully paid off.

The city made its 10th and final payment on the hospital debenture on Saturday and the majority of councillors who spoke to Dougall Media Tuesday say they would prefer to pass that $3.5 million annual savings on to city ratepayers in the 2011 budget.

Coun. Frank Pullia said it's time to give taxpayers a break now that the hospital loan is paid in full. The city has been paying $3.5 million every year for the past ten years on the debenture taken out in 2000, when the new hospital project got underway.

Pullia said he believes it is time to give some of the money back to the public.

"I think there’s a great opportunity to provide the taxpayer with some tax relief. What I’m hearing is that taxes are too high," Pullia said. "I think we should be listening to what we hear."

Coun. Mark Bentz, Brian McKinnon, Trevor Giertuga and Aldo Ruberto all said they feel the same way.

But some councillors, such as Coun. Joe Virdiramo and Coun.Linda Rydholm, say they prefer to take a wait-and-see approach when it comes to the $3.5 million.

Rydholm said the money will be a great cushion coming into the 2011 tax season but it will ultimately be up to the new city council and administration how the money is spent.

Rydhom said while most councillors would want to freeze or lower taxes, people will be asking for roads, a potential new arena and many other infrastructure projects that could use the money.

"It is not, I think, the right time for us to make some sort of a decision until we look at the whole financial picture and the new strategic plan that will be happening for the city," Rydholm said.

Virdiramo said he’s happy to see the debt paid so the city can move forward with other projects. But he said he agreed with Rydholm that it’s too early to say where the $3.5 million should end up.

"I can’t say it will reduce taxes because I don’t know how much it’s going to cost to do the things we have to do in the city," Virdiramo said.