Visitors GuideSt. John's city council has voted down a resolution that would have lowered property taxes. By a 5-3 margin, council decided against a break on residential and commercial tax rates.
Coun. Dennis O'Keefe says the city's treasury is growing at a healthy rate, and property owners deserved
O'Keefe proposed a cut in the respective mill rates of 0.2, which would have shaved about $1 million from city revenues.
For a home appraised at $100,000, the owner's tax bill would have been cut by $20.
"I do believe we can find the money," O'Keefe says, pointing to potential revenue increases from new developments and other government sources.
"It seems that any time there's an increase in revenue, that increase in revenue gets gobbled up pretty easily. I really don't think it's a stretch," he says.
However, Bob Bishop, the city's finance director, said a tax cut would mean consequences.
"With this cut, you'd be looking at cutting back into existing programs. That means cutting back things we do now," says Bishop.
Mayor Andy Wells and Coun. Paul Sears voted with O'Keefe.
The remaining councillors voted against.
Council did approve a hold-the-line approach on property taxes, although it passed a $25 increase to flat rates charge for water-and-sewer services.
The city's residential mill rate remains at 12.2. The general business rate is 18.76 mills.
WebPosted Dec 14 2004 12:14 PM NST CBC Radio
