Mayor proposes 16% city budget cut

"This budget is fiscally conservative and reflects these challenging economic times, while maintaining the high level of service consistently provided to our citizens," he told the council at their Tuesday night meeting.

Maxwell pointed out the city is instituting a 1% increase in property tax, bringing local property owners a projected rate of $1.36 per $1,000 assessed value.

Despite the reduced operating budget, the Mayor said the city will go ahead with a number of capital improvement projects, including spending $1 million for design and planning for an expansion of the city's water treatment plant.

Also on the drawing board for next year: the Ship Harbor Interpretive Trail near the WSF ferry landing, and an upgrade of Pennsylvania Ave, which will provide a connection between Jasper Way and Anacopper Mine Road.

"While we are optimistic the economy is gradually improving and will continue this trend in 2010, spending has been reduced in the upcoming budget to plan for the possibility of lower revenues due to a slower economy," he said.