SYDNEY, N.S. – Facing an estimated $2.5-million shortfall when budget deliberations begin next week, Cape Breton Regional Municipality Mayor Cecil Clarke says service cuts will be needed to balance the budget.
He says any approved cuts will not affect staffing levels of the 800-person municipal workforce and there will be no tax hikes.
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Clarke says part of the budget exercise may mean leaving positions vacant for now.
Municipalities are not permitted to run deficits from year to year, according to regulations set out in the Municipal Government Act.
Last week, the mayor presented a $300-million, five-year capital infrastructure plan that would be cost-shared among the municipality and the provincial and federal governments.
Unlike past cost-shared agreements with each government funding one-third of the cost, this plan calls for Ottawa to pay 50 per cent, and the province and municipality to each pick up 25 per cent of the cost.
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