Dryden City Manager Joe van Koeverden says the municipality must pay back Domtar $5.4-million in taxes under the mill assessment by M-PAC.
He notes they will be looking at paying that back over the course of a number of years.
He stresses the City will be fighting the assessment when officials head down to Toronto at the end of the month.
An update on the City’s finances was provided at last night’s Council meeting.
Van Koeverden says they are looking at a $1-million deficit right now and notes they are experiencing a serious cash flow problem.
The City is projecting to be $8.3-million deep in the line of credit at the end of the year.
Mayor Craig Nuttall says they only have $7.5-million in protection.
Joe van Koeverden says every city department will have to look at cost savings and consolidating jobs in the wake of the Domtar Mill assessment.
There is no word on what the tax rate may be, but van Koevereden says services will be impacted.
Council met behind closed doors yesterday to discuss the 2013 budget.
Councilor Ken Moss says council is doing everything in its power to turn things around
The City is also looking at a reduction in provincial grants according to Councilor Sid Wintle.
Council hopes to have the budget presented to the public in mid-March, but stress they will be meeting around the clock to eliminate the deficit.
Also included in the financial projections are the estimated post-closing costs for the sale of DMTS and Dryden Mobility to the tune of $3.3-million.
City Departments Will Be Under The Microscope
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