The proposed tax increase for Port Moody residents has been chopped after a special finance sub-committee managed to shave $752,000 from the 2008 operating budget.

The cuts, which were endorsed at a special council meeting Tuesday and forwarded to the finance committee, mean the proposed increase is now 3.51%.

At the budget town hall meeting in January council was grappling with a proposed 8.61% increase, mainly because of jumps in police and fire department budgets and increased labour costs.

“We have to look at ways to keep the tax increase to a manageable amount,” Mayor Joe Trasolini said yesterday. “And I don’t think there was any appetite in the community to accept a tax increase higher than the 3% range.”

Requests from various city departments amounted to $24 million, or a $1.8-million increase over 2007. New construction growth is contributing about 3.17% to city coffers and helping to bring taxes down.

The finance sub-committee, which included Trasolini and councillors Mike Clay and Meghan Lahti, found the $752,000 in savings partly by eliminating vacant positions and shifting roles to other employees.

“There has been some shuffling and re-alignment of people,” Clay said. “We eliminated some positions but we haven’t eliminated any people.”

The fire department budget was reduced by $50,000 for overtime costs. Several new firefighters have been hired in recent years, as well as a new deputy fire chief whose job it is to find efficiencies in the department.

Council will also be asking for a $50,000 reduction in the Port Moody Police department budget.

Clay said the revised operating budget is in line with the community’s public safety priorities and re-examining the things the city can, and can’t, afford right now.

Last year’s property increase was 5.11% and, according to the draft financial plan presented in January, smaller tax hikes are anticipated over the next five years: 3.31% in 2009, 4.26% in 2010, 3.77% in 2011 and 3.08% in 2012.

The 3.51% figure for 2008 may still change over the coming weeks as council finalizes the budget. Under the Local Government Act, the budget must by adopted by May 15.

spayne@tricitynews.com