City council in Corner Brook has approved a budget that lowers tax rates, but increased assessments mean only a few homeowners will pay less in 2007.

Corner Brook follows other municipalities in Newfoundland and Labrador — particularly St. John's — in lowering tax rates to offset gains made in property assessments.

Council in Corner Brook voted Monday night to lower its residential tax rate from 12.5 mills to 11.25.

Heftier assessments, though, mean that only six per cent of homeowners will see a drop in their bills.

The mill rate is the tax paid per dollar of assessed value of property, with one mill equal to $1 per $1,000 of assessed value.

Coun. Leo Bruce said the rate cut was the best council could manage.

"We looked at all options. There's just no way" to cut the rate further, said Bruce.

"We've got to look down the road, too. We've got a lot of long-term interests that we need to get done around the city, and it wouldn't be prudent to go below what we did."

Bruce noted that nearby municipalities, such as Deer Lake and Pasadena, did not lower their rates.

Property assessments in the city increased on average by about 20 per cent.

The city says most residential taxpayers will see an increase of $200 or less.

Meanwhile, the town council in Gander also lowered its tax rate on Monday, but is advising taxpayers to expect larger bills.

The town cut its mill rate by a full point, from 11 mills to 10.

Council said larger assessments say many residents still face a small increase, of about two per cent, in their municipal bills for 2007.

Deputy Mayor Zane Tucker, who chairs the town's finance committee, said he took pride in being able to lower rates and still cover the town's expenses.