Woolwich targets 1.5% tax increase for 2014

With a windfall allowing for a pause in a special infrastructure levy, Woolwich is looking at a 1.5 per cent tax hike next year. If that target stands, the average homeowner would pay an additional $9.44 to the township portion of the average tax bill, using an assessed value of $269,000. Councillor

Last updated on May 04, 23

Posted on Nov 22, 13

2 min read

With a windfall allowing for a pause in a special infrastructure levy, Woolwich is looking at a 1.5 per cent tax hike next year.

If that target stands, the average homeowner would pay an additional $9.44 to the township portion of the average tax bill, using an assessed value of $269,000.

Councillors meeting this week gave preliminary approval to a framework that includes inflationary-level spending increases and no cost-cutting measures. The 2014 budget process is still in the early stages.

The numbers that remained after the dust settled were not supported unanimously, with two councillors maintaining the infrastructure levy should still be applied to help cover a backlog of road repairs, bridge replacements and the like.

The 1.5 per cent increase represents the low end of the inflation rate forecasted for next year, with treasurer Richard Petherick recommending a rate of 1.65 per cent, right in the middle of the 1.5 to 1.8 per cent predicted for 2014.

The increase would bring another $123,000 into municipal coffers.

Another $123,000 – equal to a 1.5 per cent special levy – would be applied to infrastructure projects using part of a $320,000 windfall expected from the township’s ownership stake in Waterloo North Hydro.

The fate of the rest of that money will be decided during budget talks, with Mayor Todd Cowan pushing to support a skateboard park, off-leash dog park, splash pad and similar projects.

While supportive of such community projects, Coun. Mark Bauman stressed the importance of the township’s infrastructure, arguing in favour of maintaining an additional levy this year.

“I need to see a lot of money going into our infrastructure deficit,” he said, adding Woolwich needs to “get a grip” on the situation with a “more aggressive” work schedule.

Coun. Julie-Anne Herteis, too, was in favour of such a levy, even at 0.5 to 1 per cent.

Both councillors voted against the final direction given to staff, which would see funding come only from the hydro windfall.

Councillors agreed, however, on the need to continue setting aside money to tackle a growing deficit, as the township falls behind on such projects. Woolwich needs an estimated $63 million just to deal with road and bridge repairs.

On the operations side, a 1.5 per cent tax hike would cover the basic cost increases, including a 1.5 per cent boost in payroll costs, making up about half the budget. The framework approved this week aims to use all of this year’s services as the baseline for 2014, with no discussion of evaluating programs for efficacy or reducing unnecessary spending to provide year-over-year funding for infrastructure.

Where the township has benefited financially from strong assessment growth in recent years, slower development is expected to drop that increase to 1.5 per cent, or about $123,000 in additional revenue. By comparison, growth this year hit 4.5 per cent, bringing in another $350,000.

The tax increases proposed by Woolwich council, still preliminary at this stage, reflect the township’s portion, which typically counts for about 20 per cent of the total property taxes. The region grabs the lion’s share at 50 per cent, while the school boards gets 30.

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