Woolwich homeowners can expect a 4.3 per cent tax hike next year, led by a special levy to fund infrastructure projects.
Although the budget process is in the early stages, councillors this week gave preliminary approval to a framework that includes inflationary-level spending increases and no cost-cutting measures. Taxes would rise 1.8 per cent to cover operational spending, while another 2.5 per cent hike is earmarked for repairs and upgrades to roads, bridges and water pipes.
Based on current numbers, that 4.3 per cent hit would amount to another $25 to $30 a year on the township portion of the average tax bill, using an assessed value of $254,000. Director of finance Richard Petherick warned, however, that the 2013 bills will be based on new assessment levels from the Municipal Property Assessment Corporation (MPAC), making it difficult to know for sure just how big the impact will be.
As well as the tax increases, growth will bring the township another three per cent increases in revenues, representing about $231,000, he added.
Led by Coun. Julie-Anne Herteis, there was some discussion of trying to keep the hikes below levels recommended by staff, but her suggestion to cut the increase in half was quickly swept aside. Even the idea of cutting the infrastructure levy from 2.5 to 2 per cent found no traction.
“What does 0.5 per cent represent?” asked Mayor Todd Cowan.
“It represents the people of the township,” she said in response to the dismissive tone. “Every penny adds up.”
People are getting tired of tax increases, she argued.
“Everybody needs to save right now.”
Coun. Allan Poffenroth fared no better when he suggested looking at cuts in order to control spending and reduce the tax burden.
“I think reducing some services wouldn’t necessarily be the end of the world. It could be a good thing,” he said, noting he had not specifics in mind, though suggesting a hiring freeze.
The township hired two new positions this year. New hires for 2013 would be talked about in future budget deliberations, said Petherick.
Staffing costs, accounting for more than half of operating expenses, have risen significantly in recent years. There’s been no talk of eliminating unnecessary or unproductive positions thus far in the budget process, with a staff report identifying no such changes while noting the township is heading into another round of contract negotiations with its unionized workers, members of the Canadian Union of Public Employees (CUPE) local 1542.
Poffenroth’s call for looking at cuts found some support from Coun. Mark Bauman, who suggested the township could find service levels that could be lowered. The 1.8 per cent operating budget increase would simply involve breaking even in the absence of some reduced spending, he noted.
There was more common ground on the infrastructure levy, however. Councillors agreed 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.
For Bauman, it’s a matter of looking ahead to the future and setting aside money to deal with tomorrow’s needs. The 2.5 per cent levy is a “preventative measure.”
The levy, introduced with the 2012 budget, brought in $179,000 this year. For 2013, that number will be $372,000. Due to compounding, 2.5 per cent each year would reach $1 million by 2016, for a running total of $2.9 million over the five years.
Whatever the total tax increase for next year – right now it’s 4.3 per cent – the figure should remain constant throughout the budget process, said Coun. Bonnie Bryant, noting the increase crept up as deliberations went along for the 2012 budget.
“I think we have to stick with whatever we set. We can’t keep changing it on taxpayers.”
The tax increases proposed by Woolwich council 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, with the school boards get 30.
