March 2, 2011
Townships council to
choose higher taxes?
by Vance Gutzman
Municipal staff are
recommending Head, Clara and Maria council pass a bare-bones budget
this year.
Council, however, feels differently.
Staff has presented "what we believe is a balanced budget with limited
room for adjustment," according to the budget report prepared for
council.
The proposed budget would see taxes on residential properties (valued
at $100,000) increase by $16.16 to $237.37 - an increase of 7.3 per
cent.
"It's a basic budget that meets needs but has no room for
contingencies, special projects or reserves," the staff report states.
"It maintains current levels of service and programs and allows for no
improvements or increases."
In recommending that as the preferred option, staff also presented
council with two others.
The second would increase the amount of taxes owing per $100,000 of
property value by $28.50, or 12.88 per cent.
That option would net the municipality an additional $20,000 in
taxation revenue, which it could use to increase is reserve funds.
The third option would bring in an additional $40,000 in taxation
revenue, which the municipality could use for "own purposes," by
increasing taxes by 18.47 per cent, or $40.85 for $100,000 properties.
There are a grand total of 83 residential properties in the
municipality valued at over $100,000, and 13 of those are hunt camps,
meaning that would leave just 70 residential properties which would be
affected by 100 per cent or more of any of the tax increases in the
three options.
Despite the staff recommendation that council opt for the 7.3 per cent
tax hike this year, council has opted instead for the third option of
an 18.47 per cent tax hike, with the aim of contributing more funds to
reserves in 2011, and preparing for loss of revenues from railway
payments-in-lieu.
The municipality currently has reserves of $584,208.
"It's prudent fiscal management," says Councillor Jim Gibson.
"And it's still not a great deal of money."
Gibson's right, because even with the 18.47 per cent increase, the
municipality's ratepayers are still on the low end of the totem pole in
terms of property taxes.
"Head, Clara and Maria is in the envious position of having the lowest
residential taxes in the county," the staff report states.
"You would be hard-pressed to find lower taxes in many municipalities
in Ontario, save and except for the much more remote northern
locations."
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