For the fourth year in a row, Huntsville’s tax levy—the dollar value of the property tax it will collect from property owners based on projected municipal spending—could increase by more than six per cent if the proposed 2018 draft budget is passed. But when the District and education portions are accounted for, residents may still see only a small increase in their property tax rate for 2018.
At a Special General Committee meeting on December 7, Julia McKenzie, the Town’s Manager of Finance/Treasurer, presented the 2018 draft budget to councillors. It was developed by the Budget Working Group comprising Mayor Scott Aitchison, Deputy Mayor Karin Terziano, Councillor Brian Thompson, Town CAO Denise Corry, Director of Development Services Derrick Hammond, McKenzie, Director of Community Services Kari Lambe, Director of Operations and Protective Services Steve Hernen, and Director of Corporate Services Yvonne Aubichon, after consultation with Town departments.
At the August 28 Council meeting, budget guidelines set the tax levy increase at no more than 5.74 per cent. The draft budget presented last week comes in higher with a proposed tax levy increase of 6.81 per cent or $918,461. The total draft budget is $14,411,961.
A 6.81 per cent levy increase would translate to an increase of 3.29 per cent in the municipal portion of property tax bills. At that rate, for every $100,000 in assessed value there would be an increase of $12 per year in Huntsville property tax. But that’s not the whole story.
In a follow up conversation with Doppler, McKenzie noted that in the District’s 2018 draft budget it is looking at a levy increase of no more than 3.9 per cent. When changes in assessment are included, that would equate to a District tax increase for the Huntsville area of 0.5 per cent. Add in an assumed but as yet unconfirmed decrease in the education portion of the District tax rate—which is being transferred to the provincial tax base—of about 3.0 per cent, and that would reduce the District rate for Huntsville to -2.5 per cent. So if Huntsville’s 2018 draft budget as presented on December 7 is adopted with its proposed 3.29 per cent increase in property taxes, then when the dust settles the overall increase Huntsville property owners could see on their tax bills would be less than one per cent.
There are a lot of ifs in that equation, so the tax rate increase is still up in the air. And requested changes to Huntsville’s draft budget that arose during the December 7 discussion may decrease the municipal levy as well.
Highlights of the 2018 draft budget
Of the proposed levy increase, 2.4 per cent is attributed to capital including a new asset management plan and energy conservation projects to be funded by grants and the Federal Gas Tax.
Dropping an almost $330,000 increase in contributions to Huntsville’s Capital Asset Management Plan—a plan that the province requires municipalities to fund—was flagged as a potential way to decrease this year’s levy.
“Don’t stop contributing money to it but let’s not increase it any more this year,” said Mayor Scott Aitchison. “(Let’s) come up with a far more creative plan that looks at lots of different ways to replace things and give this council and community an opportunity to look at what we have and what we really need to own and what we maybe should get rid of.”
Upcoming capital projects beyond the 2018 budget that were highlighted by McKenzie included:
McCulley-Robertson Park (2019) = $1.9M
Locks Retaining Wall (2019) = $1.1M
Canada Summit Centre Pool (2021) = $4M
Conroy Track (2022) = $1.2M
Centre Street Reconstruction (2023) = $2.7M
Lorne Street Reconstruction (2023) = $1.3M
McKenzie noted that no potential grants have been accounted for in those numbers, a process that Mayor Aitchison took exception to.
“If you are collecting money from the taxpayer off their property tax today, tomorrow or the next day to do a project 10 years from now, and you are collecting the money you know you are going to need to do the project, and then you get a grant, then you’ve overtaxed,” said Aitchison, reiterating the need for a revamping of the Capital Asset Management Plan.
The remainder of the proposed levy increase—4.41 per cent—is due to operating increases, primarily in public works to improve the life of equipment and allocate more resources for winter operations. Ontario’s Bill 148 also has an impact on the levy due to minimum wage and associated increases.
Deputy Mayor Karin Terziano questioned whether the Town needs to own its fleet given the cost of equipment and maintenance.
Also included in the 2018 draft budget are a 1.6 per cent cost-of-living increase for staff ($81,000), the final Council remuneration increase ($7,500), a security gate and swipe card system for the Civic Centre ($20,000), a website update ($100,000 coming from reserves), a commitment to IRONMAN 70.3 Muskoka 2018 ($25,000), a two-year commitment to the Ontario 55+ Games for 2018/2019 ($30,000), and a Community Branding Initiative ($20,000).
McKenzie will present an adjusted draft budget based on councillors’ feedback at the December 19 General Committee meeting. If passed by committee at that meeting, the 2018 draft budget will go before council at its January meeting for ratification.
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Lynn Montgomery says
I saw somewhere not long ago a discussion about spending $48,000 for a proper sign outside the theatre. In my opinion it was very shortsighted not to have done that when theatre was built. I feel that much more than that has been lost in missed ticket sales due to the public , especially tourists, not knowing what is on. Just look at how well Gravenhurst Opera House publicizes its offerings. I hope this expenditure is in the budget.