{"id":35345,"date":"2017-08-04T10:50:07","date_gmt":"2017-08-04T14:50:07","guid":{"rendered":"https:\/\/huntsville.dopperonline.ca\/?p=35345"},"modified":"2017-08-04T11:02:16","modified_gmt":"2017-08-04T15:02:16","slug":"much-tax-increase-much-councillors-balk-suggested-2018-guideline","status":"publish","type":"post","link":"https:\/\/doppleronline.ca\/huntsville\/much-tax-increase-much-councillors-balk-suggested-2018-guideline\/","title":{"rendered":"How much of a tax increase is too much? Councillors balk at suggested 2018 guideline"},"content":{"rendered":"

As the 2018 budget discussions begin, councillors have balked at the suggested guideline for next year’s tax levy increase.<\/p>\n

The Town’s Manager of Finance\/Treasurer Julia McKenzie presented a report with the 2018 Budget Guidelines at the July 26 General Committee meeting. The guidelines were 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.<\/p>\n

<\/broadstreet-zone><\/strong><\/div>\n

The guideline brought forward by the working group is a 6.67 per cent increase in the levy for 2018, which represents a budget increase of $899,806. Of that increase, $265,161 is for operations, $400,000 will fund new roads capital projects, and the remaining amount will be applied to the Town’s Capital Asset Management Plan.<\/p>\n

McKenzie said that a 6.67 per cent levy increase would result in an increase in the Huntsville portion of property tax bills of approximately 3.83 per cent. When the District and Education portions are added, that number would drop to 1.41 per cent thanks to a decrease in the Education amount for 2018, which is being transferred to the provincial tax base. A house valued at $246,000 would see an increase of $34\/year.<\/p>\n

But that number didn’t sit well with councillors, including some members of the working group.<\/p>\n

“At budget subcommittee, we discussed this 6.67 and it was not a number the council portion of the committee was most favourable to. The staff portion of committee thought it was pretty workable,” said Deputy Mayor Karin Terziano. “To me, if we need to increase our budget $900,000 every year, which historically is what seems to be happening, I think we are getting outside the boundaries of what we are responsible for doing… the fact that we\u2019ve increased taxes between six and seven per cent the last three years, if there is any catch up to be done, it should be done by now.”<\/p>\n

She added that the increase residents will see on their tax bills varies based on assessed value, and that “on the District side, it\u2019s based on tax-supported budget but there\u2019s a huge percentage of the population that is affected by the rate-supported budget which is water and sewer and garbage, and that drives your taxes up that much more and that\u2019s not being factored in; 6.67 isn\u2019t a number I\u2019m willing to settle with.”<\/p>\n

Councillor Bob Stone said he’d like to see the levy increase drop to somewhere between four and five per cent.<\/p>\n

\"\"While Mayor Scott Aitchison said he is anxious about the increase as well, he pointed out that the capital increase is for roads, which residents have indicated they want to be a priority, and to fund the Capital Asset Management Plan, which is required by the Province.<\/p>\n

“To me this really comes down to the capital infrastructure plan. If you look at the increase, the biggest chunk is in capital,” said Aitchison. “I commend this council. One of the things we have done well, even if we are criticized as being a do-nothing council, we didn\u2019t build the summit centre, we didn\u2019t build the theatre, we didn\u2019t build a park, but what we have done is listen loud and clear to the constituents who said ‘just fix the roads’. So we\u2019ve more than doubled our capital spend on roads. That\u2019s what we should be doing.”<\/p>\n

He noted that the Capital Asset Management Plan still won’t be fully funded following the next budget cycle, and that council could take some time to update the plan.<\/p>\n

“I think we are doing very well at keeping this operation as lean as possible, we have fewer people on the sunshine list than we have in over a decade,” said Aitchison. “There\u2019s nothing saying we can\u2019t take a bit of a breather on getting that Capital Asset Management Plan up to 100 per cent, and maybe we step back and take a look at it, see the assets that we have in fact been able to get rid of through great pains and controversy, and look at other assets that maybe we need to get rid of. So we say we\u2019re going to give the taxpayer a bit of a break this year, do some analysis and see which assets we actually want to fully fund, which we want to get rid of, and maybe also identify those assets we\u2019re not going to fully fund with tax dollars, that we\u2019ll plan to borrow money to replace it if we have to.”<\/p>\n

The Town expects to receive $370,000 from new property assessments in 2018, which Aitchison noted would more than cover the operational increase – which maintains the status quo plus covers mandated increases like the minimum wage hike – and he said he’d like to see the capital increase limited to the equivalent of inflation. \u201cI\u2019m convinced the growth we are experiencing in Huntsville would more than pay for the growing cost of the operation.”<\/p>\n

“I\u2019ll put it out there,” he added to laughter from councillors. “You don\u2019t want to increase taxes six per cent in an election year.”<\/p>\n

McKenzie clarified that assessment growth isn\u2019t included in calculating the levy increase, and said that “if we reduced our spend by $300,000, that would bring us to a tax increase of 1.66 per cent for the Huntsville tax rate.”<\/p>\n

CAO Denise Corry added, “For a reduction of hundreds of thousands of dollars, a reduction in capital is where we are going to have to start.”<\/p>\n

And the biggest capital projects are in roads. “If we are talking 200 or 300 thousand dollars, we are talking a roads project, and we have $16 million of immediate needs roads projects that need to be done now according to our roads needs study,” said Hernen. “We are putting three million a year in, and we are aggressive to be sure we are spending the full three million.”<\/p>\n

To give councillors more time to consider the numbers, and for staff to provide details on what an inflationary increase would look like, the matter was transferred to the next regular council meeting at the end of August.<\/p>\n

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