MAPLETON – A draft budget to be presented at a public meeting this week includes a proposed four per cent increase in the township’s levy for 2022.
The tax rate increase is currently projected to be around 3.75 per cent, however finance director John Morrison predicts that figure could come down once final assessment figures are known.
“I’ve had some good news in the last week, where the assessment actually coming in from some commercial assessment from some of the feed companies … will actually reduce the impact of the tax rate. But I won’t know until the second Tuesday in December, when the roll of return is provided by MPAC (Municipal Property Assessment Corporation),” explained Morrison at the Nov. 9 council meeting.
“While the levy increase is 4.02, the tax rate increase, based on what I know of the assessment base, will be about 3.75% from ‘21 to ’22,” said Morrison, noting the additional anticipated assessment means “you’ll probably see that impact less than 3.75.”
Morrison also pointed out the tax rate increase over the term of the municipality’s current three-year budget plan is expected to average out to 1.5 per cent.
Morrison noted tax rate stabilization reserves are being used to “mitigate the impact of COVID” on the 2022 budget.
Among the factors contributing to the higher expenditures are cost of living increases pegged to inflation rates, which are currently on the rise and an increase of about $88,000 in insurance premiums.
New recreational programming introduced in recent years is also contributing to the increase, along with plans to add an executive assistant in the CAO’s office and a purchasing coordinator to the staff. Morrison said each position adds about $78,000 to the proposed budget.
Morrison said filling the executive assistant position, which has been vacant since 2019 was “deferred through the pandemic,” but is now being proposed “so that we can become more efficient in our organization.”
The draft budget projects expenditures of $15,142,872 in 2022, up from the 2021 budgeted figure of $14,463,736.
Projected 2022 revenue is $5,775,446, up from the $5,476,542 in revenue budgeted for 2021.
Just under $6.2 million in capital expenses are proposed for 2022.
The projected tax levy for 2022 is $8,844,192, an increase of 4.02% from the 2021 budgeted levy of 8,688,290.
Noting water and wastewater system users in Mapleton are already facing a 22% rate increase due to cost overruns on the new Drayton water tower, councillor Michael Martin asked “would there be some way to try and mitigate the out-of-pocket expenses from a property tax side? Can we look at savings somewhere within this budget to try and mitigate the water wastewater expense?”
Morrison pointed out staff had already trimmed expenditures from an earlier draft of the budget, which had projected a levy increase of around five per cent.
“You’ve already directed us back to doing that. And we found about $125,000 in savings. So I think we already followed your instructions from the first round. If there was a need for more we’d have to go back and do it,” he pointed out.
“If you look at the budget, the three-year average, the tax burden (increase) for the three averages $7.15 per $100,000. That’s, that’s pretty good,” noted Mayor Gregg Davidson.
Council accepted the budget report for information. The draft budget will be presented at a community budget workshop to be held at the PMD arena on Nov. 18 at 6pm.
