The tax rate increase for Erin is set at 0.5% for 2018.
The new number comes after growth assessment was factored into the budget.
When director of finance Ursula D’Angelo presented the final budget to council on Dec. 12, there was a 0.5% decrease in the tax rate.
“The tax rate will be slightly decreasing from 2017 to 2018 and then the infrastructure tax trend will also decrease from 2017 to 2018 and that’s mostly because of assessment,” she said.
Erin’s assessment has grown 70% in the last 10 years, she said. Growth for 2018 was calculated at $283,660.
Since the second draft budget was presented on Nov. 21, there was a $3,300 increase to revenues from the Ontario Municipal Partnership Fund, as well as a contingency of $117,500 included for Bill 148 estimates, and a 1.7% cost of living adjustment.
“What we did is offset the tax levy requirement by the assessment growth … that resulted in a half a per cent tax reduction,” said D’Angelo.
For taxpayers, the reduction would have meant a savings of $7.49 decrease in the town’s portion of taxes for a home assessed at $500,000.
However, council did not want a reduction in taxes.
“We’re just caretakers here, and for the future terms of council, I think us coming in with a negative tax rate is setting up difficulties for the next term of council,” said councillor Jeff Duncan.
He proposed more funds be put into the infrastructure renewal reserve and money be put into sidewalk renewal.
“If I have a $500,000 house and saved $7.50 on my tax bill but I walk out front and the sidewalks aren’t even and it’s a job that’s been marked four times to do, it’s something that should be accomplished,” Duncan said.
Council agreed, directing staff to transfer $66,000 to the infrastructure reserve and take $32,000 from the sidewalk reserve to fund sidewalk maintenance.
That change translated into a 0.5% increase, or $1.49 per $100,000 in assessment.
“I think it’s reasonable,” said councillor Matt Sammut. “We’ve done a great job with reserves, but if we can add another $66,000, I think we’re doing the future some justice and still keeping it at a reasonable level.”
Without taking into account county taxes, Mayor Allan Alls said he expects the Erin increase to be one of the “lowest tax increases” in the county.
In Erin, 88% of the tax base is residential, with 5% coming from commercial, 4% from farmland and 3% industrial.
The 2018 budget, which includes nearly $11 million for operating costs and $2.5 million for capital expenditures, was unanimously approved by council.
The 2018 budget includes $4.3 million in labour costs (plus a 1.7% cost of living increase), $491,000 in hydro costs, $762,000 in transfers to reserves, and a $560,000 transfer to the infrastructure renewal reserve.
The budget also includes the following operating resource requests:
– strategic plan, $40,000;
– video recording of council meetings, $10,000; and
– economic development strategy, $41,000.
General capital projects include:
– replacement of the telephone system, $30,000;
– municipal building security, $25,000; and
– elevator at the municipal office to meet accessibility regulations, $250,000.
Fire and emergency capital projects include $75,000 to be set aside for the future purchase of a tanker and $100,000 for radio reception improvements.
Roads capital projects include:
– culvert 2045 replacement on 4th Line, $625,000;
– Barker Street sidewalk replacement, $60,000;
– resurfacing of Dundas Street West from Erin Heights Drive to Carberry Street, $85,000;
– rural reconstruction of portion of Sideroad 27, $50,000;
– rural reconstruction of Station Street from the new Hillsburgh Library to 6th Line, $200,000;
– surface treatment of 8th Line, Dundas Street to Sideroad 17, portion of Second Line, $180,000; and
– single-axle dump truck and winter sander to replace another tractor unit, $240,000.
Recreation capital proposals include:
– Centre 2000 sewage treatment plan agreement with the Upper Grand District School Board, $20,000;
– Centre 2000 future emergency response centre, $50,000; and
– Barbour Field septic system, $50,000.
Among the economic development capital projects is $300,000 for the Erin Rotary Riverwalk.
Funding for the water department comes from reserves as it is a user-pay service and does not affect taxes. Water capital proposals include:
– Erin Well 8 generator upgrades, $36,000;
– security cameras at water facilities, $10,000; and
– fire hydrant rehabilitation, $16,000.
