Town council has approved a two per cent increase in the monthly rent for sites in the Palmerston trailer park in 2016.
The Town of Minto operates 26 mobile home sites in Palmerston. The current monthly rent of $130 has remained unchanged since 2006, noted treasurer Gordon Duff in a report to council at the Dec. 15 meeting.
The sites are leased on a month-to-month basis. The tenants also pay water and sewer utility bills.
“As you know (we) increase taxes every year and we haven’t increased the rents on these trailers in a long, long time,” Duff told council.
Duff pointed out any changes to the monthly rents are restricted by the Residential Tenancy Act, 2006.
For 2016 the maximum amount of any increase is limited to two per cent.
Council approved a recommendation to increase rates for Palmerston trailer park sites, effective in April, and a further increase on Jan. 1 of each year thereafter at the maximum allowable under the tenancy act.
The additional revenue to the town for 2016 is approximately $608 as the increase to each owner is about $2.60 per month.
“At the 2015 budget discussion council passed a resolution asking staff to look at a rate increase in the trailer park,” the report states. “The amount of money raised by an increase will be quite small, however, costs continue to increase and it is believed that some sort of increase should be implemented.”
The increase will not affect rent at the town’s Harriston trailer park, which is slated to close due to safety concerns.
The Harriston facility originally had 12 units. Due to concerns about the safety of residents in flood conditions, the park is being phased out over a 10-year period which began in 2011. There are only two occupied units left and a third unit is to be removed this year by the town, noted Duff in his report.
