BRUCEDALE – While only a few members of the public spoke at a special council meeting to gather feedback on Guelph/Eramosa Township’s proposed 2025 budget, it seemed clear that residents think that a tax rate increase of more than 3.5 per cent is too high.
“I do feel that it’s a little high, especially because we had over 4% last year,” said Rockwood resident Tara Paynton. “Adding that onto our property taxes is just increasingly tough for us to stay here in Rockwood.”
Paynton was one of three residents who spoke to provide feedback at the Dec. 11 meeting, but there were close to 10 people in attendance, and murmurs of agreement could be heard as she spoke.
She said her taxes are approaching $7,000 annually for what she called a “tiny postage stamp of a property,” and the cost was making her question living in the village.
“I do feel that there are a lot of people that feel the same way,” she said.
Her comments met with applause from those in the audience.
Paynton’s comments came following presentations from township staff summarizing the proposed budget and providing further details about capital budget requests.
“The total budget for this year is $23.5 million,” township treasurer Linda Cheyne told council and members of the public.
That represents no change from the first time the budget was presented to council at its Nov. 18 meeting; however, the proposed tax rate increase has changed.
When Cheyne first presented the budget in November, the tax rate increase was estimated at 4.38%, but it took into account cost estimates that had not yet been confirmed.
“Since this time, being the end of the year, we get some better numbers in,” Cheyne said.
The revised insurance renewal cost has been confirmed at just over $20,000 less than was estimated, she said.
Salary and benefits costs were also reduced by $6,000 due to a decrease in Workplace Safety Insurance Board (WSIB) rates, she said.
An estimated $25,000 in additional revenue from recreation programming has also been incorporated into this latest draft of the budget, she said.
“With those changes now we’re looking at a 3.79% increase,” Cheyne said.
According to her presentation, of the $23.5 million in operations and capital initiatives proposed in the budget, the township will fund nearly $14.8 million from user fees, penalty and interest charges, and funding for capital through development charges and reserves.
The remaining $8.7 million will come from taxes, along with a proposed $431,000 infrastructure levy.
“We want to continue to support the sustainability of our infrastructure,” said Cheyne. “It’s important to plan for that going forward.”
Factoring in just over $90,000 in new tax revenue due to growth, the township will need to collect an additional $331,342 in 2025 to support its proposed budget, she said.
That means an increase of $11.27, from $297.28 to $308.55, for every $100,000 of residential assessed value.
“If we took a home assessed at $500,000 that would mean an increase of $56.35 a year, or $4.70 a month,” Cheyne said.
The amount doesn’t include the county’s portion of the tax bill or provincial taxes collected for education.
The floor was then opened to public comment, and following Paynton’s comments, Rockwood resident Phil Offierski spoke, commenting first on the “problematic” timing of the 1pm Wednesday meeting.
“It’s disingenuous to see public comment, but then make it at a time that might not work for many people that have jobs,” Offierski said.
He then went on to express concern that too much money was being taken from reserves without enough money going back in to cover future infrastructure needs.
“We’re withdrawing from the reserve funds and not making the necessary investments in the reserve funds,” he said.
“There’s some discretionary items that I find questionable personally,” Offierski said of some of the capital spending requests, naming $250,000 for beach volleyball courts in Marden as an example.
Mayor Chris White responded saying that project will not go ahead unless it can generate enough revenue to justify it.
“That has to pay for itself or it won’t proceed,” White said.
He went on to point out that taxes in the township might be higher than in a neighbouring municipality like Guelph simply because the population is lower.
“Whatever we do is divided by 6,500, 7,000 homes,” he said.
One of the reasons for the proposed tax rate is a recognized need to increase investment in future infrastructure.
“It’s a balancing act of trying to keep taxes lower knowing that the infrastructure deficit is growing,” White said. “We’re trying to maintain our assets at a reasonable tax level.”
White said most of what the township does is mandated, and the discretionary budget items are minimal.
A third Rockwood resident, Ian MacDonald also spoke, questioning a variety of proposed capital projects, including road construction work, a multi-use pad for Masson Park, and speed hump installations.
MacDonald recalled a previous tax increase of “years ago” he said was as much as 6%.
“You told me in this room that “times are good; we can do it, so we’re doing it now,’” he recalled. “I hated your answer, but I went, ya you’re probably right.”
But times are not as good now, and if there was ever a time to be conservative about the increase, this might be it, he argued.
“Cut it down. I know you guys have the ability,” MacDonald said. “I’ve been here since ’91; my taxes are 263% higher than when I came here. . . Throw the community a bone.”
Councillor Mark Bouwmeester said he would like to see the increase closer to 3%, comparing budget time to getting his kids’ Christmas wish lists.
“They’re not going to get everything they want,” he said.
He suggested it should be tied to inflation with consideration for putting some additional money aside for roads and bridges.
Councillor Corey Woods agreed that maintaining roads and bridges was important, but said 3.79 per cent is a little higher than he would like it to be.
Councillor Bruce Dickieson called the number “very reasonable,” noting his concern is falling behind on infrastructure.
Asked how much would need to be removed from the budget to reduce the tax rate increase by 1%, Cheyne told the Advertiser it would need to be reduced by approximately $87,000.
