Municipal Tax Levy to Rise by 3.16%

Last month, the 2020 municipal budget was approved, reflecting a 3.16% increase in the Municipal Residential Tax Rate.

This consists of a 1.86% increase to cover the 2020 Operating budget and a 1.3% increase to fund the 2020 Capital budget.   This rate increase is significantly lower than the actual increase in the amount required by the township to operate.  The 2020 cash requirement that will be funded by municipal taxes is $9,568,384, which is 14% higher than last year. Each 1% increase in the residential rate generates an additional $92,737 in tax revenue. Fortunately the municipal tax base grew by roughly 10.8% during the year, as new properties came on line and property values increased, bringing the net levy increase to 3.16%.

The budget conclusion was almost derailed by an urgent and unplanned repair for the Old Millbrook School.  Leaks in both washrooms on the lower level of the building were recently identified, and after investigation, it was determined that the damage was extensive and required immediate attention.  Floor joists must be replaced and the washrooms must be restored to enable the Family Centre to continue to operate in this location.  The unbudgeted $80K+ would have pushed the municipal tax levy increase up almost a full percentage.  The Deputy Mayor made the recommendation to fund this repair directly from the allocation to reserves, reducing this year’s reserve contribution from $1,731,100 to $1,649,637 representing 81% of the 2018 allocation for depreciation instead of the proposed 85%.  This motion was unanimously supported, maintaining the municipal levy increase to the originally proposed 3.16%.  KG

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