Chatham-Kent’s projected tax increase for 2025 has been reduced by more than a third of the initial projected levy ahead of this month’s budget deliberations.
As part of Chatham-Kent’s 2024-2027 multi-year budget, council previously approved a proposed 8.17 per cent tax increase for 2025.
However, administration was able to reduce that percentage to 5.96 per cent through cost-saving efficiencies. The tax increase equates to an increase of $211 annually for the average household with a home valued at $176,200.
A presentation on the draft budget was made to councillors and the public during a meeting on Wednesday.
The proposed budget increase includes 1.84 per cent to maintain existing municipal services, which is under current inflation levels of 2.5 per cent.
Another 2.06 per cent of the budget accounts for capital infrastructure costs, which include repairs, rehabilitation and replacement of existing roads, bridges, municipal facilities, and social housing among others. Funds for building new assets to provide service enhancements are also included.
In response to several growing social issues in the municipality, an additional 2.06 per cent of the budget will support investments to address these issues.
Mayor Darrin Canniff said the burden of these costs has been increasingly downloaded to municipalities due to a lack of funding from the provincial and federal governments.
“Social issues such as homelessness, affordable housing, community safety and long-term care are placing increasing demands on our resources,” he said. “If upper levels of government provided their fair share, property tax increases would fall below three per cent. While we continue to advocate for the assistance we need and deserve, the reality is that municipalities are shouldering more responsibilities than ever.”
During Wednesday’s draft budget presentation, councillors also addressed a recent report that many have dubbed the “ugly list.”
Council approved a motion brought forward by Councillor Ryan Doyle on October 7 for staff to draft the report, which looks at ways to cut certain departmental budgets by 7.5 per cent collectively. Several of the cuts include the closures of smaller fire halls, library branches, and museums.
In its report, adminstration stressed that the items on the list of service cuts are not recommended.
“I do not support cutting services in any part of Chatham-Kent,” Canniff said on Wednesday. “I’m in a unique position, I get to see everywhere [in the municipality] and how important the libraries, the museums and the infrastructure are to everyone.”
Budget Chair and Ward 6 Councillor Brock McGregor echoed that sentiment.
“I certainly don’t support a number of those actions and I know a number of my colleagues in Chatham are shaking their heads in saying that as well,” said McGregor. “I have no interest in closing a library or service centre in a rural area and I’m sure many of my Ward 6 colleagues agree.”
Council passed a motion on Wednesday instructing members to notify administration through the municipal clerk if they would like to bring forward any of the items in the report for deliberations.
Budget deliberations are set to begin on November 26 and will continue on November 27-28.
Prior to deliberations, community input sessions will be held virtually next Wednesday and Thursday during a live-streamed event on the Chatham-Kent Facebook page.
