Higher interest rates are a good thing—for Chatham-Kent taxpayers.
At their meeting being held tonight, Chatham-Kent council will decide tonight whether to transfer $3 million of a surplus to a reserve fund. The $3 million will help fund various initiatives in the upcoming 2024-2027 multi-year budget, rather than raise taxes.
In a report to council, it said that while the Bank of Canada has continued to fight inflation in 2023, interest rates have continued to rise significantly over and above what was included in the 2023 Chatham-Kent budget. This has resulted in a large surplus in interest income for the municipality.
With the higher than anticipated interest rates, along with administration’s investment strategy, a year end surplus of $6.7 million is being forecast for 2023.