Chatham-Kent's budget planners are proposing a 6.35 per cent tax increase to cover its 2023 budget.
"This is going to be one of the toughest budgets we ever go through because of purchasing power and inflation," said Chief Administrative Officer Michael Duben. "We need to figure out a way to give council some leeway to decide to continue to support infrastructure."
The 6.35 per cent increase would mean an additional $200 on the tax bill of an average household assessed at $173,000.
In 2022, municipal staff were directed to deliver a 2023 budget with an increase no more than the rate of inflation - currently at 6.85 per cent - and an additional 1.5 per cent capital levy.
"That worked out to allow 6.85 per cent for inflation and a 1.5 per cent increase for capital infrastructure like roads, bridges, and storm sewers in the asset management plan which is 50 per cent funded," said Chief Financial Officer Gord Quinton. "Council's direction was to deliver a budget with an increase no higher than 8.35 per cent."
The proposed 2023 budget calls for 3.56 per cent in spending on infrastructure, which will enable the municipality to maintain its assets, replace aging infrastructure and large bridges, as well as improve storm sewers.
"All municipalities are facing the same infrastructure crunch across Ontario with the lack of funding coming from federal and provincial governments," said Quinton.
Other key areas of focus will include maintaining community assets, service improvements, and other capital projects.
The draft budget, which was prepared by the municipality's administration, will be turned over to the council to decide how to move forward with it. The budget will be presented to the public for the first time Wednesday night.
"We're looking forward to some lively discussions and some community feedback," said Councillor and Budget Chair Brock McGregor. "Then the budget committee will get to work and go through their due diligence to get to a final number."
Community consultations will take place online next week on January 18 and 19, with deliberations to follow the week after. Consultations will be broadcast on the Municipality of Chatham-Kent’s Facebook Live feed.
All budget meetings will be broadcast live on YourTV as well as live-streamed on the YourTV YouTube channel.
Residents are encouraged to send any budget-related questions to CK Communications.
