Tuesday night, Lakeshore's municipal councillors will get their first look at the budget for 2023, and so far, it calls for a hefty increase.
The reasons why are rooted in inflationary pressures felt by municipalities across the country, a jump in insurance premiums, and a boom in non-residential construction. Meanwhile, property assessment values haven't been updated since 2016.
Related story: Tecumseh’s Mayor warns “everybody’s feeling the crunch”
"Even with those ongoing pressures, the proposed increases remain below the rate of inflation," said Chief Financial Officer Justin Rousseau.
The proposed spending plan calls for the one-time transfer of $1.02-million from the tax stabilization fund to minimize the impact on property owners. Even with that cushion, the proposed property tax increase is 4.74 per cent for a blended rate of 3.83 per cent.
Dripping Tap (Image courtesy of Mark Greenwood vis Flickr)
Residents can anticipate an increase in water and wastewater charges too. The water rate could go up another 4 per cent, and 9 per cent for wastewater. That's another $13.41 on the average monthly water bill for a home assessed at $275,000, using 210 m3 of water.
Insurance premiums for Lakeshore have shot up 13 per cent, and the municipality witnessed a 25 per cent jump in non-residential construction in the past year. Inflation in December was 6.8 per cent.
"The presentation of the 2023 draft budget comes at a critical time for Lakeshore," said Mayor Tracey Bailey. "On the one hand, we are dealing with significant increases in the cost of our operations. On the other hand, the need to invest in resources to ensure we can achieve our strategic priorities and maintain service levels. We understand that every dollar matters."
Total expenditures in the 2023 budget are $56.7-million, up from $53.5-million last year.
The capital budget, $25.6-million in 2023, includes $11.1-million for Patillo Road, Major Street and Lilydale Avenue, and $2.6-milllion to replace water mains on County Road 22.
The budget set aside $100,000 to review ward boundaries, $150,000 for the wastewater master plan, and $75,000 to resurface the playground at Lakeview Park.
Deliberations on the budget are set for January 30 and 31.
