No one is more keenly aware to tax woes than those who set those taxes for the common folk, and Tay Township council has directed staff to look at keeping a 4 per cent tax rate increase in mind heading toward the 2025 budget considerations.
At a recent committee of the whole meeting, a budget direction of 4 per cent or less as an increase to the municipal tax rate level was directed to staff, but not without thoughtful consideration by members of council.
Within a corporate services report on the matter, anticipated challenges for next year were projected to change the estimated 2025 budget by $1.4 million, with a calculation of a 12.18 per cent required municipal tax rate increase. Before the first draft is presented in late January, staff asked council for a target to aim for.
Treasurer Emmie Carlson added that the blended rate to the Tay resident tax bill would include education and county tax rate percentage, citing a hypothetical 8 per cent municipal tax rate increase to lower to a 5.94 per cent increase for residents, resulting in an estimated $75 increase for an average household; once again, stressing it was merely an example.
Mayor Ted Walker called the outlook “particularly challenging,” noting that Simcoe County had put forward a 3.62 per cent increase during their budget discussions this week. As well, the Ontario Community Infrastructure Fund decreased by $123,000 in funding, while OPP billing was estimated at $383,000 for a potential impact of $19.75 per $100,000 of assessment in Tay.
Haggling began with Walker putting in a bid for a 4 per cent target, but adding that an additional note should go onto tax bills regarding the increased policing costs so residents would be aware of the spike. Coun. Paul Raymond agreed and requested increased municipal insurance costs (at roughly $51,000) should also be added.
Coun. Gerard LaChapelle also suggested a 4 per cent target, noting council had the ability at budget talks to raise or lower that amount.
Deputy Mayor Barry Norris went the other direction, however, putting in a bid for an 8 per cent tax increase target, but emphasizing it was for the same reason as LaChapelle, as council would be the decider on where cuts would be at budget time.
“Even to do with the comparative salary increase, I think that was even a 3 percent increase,” said Norris. “You start flipping in the insurance, the policing cost and everything else – you’ve got to be up there. I'm suggesting you’ve got to be a lot higher than 4% at the municipal level.”
Walker countered: “I would not support anything above 4 per cent. We've got to be realistic, we’ve got to consider that times are tough out there. There's a lot of people struggling financially and if we have to go above that then we're going to have to take a look at services.
“Insurance is going up, OPP is going up, and OCIF is going down. I think when we look at a blended rate, I certainly would not be in favour, even if it comes to that, of a percentage increase above 5 per cent without looking at service reductions where appropriate,” Walker added.
Ultimately, the committee of the whole voted in favour of a 4 per cent or less increase for staff to target.
As well, Walker stated that he’d “heard through the grapevine that there is likely to be some assistance with respect to the policing costs” but left it as a rumour. Recently, Midland Mayor Bill Gordon had shared that the province could likely offer relief for policing costs around the end of November.
The 2025 budget direction report can be found in the agenda page on the Tay Township website.
Tay council meets for committee of the whole meetings every second Wednesday of the month, and regular council meetings every fourth Wednesday of the month. Archives and livestreams of council meetings are available through the Tay Township YouTube channel.
