WHITBY -- Residents will be hit with a 6.6 per cent increase in their municipal taxes this year after Town council passed the annual budget.
The hike passed Wednesday night translates into a $75 increase in taxes per house assessed at $280,000.
Councillors decreased the hike from the original 7.2 per cent increase that had been presented by staff last month. That increase was based on a target set by council last fall.
By the end of the night items had been added to the budget -- including funding to keep the Central Library open on additional Sundays and cash for an accessibility co-ordinator if the Town can’t use the Regional resource -- which caused the increase to go up to 7.3 per cent.
Mayor Pat Perkins asked why councillors had spent time throughout the night asking to add budget items, then wanting a lower tax rate overall. She said council funds projects that are too high-end and has to start working in a more realistic framework. An example she used was parks that are too expensive.
“You can’t have your cake and eat it too. You have to make some decisions,” she said.
Councillors voted 5-3 for the rate, with Elizabeth Roy, Shirley Scott and Lorne Coe voting against. Those councillors had voted for a 5.9 per cent increase. To get to 5.9 per cent from 7.3 per cent would have meant finding $712,000 from reserves or other funds.
“At the end of the day 7.3 per cent is not going to support our demographic,” said Coun. Coe, who pointed out the growing number of seniors in town who do not have disposable incomes.
The rate means that staff will have to find the extra funds elsewhere, part of which will likely come from hydro money. A staff report about where the extra money is going to come from will be presented to council at a later date.
“Obviously I don’t like to pay more taxes,” said Jim McGrorey, a resident who stayed until the end of deliberations. But Mr. McGrorey said he thought they should have listened to the advice of treasurer and acting CAO Ken Nix and not depleted reserve money to lower the tax rate.
Mayor Perkins asked what would happen if the council decided to use reserve money against the recommendation.
The effects of a such a move would not be seen until 2013-2014, when the long term reserve fund would be depleted, Mr. Nix said.
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