NOTL councillors trying to whittle down 11% tax hike for 2018

Finding more revenues is a priority for Niagara-on-the-Lake councillors who Monday looked for ways to pare down a proposed 11 per cent property tax hike for 2018.

Town treasurer Kyle Freeborn presented the first draft of the operating budget to the finance advisory committee. It included suggestions for cutting expenses for 10 programs and services that would bring down the budget increase to five per cent.

However, councillors focused instead on raising more revenue to reduce the tax rate increase. Staff were asked to report back on potential income from an accommodation tax on tourist lodging and increases to parking fees and user rates for town facilities.

Tax increases in recent years have been in the two per cent range, but several councillors noted that a four to five per cent hike is more likely this time.

“In my opinion it (two per cent) will not be achievable this year,” said Coun. Jamie King. “We need a more realistic goal.”

Coun. Terry Flynn pointed out that transfer payments from senior levels of government have gone down while the costs for infrastructure, wages and insurance are rising.

“If we continue to stay at one to two per cent, for us to look a little better in the public eye, would be a detriment to future councils,” he said.

Most of the suggestions by town staff for cutting costs were rejected by councillors. They were also not in favour of selling the town’s cemetery, eliminating hanging baskets in St. Davids, Queenston and Glendale or reducing the amount of roadside grass cutting.

The committee also voted to keep St. Davids pool open although it needs major repairs and usage was down this summer. Funding for staffing of the Simcoe Park water facility, if it continues to operate as a wading pool, will also stay in the draft budget.

Councillors approved asking staff to look into the impact of reducing the amount of money put into capital reserve funding by $100,000 to

$200,000. Coun. Betty Disero said this funding could be replaced next spring if there is a budget surplus.

The draft operating budget for 2018 is $11.3 million and the draft capital budget is $8.5 million. There was no discussion about the proposed capital budget Monday as Freeborn said it is in a very preliminary stage.

With the first budget draft, the municipal tax portion for 2018 would go up $113 for a typical house worth

$460,131.