Tax, fee hikes required to balance Gander’s budget
Revenue shortfalls arise from dip in property assessments
Revenue challenges and cost hikes mean Gander residents and business owners face tax and fee increases this year.
Council’s overall operating budget for 2022 has revenues and expenditures of $19,897,211, an increase of $941,975 more than the 2021 budget, noted Wilson Hoffe, chairman of the Corporate Services Committee, in releasing the budget earlier this month.
Residential property tax mil rates will increase from 7.3 mils to 7.6 mils and will account for $218,000 in new revenue while commercial tax will move from 7.15 mils to 7.7 mils without generating new revenue.
“Mr. Mayor, some people may wonder how an increase in a mil rate would not result in new revenue,” Hoffe said. “For 2022, the overall assessed value of most commercial properties decreased.
To maintain current revenue amounts it was necessary to increase the mil rate …
“While some will see an increase and others a decrease, the effective result of this is that … the total amount of revenue generated from commercial property taxes in 2022 will be the same as 2021.”
The town is home to a new waste water management and inflationary pricing pressures on supplies and services are projected to increase operating costs, which will be offset by adjustments for both residential and commercial property owners. The residential water and sewer levy will increase by $100 per household, while commercial rates will be calculated using the new 7.7 mils rate.
“These adjustments will bring our water and sewer rates in line with those of other municipalities across the province and will generate over $400,000 in new revenue,” Hoffe continued.
Budget 2022 also includes a revised business tax classification system.
“This will be a more equitable system based on the economic principle of ability to pay,” explained Hoffe. “… This will generate approximately $240,000 of additional annual revenue in 2022.”
The big picture means council faced a $1.26-million operating deficit for 2022.
Despite the revenue challenges, a 2022 Roads Program will invest $3.6 million to complete road, curb and sidewalk, and water and sewer projects.
An additional $1.29 million is required for other capital investments and improvements, including a front-end loader; the replacement of three light vehicles, a new accessory building of the wastewater treatment plant, for the storage for replacement parts, supplies and equipment; and the acquisition of a new property suitable for the storage of tools, utility vehicles, and municipal equipment with optional space for community programming.
Council remains committed to expanding, maintaining and upgrading recreation infrastructure, said Hoffe.
“In 2022, we will be investing more than $1 million for capital improvements and new equipment purchases, including $570,800 to complete the new soccer and track and field facility located on Magee Road.”
Council will contribute $382,830 toward the $751,518 in costs of new fire apparatus and equipment for Gander Fire Rescue. Of this investment, $297,312, will be council’s share toward the purchase of a new pumper truck. This amount was previously budgeted in 2021 and carried forward.
The 2022 budget includes $576,357 in new spending, of which $107,000 has been allocated for one-time expenditures, including $32,000 for two six-month term positions to ensure that public health guidelines are followed by patrons of the Steele Community Centre, $25,000 for upgrades at the Eastgate subdivision, and $20,000 for technology upgrades.
The remainder of new spending is directed primarily toward meeting new operational needs.
The entire budget document can be viewed at: https://www.gandercanada.com/en/resourcesGeneral/Budget-2022---Final-Copy. pdf.