2.5% property tax hike guideline proposed

The city’s 2019 budget may impose a tax hike of 2.5 per cent, a new city staff report states.

That’s less than the increase city residents paid this year on their property taxes: it was 2.85 per cent.

Although next year’s budget won’t be hammered out until November – by a newly elected city council – planning for the 2019 budget has already begun.

On Monday, city councillors will consider a new report from Patricia Lester, the city’s commissioner of corporate and legislative services, that outlines why a 2.5 per cent tax increase ought to be considered for 2019.

But before committing to that as a guideline for the 2019 budget, councillors want to hear from citizens.

The public will be invited to speak at a special budget meeting at City Hall on June 6 at 7 p.m.; people will be invited to speak up about their spending priorities.

Next, councillors will be expected to settle on a tax increase guideline at a special budget meeting June 25.

In the meantime, councillors can consider Lester’s suggested tax hike of 2.5 per cent for 2019.

For an average taxpayer with a house assessed at $251,700, a tax increase of 2.5 per cent would add $98 to the tax bill (bringing that bill up to a total of $4,035.91).

Meanwhile, the report points out that the city can expect $4 million from the new casino in 2019.

Shorelines Casino Peterborough is under construction and is expected to open later this year – and it will share some of its revenues with the city.

Since the casino will only open in late summer or early fall of 2018, that’s expected to put $1.35 million in city coffers for this year.

But in 2019, when the casino is open for a full year, the report states that the city can expect $4 million in revenues.

City staff has recommended to council in the past that casino revenues be used for construction projects and not for municipal services.

There are added costs in 2019 related to the casino, however.

Last year, council permitted the developer of the casino to start reconfiguring Crawford Dr. and Harper Rd. at its own expense, with the expectation that the city would pay back the $8million cost to Great Canadian Gaming Corp.

The plan was for the city to pay back half that money — $4 million – in 2018, with the other half due in 2019.

Council will also have to figure out how to finance its part on building a new $54-million twinpad arena and pool complex at Trent University, the report states.

Although the province has promised $18 million toward that project, and the federal government may also offer a grant, the city will still face “a significant financial challenge” in coming up with the balance of the money, the report states.

The minimum wage will reach $15 an hour on Jan. 1, 2019, which will cost the city roughly $100,000 in 2019 (the city employs people on contract to do minimum-wage jobs in areas such as cleaning and security).