The municipality of Chatham-Kent is eyeing a tax increase between 1.70 and 2.03 per cent for 2019.
The increase was proposed Wednesday night during the draft budget presentation.
Whether the increase will be 1.70 or 2.03 per cent will depend on if the Chatham-Kent will get a $500,000 funding increase from the Ontario Municipal Partnership Fund. The municipality is expected to find out from the provincial government within the next few weeks if they will receive the additional funding.
For a house assessed at $168,300 in Chatham-Kent, a tax increase of 1.70 per cent would equal an extra cost of $48 a year -- a 2.03 per cent increase would equal a $58 annual impact.
Allocated in this year's tax increase is $550,000 towards the third and final year of the bridge funding plan and a one per cent increase in the annual funding for infrastructure. A lack of funding for infrastructure was identified as one of the main challenges facing the municipality.
Chatham-Kent currently has 20 per cent of Ontario's drains and 5 per cent of the bridges, yet only accounts for 0.8 per cent of the province's population.
"This has been a trend over the past few years," said Budget Chair Brock McGregor. "We're spending more every year on infrastructure. Those are significant investments and we're hearing that message loud and clear from residents that that's a priority for them."
Also set aside in this year's budget is funding for an additional 12-hour ambulance shift. If that's approved, more EMS staffing will be available between 2 p.m. and 2 a.m. when the municipality says they have a higher demand for service.
"We know with changing demographics we see more pressures on more emergency services and we have to make sure we're providing the services that the community expects," McGregor said.
Some changes under the new provincial Progressive Conservative party means local taxpayers will be getting a break of nearly $550,000, though. In the 2018 budget, $534,000 was allocated for Bill 148, the Fair Workplaces, Better Jobs Act. The legislation put strict rules in place for things like equal pay for equal work, increase for part-time vacation pay, parental leave top-up and minimum on-call rules. However, when the Progressive Conservative Party took over in 2018, they introduced Bill 47, the Making Ontario Open for Business Act, which reversed many of the impacts made by Bill 148 and froze minimum wage at $14/ hour.
Overall, Chatham-Kent was said to be in a "solid financial position." The debt for the municipality currently sits around $77 million -- that's $9 million less than last year. With $308 million in liquid assets to pay off $207 million of liabilities, the municipality is sitting on $101 million in net assets, which can be used for ongoing operations and unexpected obligations.
Last year, the municipality initially proposed a 2.27 per cent tax increase and eventually settled on an increase of 1.62 per cent.
"Just like someone's expenses at their home, as things increase with inflation, we as municipality face those cost pressures as well," said McGregor. "If you don't have a whole lot of assessment growth, you can't make up for that inflationary pressure."
The next step in the budget process will be community consultation sessions on January 22, 23 and 24. Residents will be able to learn more about the proposed budget, ask questions, and provide feedback to councillors.
Final deliberations will take place January 30, 31 and February 5 (if necessary) from 6 p.m. until 10 p.m. at the Chatham-Kent Civic Centre.