Quinte West City Council has asked city staff to make a report on the feasibility of a 3% tax increase in the 2023 budget, for the first year of its four-year term.
This after city staff presented budgets spanning the next four years at a special council meeting on Wednesday.
The original draft operating budget’s tax levy, including 2.5% for capital investments each year, would increase by 8.45% this year on residential properties, trending lower for the remaining three years, averaging 6.75% over council’s term.
In the hypothetical situation that council approved, an 8.45% increase this year, it would mean an extra $270 a year in taxes for homeowners for each $250,000 in assessment value.
The initial budget report sparked a number of people to attend council chambers with the room nearly filled.
There was over an hour of public input from residents expressing concern and discontent over the tax levies in the budget.
“I think that this is just a gross over inflation and looking for it to be four years with compounded interest in excess of 30% is unacceptable for this community,” resident Kim Bullock said in her comments to council.
Quinte West resident Kim Bullock delivering comments on the initial tax increase from the latest draft budget from Quinte West city staff. February 15, 2023. (Photo: Zach McGibbon/Quinte News)
Other comments from residents ranged from concerns about property taxes, water bills and garbage collection.
Residents also suggested different solutions to acquire funds to help lessen the tax with one resident proposing the thought of amalgamation with the City of Belleville.
Mayor Jim Harrison shot down that idea later on in public input, saying that would not be happening any time soon.
“We are not looking at amalgamating with another city with our fire department or our police department,” Harrison told the crowd.
During public input, some councillors made it clear they were also not happy with how high the tax increase would be for residents.
“All our members of council live in Quinte West and we’re not happy with 8.45%. I’ve talked to all of them. We’re not happy with that and we’re going to work to bring that down,” Councillor David O’Neil said following public input from a resident.
Following a 10-minute break, council members then reconvened and thanked the public for attending the meeting saying it was important for residents’ concerns to be addressed.
Council then received information on the latest draft budget.
During the resolution, Councillor Shelley Stedall proposed to have staff look into a 3% tax rate increase for a one year budget.
Stedall says it is tough to move forward on pre-approving community grants and make other related decisions without an agreed upon budget in place.
“What we’re doing right now is we’re setting ourselves up to fail,” Stedall told council.
“We’re setting ourselves up to approve money before we see the final number. So that’s why I’m suggesting we ask staff to come back with a 3% or less tax rate increase and just one year.”
Director of Finance for the City of Quinte West, Caleb DenOuden, said that the tax rate increase would be the same as the tax levy increase based on similar assessments from the previous year.
DenOuden told council that it would be difficult for staff to come up with a report looking at the 3% increase by the March 1 special council meeting on the budget.
City of Quinte West Director of Finance Caleb DenOuden explaining some of the latest draft budget report from city staff. February 15, 2023. (Photo: Zach McGibbon/Quinte News)
Stedall further clarified that she was aware that the report would show what services might see a cut but that the public wants to see a 3% or less tax increase.
“So in order to get there, let’s see what it’s going to be and have staff go back because they’re the experts on this and they can come back and tell us what has to be cut and what has to be changed,” Stedall told council.
It was strongly stressed that this was not a final budget report but more a report to look into the feasibility.
In a recorded vote, council voted unanimously, 12-0, to a motion to have city staff look into a 3% tax increase.
Councillor David McCue was not in attendance and was unable to vote.
Staff will be expected to complete the report by the March 22 council meeting.
The initial draft budget plan can be viewed at the City of Quinte West’s website.
