Smiths Falls council were presented the first draft budget Monday night and after lengthy discussion, agreed to operate on the presumption of a 3.38% tax rate increase in 2023.
With those increases, there’s still a $1.7 million shortfall in the capital projects budget council will have to chisel down or borrow the difference.
In addition, water and wastewater rates would increase by 5.5% and 3.5% respectively.
The same rates were proposed last year by staff but council opted to have a 2% jump in water and wastewater and no tax increase instead. Of that decision, councillor Chris McGuire said Monday there was “no political appetite,” to raise the rates any higher.
Mayor Shawn Pankow said these are unprecedented times in inflation and they have to respond.
CAO Malcom Morris discussed how the provinces Bill 23 “Build More Homes Faster Act” would impact the budget, specifically in regards to development charges.
Between the expected increases to the tax rate and water and wastewater services, the annual cost increase is $154 for the average home owner.
These increases have not been confirmed for 2023 and could change over the course of further budget discussions.
The current target date for final budget approval is March 27th.
Story by Grant Deme
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