City Tax Hike Remains at 2.65% After Monday Review

City Tax Hike Remains at 2.65% After Monday Review

Overview of the Proposed Tax Levy Increase

Owen Sound’s city council has reviewed its draft operating budget, which includes a proposed 2.65% increase in the tax levy. While the draft budget remains close to the initial proposal, several changes were made during the council meeting held on Monday. These adjustments, including additional funding and contract extensions, do not significantly alter the overall budget but reflect the council’s continued efforts to balance financial needs with community services.

Details of the Tax Increase

As it stands, property tax bills, which combine Grey County and education levies, would see a 2.55% increase. For bungalow owners, this would amount to an additional $9.50 per month compared to last year. The city council had previously set a target of limiting budget increases to between 3% and 5%. Mayor Ian Boddy expressed satisfaction with the outcome, noting that the budget is competitive compared to other municipalities in Ontario.

Budget Adjustments and Council Decisions

During the council’s review, several changes were made to address specific community needs without increasing the overall budget. These included:

  • Adding $10,000 for heritage tax rebates.
  • Allocating $100,000 for Vision 2050, a long-term strategic planning initiative, funded from reserves.
  • Extending a plumber contract without impacting the budget.

Police Budget and Potential Fee Increases

The police board budget was returned with instructions to cap the increase at 5%, down from an initial 5.8%. This will require finding savings of about $50,000, which will be redirected to general capital spending. Additionally, the council is reviewing the possibility of raising bag tag prices before implementing weekly organics pickup starting in June. While this could impact the tax levy, the exact amount will be determined after the fee changes are finalized.

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Future Adjustments and Public Meetings

Further adjustments are expected as employee benefit premiums are finalized, potentially reducing the tax levy increase. A public meeting is scheduled for January 27 to discuss the budget in more detail. Final reviews and the official budget approval are set for February 10 and February 24, respectively. The tax rate bylaw will be passed in April, and tax bills will be issued in May.

This ongoing review ensures that Owen Sound’s budget remains balanced and efficient while maintaining essential services for the community.

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