Town may face 12.7 per cent tax hike
Budget 2008
By Chris Simon

Town staff are looking at ways to trim a proposed 12.7 per cent property tax increase.

The $40 million 2008 Tax Levy Operating Budget was unveiled to the public during a town committee meeting last week. The proposed operating budget - which includes salaries and benefits, administrative, facility maintenance and other standard costs - could also see a nearly 12.7 per cent increase in property taxes, or $111.13 for the average homeowner.

Combined with police and Simcoe County property levies, the average Innisfil homeowner would pay $173.29 more in taxes, compared to 2007 rates.

"This is the most comprehensive budget the town has seen," said CAO Larry Allison. "We have some significant pressures to deal with. We've got a struggle this year, we've got a struggle next year, but we see some light at the end of the tunnel."

However, town councillors have asked staff to find ways to reduce the proposed increase to 9.5 per cent.

"When you compare the level of service in our municipality to others, there's excellent value for our rate payers. I don't think anyone could discount that," said mayor Brian Jackson. "(But) there's always a difficulty convincing the person that pays the bill that the level of service is that good."

Last year, the town's operating budget included a nearly 9.3 per cent property tax increase, costing homeowners an average of $74.60. While taxes are also predicted to climb next year, rate increases will drop beginning in 2010, said treasurer Ian Goodfellow.

The consistent increases are due mostly to the operation and financing of the new town administration and recreation centres, and the increasing rate of salaries and benefits. This year, much of the town's budget has already been determined through previous financial commitments, leaving little wiggle room for savings, he said.

"It is important to note that nearly 40 per cent of the levy increase is solely due to the operation and financing of the new town hall and recreation complex," said Goodfellow.

"A further 22 per cent relates to wages and benefits, (staffing) and compensation issues already agreed to by council," said Goodfellow.

"Staff could have returned this budget at a lower level. However, there have been some factors that have negatively impacted these efforts. For example, the town is required to pay for the maintenance of several railway crossings as a result of the GO train being reinstated."

Goodfellow warns that a reduction in costs could impact town services. Reducing the increase to 9.5 per cent would mean slashing several hundred thousand dollars from the proposed budget.

"There are plenty of reasons why this rate (at 12.7 per cent). We're got several new services for the community, something to celebrate. There's a lot more for the community in the budget this year, compared to last year," he said. "The request to bring the budget down would have to be accompanied by service level reductions. Frankly, there is not enough money in the budget to cut."

However, councillors say a double-digit tax hike is simply unacceptable.

"I'd like to see us under 10 (per cent), if we have sacrifice some servicing," said councillor Dan Davidson. "This town is getting a stateof the-art rec centre, something that's built for the population 10 years from now. They're going to have to give up something to get something."

Staff are expected to present town councillors with a revised version of the budget, including areas for potential cost savings, in February.