Taxes could take 9.5 per cent jump
By Chris Simon

Residents could see their town taxes rise by 9.5 per cent this year.

A town committee passed the municipality's nearly $40 million 2008 Tax Levy Operating Budget during a meeting last week. The budget must still be approved by town council. However it would include a nearly $145 per year bump in taxes for the average homeowner, when combined with Simcoe County and police service levies, compared to 2007 rates.

"That's not where I wanted to be, but that's where council wanted to be," said mayor Brian Jackson. "The public perception of taxes are very hard to communicate. It's very hard to communicate the tax for service level."

The annual budget includes salaries and benefits, administrative, facility maintenance and other standard costs.

However, town staff reduced the increase by over three per cent in the last few weeks. Last month, councillors had asked staff to look for ways to reduce the increase from a proposed 12.7 per cent to 9.5.

Jackson says the increases are necessary to maintain town service levels. But the town's tax rates are about average, when compared to other municipalities in the region.

"When you look around us, compared to other municipalities, we provide a very good level of service.

"You've got roads to drive on and police. They don't think about these things, but that's all part of the taxes they pay," he said. "It doesn't matter what it is, if it were a one per cent (increase) it would still bother some. Taxes aren't a pleasant thing."

Most of the increase is being blamed on the operation and financing of the new town administration and recreation centres, and the increasing rate of salaries and benefits.

Treasurer Ian Goodfellow says about $320,000 had to be trimmed from the budget. To help meet the 9.5 per cent, the town borrowed money from its reserves.

But the trim means town residents could be facing a significant tax increase again next year, he said.

"Staff went through with a finer toothed comb and found some further reductions," he said. "As we move forward, there is a very large number looming in 2009. Certainly, there are going to be some harder decisions made in the very near future, in terms of dealing with future operating budgets. But this year (has) a tremendous amount of progress."

Last year, the town's operating budget included a nearly 9.3 per cent tax increase, which cost homeowners an average of $74.60.

Others say services like snow removal, road repairs, and parks and recreation programming would be negatively impacted without the increase.

"We get a pretty good bang for our buck," said deputy mayor Gord Wauchope.

However, some items have been left out of the proposed budget. The town denied a request from their Economic Development Advisory Committee to hire a development officer. That officer would have been responsible for attracting new business to the town, said EDAC representative Michael Smith.

"Look at this officer as a revenue source," said Smith. "This is someone looking to bring businesses to Innisfil. This person would pay for themselves in the first year. The existing town staff is very busy, and doesn't have the same skill set a sales person would."

Wauchope says the hiring would be premature, until council finalizes development plans for Alcona and the Highway 400 corridor.

"By the time Innisfil Beach Road gets developed, it's 2009 or 2010," he said. "In 2008, I cannot justify this. Once the plans are there, I have no problem looking at this again. But right now, 9.5 is a little hard to sell to people (and we'd be) turning around and adding something else on to that."