LONG SAULT – After receiving a five per cent tax increase in 2023, South Stormont homeowners will take an even bigger hit to their wallets in 2024. Council approved a 9.5 per cent residential property tax increase as part of their 2024 budget last month.
“This was a very difficult budget process,” said mayor Bryan McGillis in a release. “We are certainly experiencing some financial pressures to meet the needs of our residents with the rising costs experienced across the country.”
The 9.5 per cent tax increase is the latest in a series of larger increases by South Stormont council. Taxes increased by five per cent in 2023, 3.99 per cent in 2022, and 1.85 per cent in 2021.
This year’s tax increase, blended with the approved-in-principle 4.36 per cent SDG Counties tax increase also approved last month, results in an overall 5.9 per cent jump in the residential tax bill. This amounts to $75.26 more for every $100,000 assessed value of a property.
A number of factors contributed to the sizable tax increase. In 2024, many smaller capital projects will be paid for by taxation, rather than a lump sum 20 year debenture.
South Stormont chief administrative officer Debi Lucas told The Leader that previous budgets were supported by using debentures to fund capital projects.
“In 2024, the Township planned not to utilize debentures to fund various smaller capital projects,” Lucas explained. “Given the growth anticipated the funds that may be borrowed see benefits to taxpayers into the future, whereby smaller projects such as vehicle purchases result in no investment into the development growth of the Township.”
Record high interest rates for borrowing impacted the decision to pay for capital work.
“A 20 year loan of $1 million would have an overall cost of interest of approximately $582,000 – costing the taxpayers each year just under $80,000 for 20 years.”
Capital purchases like vehicles and smaller projects will be paid for in 2024 through taxation.
Two major projects planned for this year will not have any impact on the budget.
The demolition and remediation of the Raisin River Heritage Centre in St. Andrews West has a budget for $800,000 and will be paid for out of a reserve already funded for this purpose. The demolition of the land-locked building was delayed by legal challenges to try to save the building.
The other project, a planned $2.9 million renovation to the Long Sault Arena, will only move forward if a federal funding application is approved.
Lucas explained that reserves from left over funding via the Canada Community Building Fund (formerly known as the federal gas tax funding) will be used to pay for the township’s portion of the project, if federal grant funding is approved.
“Council authorized the use of the funds towards the project, only if the application for the second grant is approved,” Lucas said. “If the funds for the second application are not approved the project will not go ahead and the CCBF funds will remain in the reserve account for future use.”
Only 48 per cent of South Stormont’s $20,735,503 budget is covered through taxation. The balance of the funding is made by fees, grants, investments, and land sales. After depleting $6 million from reserves in 2023, the township will fund nine per cent of its budget ($1.82 million) from reserves in 2024.
The Transportation department accounts for 28 per cent of South Stormont’s budget, followed by Parks and Recreation (25 per cent), Administration (17 per cent), Fire Rescue (nine per cent), Waste Management (seven per cent), and Facilities (seven per cent). Planning and Development, Drainage, Building, and Bylaw/Animal Control account for the final seven per cent combined.
Planned projects for the township in 2024 include installing LED lights in 12 facilities – this is paid for by a provincial grant; the second phase of communications upgrades for South Stormont’s Fire and Rescue department; and the installation of concrete accessible walkways throughout the Lost Villages Museum. This too is paid for with a provincial grant.
The township will also purchase a new snowplow in 2024, and has road projects planned for Rombough Road and Dafoe Road.
The 2024 budget is the final year of a three year, multi-year budgeting period adopted by the previous term of South Stormont council.
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