Barrie residents facing a tax hike
Posted By BOB BRUTON
Posted 2 months ago
Barrie homeowners could face a 2.4% property tax increase next year, along with $55 hike in their annual water and sewer bill.
These are the numbers city staff are working with now in preparation for January's Barrie council discussions on the 2010 operating budget and business plan, which sets tax rates.
Ed Archer, the city's general manager of corporate services, said it's no secret why increases are needed.
"Services and service levels are what drive costs," he said.
Next year the city expects to hire more firefighters, see an increase in its transit contract, and must staff its new surface water treatment plant, which will be completed, along with an expansion to the water pollution control plant. Both are multimillion-dollar projects.
The city is also contributing more than $10 million, of a $52.5- million commitment, to the Royal Victoria Hospital expansion and regional cancer care centre.
Georgian College is receiving $500,000, from a $5-million pledge, for its new health and wellness centre.
The new fire station, on the site of the former Barrie (Dunlop) Arena, is to be 80% complete next year, as is the Barrie Public Library satellite in the south end.
Renovations to Eastview Arena are to be complete and Lake Simcoe Regional Airport is being expanded. There's also $2.7 million worth of roadwork in the budget.
Council has directed city staff to maintain existing services, and service levels. But that also means service fees must come close to equalling service costs.
"If we can't afford the services, we are relying on debt or reserve funds," Archer said. "And we are trying to avoid short-term benefits that create long-term commitments."
In other words, the city wants to reduce its reliance on debt financing, in 2010 and beyond.
A number of other factors are also influencing next year's operating budget and business plan.
Barrie's economy, for example, has fared better than those of communities in other parts of Ontario.
And the boundary expansion, 5,664 acres of Innisfil land coming to Barrie in 2010, provides opportunities for growth -in terms of employment and residential land.
Next year's operating budget and business plan also attempts to address areas of high importance and low satisfaction identified in a Environics poll at the end of 2008.
This includes road maintenance, winter and summer, transportation and economic development -attracting business and industry to the city, and creating new jobs.
City staff have done property tax comparisons, to show how Barrie stacks up to cities with 100,000-plus people. Taxes on detached bungalows, walkup apartments, high rises and office buildings were compared.
"Our taxes are lower," said Archer.
He said his staff is awaiting property assessment information before assigning dollar figures to the tax increase.
At this point the 2.4% hike is an upper limit, as directed by city council, for a home assessed at $250,000, and the water/sewer increase is for a typical household.
The 2.4% figure also represents the combined municipal and education portion of property taxes, and assumes no increase in the education taxes, which are set by the province and have not increased in years.
"If they do increase, the rate will be something else," Archer said.
The city's 2010 budget business presentation can be viewed at www.barrie.ca,where there is also information on public feedback.
bbruton@thebarrieexaminer.com
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Property tax increases
Year Municipal/Education 2004 4.04% 2005 6.79% 2006 4.61% 2007 2.98% 2008 3.07% 2009 2.87%
2010 2.4% (projected)
SOURCE: City Treasury Department
