MAPLETON - Council has passed 1.64 per cent property tax increase and the final 2022 operating and capital budget of $14.8 million.
“Council passed 1.64 per cent property tax increase for 2022, which means residential taxpayers will pay a $473 per $100,000 assessment in 2022, an increase of $7.64 over the previous year,” explained John Morrison, director of finance for the township, in an interview.
At Tuesday’s council meeting, it passed the operating and capital budget for 2022, however, council also received word that they have received additional Ontario Community Infrastructure Fund (OCIF) for 2022, so they have decided to postpone the 2022 user fees and charges bylaw to Jan. 11 council meeting.
Mapleton Township received $862,237 of OCIF funding for 2022, double of the grant they received in 2021, which was $399,840.
Council decided to postpone passing the user fees and charges bylaw as they received the OCIF notification late, and staff couldn’t prepare council on where they can allocate the additional funding in time for the finalization of the budget.
“The conversation is still to be had with council and staff as it’s new funding and we need to know where we can best allocate that extra funding to,” said Mayor Gregg Davidson.
“I know our finance director had suggested putting the funding towards the water tower to help us offset our loan, and we’ll discuss that option at a later meeting. We weren’t anticipating this additional funding and we received it late.”
Davidson explained that council is struggling to finalize the water and wastewater user fees and charges as the 22 per cent increase is a “big chunk to bite off for council.”
Mapleton residential users of municipal water and wastewater systems could be facing a 22 per cent increase, around $25 per month, in base rate charges in 2022.
The proposed increase is the result of higher-than-expected costs to build a water tower in Drayton.
In June, council awarded a contract to Landmark Structure Co. to put up an elevated tank in Drayton for $6.1 million, which was 50 per cent higher than an earlier design cost estimate of around $4 million.
The company’s bid, the only one received for the project, attributed the difference to a sharp inflation cost of building materials.
The new rates would mean a combined residential water or wastewater increase of $25.48 a month or 84 cents per day over 2021 rates and cost ratepayers an additional $305.76 annually.
“We have to take direction from the finance director and we have to understand where he is coming from, but I don’t think we fully understand where he’s coming from, which is why we need to have a discussion with staff and the rest of council,” explained Davidson.
“It’s too early to tell where we can put the OCIF funding, but right now, our director of finance has suggested we put it towards the water tower to help with the user fees and charges. We certainly want to put it into projects that’s worthwhile for the community.”
