After a brief political deadlock, Hawkesbury council has agreed that the tax levy increase in the 2024 municipal budget will be 4.75 per cent.
After four rounds of voting, councillors settled on the number at a budget meeting on Thursday, November 30.
The levy increase in the first draft budget presented on November 15 was 6.47 per cent. At that time, council told staff to try again and come up with a lower increase. On November 30, Treasurer Philippe Timbers presented a new draft with an increase of 5.22 per cent. However, there was not initially unanimous satisfaction on council with that amount.
Councillor Yves Paquette acknowledged the budgetary challenges faced by municipalities and said despite it all, staff managed to develop a budget with a levy increase lower than the inflation rate.
Councillor Antonios Tsourounakis said he received many calls from residents complaining about the potential value of the levy increase in the first draft of the budget. He said it is difficult for municipal rates to decrease in an economy where the cost of everything else is increasing. Tsourounakis said he was hoping for a four per cent increase but understands the future expenses the town is facing.
Councillor Jeanne Charlebois said she is a realist and knows there are challenges with roads and recreation needs.
Tsourounakis moved that the levy increase be 4.25 per cent and Charlebois seconded the motion, which was defeated by council. Councillor Julie Séguin was absent from the meeting.
Paquette said the budget was acceptable as presented and responsible towards residents.
“That’s the reality of things,” he remarked.
Paquette wants to prevent greater levy increases in future years by addressing municipal financial needs proactively. He moved to accept the proposed 5.22 per cent increase and the motion was seconded by Councillor André Chamaillard. However, that motion was then defeated.
Mayor Robert Lefebvre commented a 4.5 per cent increase was a possible option. Tsourounakis said that it would be a suitable compromise and moved for that amount. His motion was seconded by Charlebois, and then defeated.
Lefebvre then suggested council take a break. After a recess of about 10 minutes, council reconvened and a motion for a 4.75 per cent levy increase was adopted unanimously.
In a separate interview with The Review, Lefebvre said the 4.75 per cent levy increase includes the 0.67 change in the tax ratio, and the required adjustment of the multi-residential rate from 1.4 to 1.2.
No capital projects will be delayed or cancelled in the 2024 budget.
“They’re all important,” Lefebvre said.
He noted that the levy increase is still within the rate of inflation and in the past 10 years, Hawkesbury’s levy increase has only exceeded the inflation rate once.
Lefebvre said staff will be able to establish a final budget with a 4.75 per cent levy increase by using reserves or modifying how certain projects are financed.
The 2023 Hawkesbury budget anticipated $24,240,091 in operating revenue and expenses. With a 4.75 per cent levy increase, $1,151,404 would be added, resulting in a total operating budget of $25,391,495.
Lefebvre said that with the 4.75 per cent increase in 2024, every 0.25 per cent of an increase represents about $5.00 on a house valued at $153,000. He estimated the municipal property tax increase will be $80 for a house with that value.
The 2024 Hawkesbury municipal budget will be approved at the next town council meeting on December 11.
