Hawkesbury town council met on Thursday, November 7 to discuss the first draft of the municipality’s 2025 budget. That draft included an 11 per cent increase in the tax levy for 2025, but the actual increase will be 9.99 per cent once staff implement directives from council to reduce expenses and the burden on taxpayers.
However, the town cannot avoid one of the extra costs that will contribute to the levy increase. One of the largest factors behind the significant draft levy increase for 2025 is the cost of services from the Ontario Provincial Police (OPP). That increase is $561,769, or 4.5 per cent.
In 2024, the total value of the Town of Hawkesbury’s operating budget was $25,050,975. The first draft of the 2025 budget proposed expenditures of 27,005,082 for the year ahead. The 2024 budget called for $12,543,403 in tax revenue and the first draft of the 2025 budget proposed $13,963,210 in tax revenue be collected from property owners. The levy increase to ratepayers in 2024 was just 4.1 per cent.
The average value of a residential house in Hawkesbury is $166,000. A levy increase of 11 per cent would have meant an additional $276.07 on the property tax bill for a house at that value.
Councillor Antonios Tsourounakis said that if the final levy increase was to be nine per cent, was there any way it could be explained to taxpayers that half of the increase was a result of higher policing costs.
“People have to understand that half that increase is solely due to the increase for the OPP that we have no control over,” he said.
Treasurer Philippe Timbers said that explanation could be included with the tax bills when they are sent out in 2025.
Mayor Robert Lefebvre said he has drafted a resolution to go before council on November 12 asking the OPP to freeze its rates or for the Ontario government to increase Ontario Municipal Partnership funding to better assist municipalities with policing costs.
Tsourounakis said the $200 rebate the provincial government is giving each Ontario resident could have been used for policing expenses instead.
The good news in the 2025 Hawkesbury budget is that no increases are projected for water and sewer rates.
Councillors expressed regret that the Ontario government has not conducted a provincewide reassessment of properties since 2016 to increase the average value of residential properties in Hawkesbury. Timbers explained that one of the reasons Hawkesbury’s average residential property value is low is due to there being many multi-residential properties in town.
Tsourounakis asked if there was any opportunity to find efficiencies in spending and services. Timbers said that has been the practice in recent years but there are some costs which are non-negotiable such as salaries, which are regulated by collective agreements, and policing. Directors of the various departments concluded that this year, there is not much room for increasing services, but to only maintain what is provided.
Tsourounakis said some sort of increase is necessary due to increased operational costs and infrastructure needs.
“Anything in the double digits is pretty substantial,” he remarked, and added it would be extreme to present taxpayers with an increase like that.
Councillor Yves Paquette said the budget is always a difficult decision. Acknowledged taxes will have to increase and half the reason for that increase is the cost of policing.
Councillor Jeanne Charlebois objected to the projected levy increase in the draft budget.
“11 per cent, for me, is no,” she said.
Both she and Paquette expressed concern that 11 per cent this year could lead to increases of further double-digit amounts in future years. Charlebois prefers a levy increase of eight or 8.5 per cent and cuts will have to be made.
“I’m visualizing all of these wonderful things that could be done, but some things can wait and some things cannot,” she remarked.
She suggested staff return to council with other suggestions.
Lefebvre said he appreciates the need to maintain levels of services. He does not want to overuse funds in reserve because it would only defer the need to increase the levy amount later on. He would prefer an increase below a double-digit amount.
Tsourounakis said he would prefer a 9.95 percent levy increase.
“That’s something I could support.”
He said it is about double the police rate increase.
“Half for them, half for us, it’s a little ridiculous,” Tsourounakis said.
Lefebvre said that amount would allow for about $150,000 to $175,000 in spending to be removed from the budget.
“That gives us a bit of maneuvering room,” Lefebvre said.
Chief Administrative Officer Sam Cardarelli acknowledged how difficult it has been this year for staff to prepare the draft budget.
“It seems doom and gloom today, but it seems we’re moving more in the right direction of being more financially stable in order to take care of our infrastructure, our building needs, as well as community needs,” he said.
Cardarelli credited asset management planning and strategic planning projects have also helped with the town’s long-term planning. He said the current focus is to get the town out of the situation it is in.
Lefebvre admitted the situation is difficult as the town attempts to balance its needs with responsibilities to residents.
A second draft of the 2025 Hawkesbury budget with a 9.99 per cent levy increase was to be presented to council on November 12.
