The operating budget for Fort Frances has been trimmed a bit.
Administration presented a list of changes for council to review Monday night.
The proposed service cuts and revenue opportunities would have led to a reduction of the budget by about $170,000.
Some items are heading back to administration to massage a little more.
Treasurer Dawn Galusha says acceptance would have brought the potential tax increase to just over five per cent.
“We are presenting a higher tax rate increase than previous in many years. We have discussed a tax rate increase of the Ontario CPI (Consumer Price Index) plus the 1.4% for the asset management plan, being the kind of increase that would be reasonable for any year. I will admit we are above that this year,” says Galusha.
Galusha notes the town’s previous tax rates have not kept pace with inflation, contributing to an infrastructure deficit.
In recent years, the town has taken any surplus from the end of the year and moved it into reserves.
Some council members suggest using a portion of money from the changeover of recycling responsibilities to lower the potential tax increase further.
Administration is advising against that.
“It’s definitely something we could do, but it’s not a save for the community,” says Travis Rob, Chief Administrative Officer.
“It’s pushing your tax increase down the road. This revenue is a two-year thing. After that, it’s gone. So, if we reduce our tax increase today by utilizing this revenue source, we’re not saving the taxpayer. All we’re doing is pushing down the line of when that tax increase is going to hit.”
The town could benefit from a change in property assessment.
The assessed value of all properties has increased by over $3.2 million since 2023.
There is also a decrease in the assessment of facilities exempt from municipal taxes.
Another meeting on the budget is expected later this month.
