With several million-dollar projects on the books for 2006, Penetanguishene Council is raising taxes by about three per cent.
Residents that saw their property assessment increase by the average for this area of 11.3 per cent can expect their taxes to go up by 2.83 per cent, this year. That's about 70 cents for a home worth $171,833, says Penetanguishene Director of Finance, Jim Schaefer.
"Since these tax impacts are dependent on assessment, this actually means tax decreases for commercial, industrial and multi-residential, as well as those residential property owners whose assessment was less than eight per cent,"he added.
The overall budget for 2006 is $10.8 million, of which $5.9 million is the municipality's portion.
Included is $25,000 towards the physician recruitment budget. Almost $5 million will go to the county to pay for things like ambulance, social services, recycling and garbage pick up.
Council also decided not to burden tax payers with wharf debt charges related to dock replacement. Instead, it remains as financed debt that the wharf operation will be responsible to pay back over two years.
"(Budget) is always difficult. It's never easy because there are all kinds of projects you could put in," said Mayor Anita Dubeau. "I know our residents feel that our road system is in dire straits and needs attention and we will be doing some of that this year. But you have to be reasonable and I think we have been. I'm pleased. We've had much discussion and certainly departments had to give and take and that's what it's all about. But overall, I think we have done well."
Capital projects on the books for 2006 include the construction of the new council chambers ($1.8 million); two Robert Street water meter projects (total $1,108,000); as well as the beginning of the sewage treatment plant project which will cost $500,000 in 2006 and continue until 2009 with a total cost of $11 million.
Dubeau points to tough decisions made in the 90s that have allowed council to build up reserves to help pay for these bigger ticket items without affecting taxes too much.
Penetanguishene is also benefiting from a provincial infrastructure loan for the sewage treatment plant project with an interest rate of 4.5 per cent over 15 years.
