Clarington Council has set a target guideline to allow for a maximum proposed increase of 3.95 per cent for the local portion of taxes to pay for the services Clarington provides.
Last year, Clarington is reported to have received $3,038,500 from Federal and Ontario governments in two tranches to offset the impact of Covid-19 on the budget. The council implemented a tax hike of 2.04 per cent last year. (see related stories below).
The guideline was passed at a council meeting on October 18, said a council statement released late last week. It said it is important to note that this is just a planning guideline and not the final budget as staff prepare a budget report which council will consider in January.
It is also important to note that this would not be the increase reflected on residents tax bill since it is divided into three portions (region, Clarington, education), with Clarington’s portion comprising 33 per cent. This means that the 3.95 per cent guideline is equal to a 1.3 per cent increase in the overall tax bill, and when combined with the Region of Durham’s 2.5 per cent proposed target, the overall impact on the property tax bill is 2.55 per cent, the statement justified.
The 3.95 per cent proposed budget target is based on the projected current cost of living for 2022 and will cover the cost of current municipal services, it said adding that from that budget target, 1.75 per cent will be dedicated to paying for repairs and rehabilitation of existing infrastructure, buildings, facilities, and roads.
Each year municipal staff prepare a projected budget for council approval to pay for services such as winter control, road repair and needed upgrades, fire services, facility operations and maintenance, as well as park maintenance and more. As the municipality grows and new homes are built, there is an increased demand for services and need for infrastructure support.
The proposed budget for council consideration will be released on January 14, 2022, when council is expected to set priorities and deliberate the budget at several special meetings. Final budget ratification will take place early in February, the statement said.
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