IGNACE — Council has directed municipal staff to target a zero per cent tax levy increase for its 2023 budget, which the interim mayor expects to have ready by the end of the summer.
The township announced earlier this month that they had set a goal of not increasing the municipal tax levy.
“This council wanted to do a zero per cent tax increase. That’s our wish. Hopefully, we can get there. We are going to get the staff to look into user fees, checking our water and sewer rates to make sure that they are in line with other communities, and leverage federal and provincial funds to help our community with other projects,” interim Mayor Kim Baigrie said in an interview.
Ignace’s tax revenue comes from residential and commercial properties. To avoid a levy increase, staff have been directed to focus on increasing user fees for community services and municipality-owned rental space.
For example, regular ice rental rates during the winter at the Ignace Recreational Complex are $81.25 per hour and $100 per hour in the summer months.
Dryden’s Memorial Arena charges $93.70 per hour for minors. In Fort Frances, ice rental fees at the Memorial Sports Centre are $114.61 per hour for minors during prime-time hours. Non-prime-time hours are set at $79.38 per hour.
Potentially, the Ignace Recreational Complex could see an increase in user fees, but the potential amount is not yet known. An increase in ice rental fees would likely result in minor hockey leagues and figure-staking clubs paying more for regular ice time.
Baigrie added rental agreements on the Ignace Bowling Alley, the Golf and Country Club, and the fitness centre will also be evaluated as well.
Staff also directed to other municipal water and sewage rates to ensure Ignace is “charging what we should be charging,” as Baigrie stated.
As more municipalities in northwestern Ontario move over to flat-rate billing as a streamlined billing system, the average three to seven-room residential property in Atikokan pays just over $1,000 annually for both water and sewer, while Ignace’s residential water usage C Flat Rate is set at over $1,500.
Ignace has both metered and flat-rate billing on their residential and commercial properties, while Atikokan uses flat-rate billing systems on residential, commercial, and industrial properties only. Fort Frances, Greenstone, and Manitouwadge have similar flat-rate billing systems, but fees vary according to population.
Staff have also been directed to look into government grants and partnership opportunities with stakeholders to help obtain additional funding.
Currently, an application to obtain funding to fix the Pine Culvert is in “the works,” according to Baigrie, but there is no exact timeline for when the project will be completed.
According to municipal clerk Rhonda Smith, the project will be done sometime this year.
However, Baigrie acknowledged that the cost of inflation is a “huge” cost on the municipal budget. At the moment, all departments can only spend 50 per cent of their last year’s budget until June 30.
“That's just insane what you pay for construction materials now compared to what we were paying in 2020,” Smith said.
Smith said that the price of material has nearly quadrupled since 2020.
Baigrie acknowledged that the public works department is a concern due to the lack of a new budget.
When asked specifically what is being affected by budgetary constraints, Baigrie said, “vehicles and equipment.” However, Baigrie expressed that staffing has not been affected.
Smith acknowledged that the cost of salt and sand has tripled compared to the previous year.
Council will also not be looking to explore additional funding through Nuclear Waste Management Organization.
Recently, council requested the organization purchase a new fire truck and fire suppression equipment for $689,000, according to regional communications manager Vince Ponka.
The organization has provided $4 million in reserve funding for infrastructure improvements, which Ignace accessed previously to repave the plaza parking lot and to create the seniors' urban art trail.
Ponka stated that reserve funding is available to council as long as the project benefits the community, is sustainable, the project is achievable, council has looked at alternative funding, and future costs of the infrastructure are managed by the municipality.
Baigrie foresees no barriers in accomplishing a zero per cent tax levy “as long as [staff] looks into user fees and water and sewer rates.”
Former town councillor Chantelle Tucker said that promising a zero per cent tax levy is possible, but also ill-advised. A zero per cent tax levy increase will affect ongoing projects and municipal operations, she insisted.
In Tucker’s personal experience on Council, even a two per cent tax levy increase provides the town with a cushion to fall back on if funding isn’t available elsewhere.
A zero per cent tax levy this year might mean that Ignace’s 2024 budget could see a major tax levy increase to make up for shortfalls in this year’s budget, Tucker argued.
“Having a zero per cent tax increase, personally, is not a responsible choice. Because for one year, it is going to be at the expense of projects, infrastructure, and staffing,” said Tucker.
Tucker believes zero per cent could come at the cost of cuts in service and staff layoffs.
Baigrie disputed that potential.
"There won’t be any service cuts," the interim mayor said. "That’s not what we have planned.”
