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Gore Bay set to increase taxes by almost six percent for 2024

GORE BAY—In order to be a thriving full-service community, the Town of Gore Bay has invested in many amenities to support recreation, culture, arts, health and wellness, tourism and senior services programs. The town has also invested in its infrastructure, both new and old, to ensure it maintains its brand as a service centre for Western Manitoulin and as a destination of choice.

In order to do this the town council has approved a 5.92 percent property tax increase, which equates to a $13.66 increase per month on the median household assessed value and a two percent allocation to capital reserves.

A release provided after a council meeting last week also indicated, “Over the past few years, we have depleted all our reserves for our facilities (arena, community hall, town office, public works operation centre, our fleet and equipment). Our asset management plan indicated we would need to invest an additional four percent each year over the next 20 years to address our gap. To this end, in 2024 we approved a two percent allocation to capital reserves. This additional funding will increase the total property tax by $18.20 per month per median household assessed value.”

As well, “to ensure we continue to provide high quality water and sewer service we approve a seven percent increase to the rates for 2024. This amounts to a $6.17 increase per month for a residential property.”

Mayor Lane said after the council meeting of March 5, “In an effort to assist our residents due to the pandemic over the last three years the total tax increases were 5.5 percent, while inflation went up 14 percent. That is an 8.5 percent gap and the town needs at this point to catch up. All investments in this budget ensure we will continue to be a full-service community today and into the future.”

At its meeting last week council passed a motion to accept the proposed 2024 budget. However, it was a split vote, with three councillors in favour of accepting the budget and three councillors voting against it. “I agree to accept the proposed budget,” stated Gore Bay Mayor Ron Lane at the meeting. His vote tipped the side for approval of the budget.

In casting the deciding vote Mayor Lane said, “I know there were some reservations among council, but I feel we have done the right thing. We are not on council to make friends.” 

Those councillors who voted in opposition to the proposed budget were actually in favour of the increased budget, but voiced concerns after the meeting with one line item, namely the purchase of a new one-ton truck with plow that cost over $100,000.

Councillor Dan Osborne told The Expositor after the meeting, “I was against a certain line item that would have kept us from raising the budget as high as we did. Overall, we are looking at a 7.2 percent budget increase with the inclusion of putting away two percent toward future infrastructure costs. The item I had a concern with was the purchase of a truck with a plow.”

“In my view this is not a necessity,” stated Councillor Osborne. “Overall I think it was a good budget, and if we had taken this item out it would have reduced the budget a little bit.” He explained for the three years total tax increases have been kept below the rate of inflation to help local residents. So, the budget increases have not been keeping up to inflation. When COVID hit, people were out of work and struggling so we held the budget down, but now having a budget increase rate makes sense.”

“In the big scheme we are bringing down the tax increases because we are borrowing from ourselves and paying ourselves 5.56 percent in interest every year for the next 10 years to pay for equipment and replenish our reserves,” said Councillor Osborne. “No one wants to see taxes increase. I’m a taxpayer in this town as well.”

Both Councillors Kelly Chaytor and Rob Dearing said they understand and agree the budget is good except for the purchase of the truck. “I am fine with everything in the budget except for the one fleet purchase,” said Councillor Chaytor. With the truck (and a trackless replacement) we are looking at costs well over $200,000 in equipment purchases, which is a lot for a small town.”

“I don’t disagree with the budget increase, but probably with how the funds are spent on new equipment,” said Councillor Dearing. 

“I’m happy with the budget and the reasons for the increase because we have to catch up,” said Councillor Terry Olmstead. “The cost of living last year went up six percent and our tax increase was at two percent. You can only do this for so long, then reality hits.”

Councillor Ken Blodgett said, “I think it’s a good budget. People should be satisfied with it and the reason for the increase. We had no one show up at the open public part of the meeting to bring forward any concerns.” 

“I think it’s a good budget at a 5.5 percent increase. We have some capital investments and some equipment that is old and needs replacing. And we’re building more reserve funds so if something happens the funds will be there,” said Councillor Blodgett.

“In the first year of this council term, a bold strategic plan was developed and in 2023 momentum began in delivering value to the residents and businesses of our community,” the release says in part.

“Accomplishments include passing several important bylaws that promote the appearance and safety of our community, modernization of our administration, introducing a new pay structure to attract and retain top talent, establishing The Lodge (walking) Trail, improvements to the boardwalk including new bridges, installation of a new EV charger, one of the most successful Harbour Days ever, enhancements to the Harbour Centre, community hall and museum. We have also partnered with St. Joseph’s Health Centre and Jarlette Health Services to work toward the construction of a new 64-bed long term care home. This will ensure we continue to offer this important service to Western Manitoulin residents close to home.”

“We are continuing to build on this momentum into 2024, with over $2 million in major capital investments planned such as completion of a new/modern airport terminal, new three-season public washroom adjacent to the pavilion, refurbishment of the Ron McQuarrie Gazebo, converting the former Water Street playground into a landscaped passive waterfront part, design to revitalize and beautify our downtown, final design of 65 new slips at the marina, Kinney Street bridge restoration, design of a west bluff trail, marina  roof replacement and fuel tank replacement, upgrading the watermains and storm sewers in the north part of town, public works fleet replacement to maintain and improve community safety service levels.

“In alignment with the bold strategic priorities, we will be investing in the following enhanced services to build on to our existing base services. These include igniting our community spirit by offering more programming and events for all ages, developing a comprehensive marketing plan to promote tourism and assist our local economy walking trail maintenance, enhancing our youth soccer program, investing in our people to attract and retain top talent, working with our local doctors and private partners to attract and retain doctors.” 

“Overall, obviously I voted in favour of the budget,” Mayor Lane told The Expositor. “This was a budget we had to put in place this year. Some of the numbers will concern some people but the budget has been too low for the last three years. It didn’t even match the cost of inflation.”

“Hopefully the numbers will not be the same next year,” said Mayor Lane. “We have a plan in place to put money aside every year to handle other expenses in the future. And I understand the concerns with the equipment purchases but our equipment is older, and we have been talking about purchasing a new truck since I was the mayor previously. Overall, I think this is a very responsible budget.”

Article written by

Tom Sasvari
Tom Sasvarihttps://www.manitoulin.com
Tom Sasvari serves as the West Manitoulin news editor for The Expositor. Mr. Sasvari is a graduate of North Bay’s Canadore College School of Journalism and has been employed on Manitoulin Island, at the Manitoulin West Recorder, and now the Manitoulin Expositor, for more than a quarter-century. Mr. Sasvari is also an active community volunteer. His office is in Gore Bay.