C-K taxpayers could face big tax hike in 2025

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The Chatham-Kent Civic Centre.

By Michael Bennett
Local Journalism Initiative Reporter
The Ridgetown Independent

Chatham-Kent taxpayers are looking at an increase of more than nine per cent in 2025 for the second of the municipality’s newly instituted four-year budget.

Chatham Coun. Alysson Storey brought the proposed tax increase to the floor at the June 24 Council meeting.

On June 19, councillors received an email from the Executive Management Team, through Mayor Darrin Canniff, asking for suggestions on how to find savings with the prospect of nearly a double tax increase for residents.

Councillors were asked to submit their suggestions by June 28.

“This seemed like a condensed timeline and we want to make sure we make those decisions in an informed way,” Storey said at the June 24 meeting.

The multi-year format was introduced last November, as council  whittled down a proposed 6.57-per-cent hike to a 5.53-per-cent increase for 2024 and an overall average increase of 7.82 per cent over four years.

The expected tax increases were 8.18 per cent for 2025, 7.7 per cent for 2026, and 7.3 per cent for 2027.

“Council has already, in principle, approved an 8.18-per-cent increase next year. However, council has also authorized expenditures that have raised it above nine per cent,” said Gord Quinton, Chief Financial Officer, at the June 24 council meeting. “It’s basically an ask by the mayor, through me to council, is there anything in particular you want staff to look at through the summer, any ideas for savings or any ideas for service level changes you’d like us to look into.”

“Otherwise, EMT will do their best to bring a responsible budget update for 2025 in the fall,” Quinton said.

With the change to a multi-year format, Quinton said the November full budget process will not be the usual one.

“We’ve already gone through the fine details and thousands of lines when we came up with the 8.18; we don’t have to go through all of that again,” Quinton said. “It’s just what has changed, and we’re requesting information.”

John Wright, East Kent councillor, knows residents will not be happy with the prospect of doubling their taxes.

“I don’t know where we’re going to get it; we’ve cut and cut and cut,” Wright said of finding savings. “No one wants services cut, and you can’t cut wages; they’re going to have to go up the way inflation is going.”

“If we’re going to have to start cutting, I hate to say it, but the easy cuts will be staff,” Wright declared.

For Morena McDonald, who replaced Steve Pinsonneault representing East Kent in June, it will be baptism under fire as she prepares for her first budget process.

“It’s something I’ll experience for the first time; I’m looking forward to the discussion,” McDonald said. “But I know there will be a lot of big and difficult decisions when it’s time for the deliberations.”

Councillors had a mixed reaction to the intent and timing of the administration’s email.

“To be honest, it’s kind of a ridiculous request,” said South Kent Coun. Trevor Thompson. “What am I supposed to come up with, sitting at my coffee table without any criteria, paperwork or potential savings in front of me?”

“It is our job to provide direction; it is really not our job to come up with ideas sitting at home on June 19 when the budget starts in November, and you’re giving us nine days,” Thompson said.

South Kent Coun. Anthony Ceccacci, who submitted a list of 10 recommendations for administration to consider, said the lack of provincial funding to municipalities has especially put Chatham-Kent in a financial bind.

“There’s more taxation revenue than ever before available to upper levels of government, yet the streaming sources to municipalities hasn’t altered whatsoever,” Ceccacci said. “Our own taxes should be paying for underground infrastructure, roads, parks, recreational amenities … not providing immense social service packages like shelters and small cabins.”

Ceccacci said public feedback is essential to gauge interest in divesting municipal assets or reducing services in the wake of skyrocketing costs.

South Kent Councillor Ryan Doyle said he would like to see an increase between zero and five percent.

“It’s too high of a tax increase, especially after the ones we’ve had the last two years,” Doyle said of the current proposed hike. “I would like to see each department look for five to 10 per cent in savings.”

Storey said she is concerned but not surprised by the prospect of residents’ taxes being doubled.

“Just like costs for just about everything have gone up in our own households, costs have skyrocketed for the municipality, which means we have to be even more careful with taxpayer dollars and question every dollar spent,” Storey said. “We have to question every proposal and ask if it’s a ‘must do’ or a ‘nice to do.’

“Unfortunately, this is not a council term where we can really afford to consider the ‘nice to do’ initiatives,” she said.

Storey said the proposed tax hike heightens her stance against the municipality’s purchase of the former Sears building to house the Civic Centre, library and museum.

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