PORT HAWKESBURY: Officials in the Town of Port Hawkesbury have held the line on municipal taxes.
Council unanimously approved their 2020-21 municipal operating and capital budget during their monthly council meeting June 2.
Both the residential and commercial tax rates remain the same. The tax rate breakdown for residential properties is $1.58 per $100 of assessment plus the $0.22 of assessment for the sewer service charge, which became a separate charge last year, for a combined total of $1.80.
Commercial tax rates come in at $4.16, plus the sewer service charge totaling $4.38 per $100 of assessment.
Brenda Chisholm-Beaton, Port Hawkesbury’s mayor, told reporters there were a number of factors which affected their $7.7 million budget, but maintaining the tax rate was something council had as a priority.
“One of the main reasons why we chose to fund our substantial deficit from our operating reserves is because we understand as Town of Port Hawkesbury staff, as town council that COVID-19 has created an incredible financial burden to both businesses and citizens,” Chisholm-Beaton said. “It was incredibly important that we try to manage the financial burden we’re experiencing as a municipality without having to increase commercial or residential tax rates.”
As to why the town chose to use their operating reserves to fund their $490,000 deficit, instead of using the recently announced $380 million municipal operating loan, the town’s finance director suggested it’s because the loan comes with an interest rate attached.
“We had funding available in our reserves so we’d rather our taxpayers not to pay interest if we had the cash available, but obviously we’ll continue to monitor our cash flow situation,” Erin MacEachen said. “The municipal operating loan doesn’t have to be utilized right away, you can look at how your collections are going in spite of the pandemic and should we need to move towards that operating loan – we can do so.”
Chisholm-Beaton advised they were already facing a $115,000 deficit prior to COVID-19, and the financial challenges have been more pronounced throughout the pandemic.
Some of the major expenses included in this year’s budget include a mandatory $1.62 million contribution to fire and police services, which accounts for 21 per cent of the budget, a $1.08 million contribution to the Civic Centre, accounting for 14 per cent, and a $616,000 transfer for education.
The budget also highlights $2.51 million in capital investments, including $1.2 million in treatment plant and distribution system upgrades which are essential to continue to provide clean, safe water; an amended asphalt patching plan with increased funding, signage and wayfinding installations; and safety upgrades to the playground.
Also included in this year’s budget is the paving of the active transportation lane.
“Our AT lane from the Nautical Institute to MacSween Street, which was constructed last year, we’re going back in this year laying asphalt and making it an all-weather facility,” Terry Doyle, the town’s CAO said. “We’re making it more accessible and really something the whole town is looking forward to.”