After two years with a zero-per cent property tax increase in Lantzville, council is moving forward on a three-per cent hike.
At a meeting Wednesday, March 12, Coun. Jonathan Lerner moved a motion that the process go forward with a three-per cent option, which would result in approximately $93,000 more placed into reserves for future infrastructure replacement.
This is in addition to a three-per cent increase to water user rates and 6.9-per cent increase in flat sewer rates overall to facilitate a shift from variable to flat rates.
"One of the things I heard during the election was a lot about taxes, there was a 68-per cent increase cumulatively over four years from 2018 to 2022 and one of the things I heard was for that to stop," Lerner said, as he introduced the motion, adding that was what the current council did after being elected. "As much as I love the idea of continuing with zero or one per cent, I think that we're in a very unique situation right now. Three per cent, I think, is very reasonable if you look around the province."
The choice to go with a three-per cent tax increase followed council requesting public feedback on what property tax increase people would prefer. An online survey created by council garnered 99 responses, with the majority favouring a two- or three-per cent increase. Approximately 44 per cent of respondents indicated they were in favour of a three-per cent property tax increase, followed by 36 per cent in favour of no tax increase and 19 per cent in favour of a two-per cent increase.
"We put it out there in the community for people to look at – zero, two or three per cent. Yes, it's hard to tell based on the survey how many responses are from the same people within Lantzville, but the plurality of people supported two or three per cent and I think that this will be a reasonable amount for people to handle," said Lerner.
Coun. Rachelle Mundell said she liked that the district was moving in this direction because the zero-per cent increases left her "concerned" that the municipality wasn't going to meet its financial obligations to the community, adding that this gave her "a little bit more reassurance," though "it's not, probably, enough."
"I was not supportive in the past of zero-per cent increases," Mundell said. "I'm glad we're considering now a three-per cent because we need to keep up with the momentum of inflation and the costs that are going to be borne by the residents in this community for things like infrastructure upgrades."
Mayor Mark Swain said he was glad to be going with the highest of the three options, saying it is "common sense" to be doing more for the district's reserves.
"We have investments, but again, the returns on those investments pale in comparison to what is required to fund our reserves to a healthy level in which we can be sustainable," he said. "When we look at three per cent, I mentioned this last time, it's less than $100,000. If we're looking at just sidewalk replacement or putting in sidewalk, it's $2,000-$3,000 per metre."
The sole vote against came from Coun. Joan Jones, who expressed that three-per cent, equalling $93,000, does little for infrastructure upgrades. She added that the number of survey respondents was an "insignificant number."
"Dickinson Road alone will cost somewhere well over $4 million, probably closer to $6 [million]…" she said. "This hardly counts as a step in the right direction. We can make this step, but in my opinion, if we make this step and think we're making any real progress to solving a very serious problem, with not having the resources to replace infrastructure and develop, this is misleading."
The shift from variable to flat sewer rates is a gradual plan previously initiated by council, anticipated to take about three years, culminating in a completely flat sewer rate in 2026.
Staff was directed to prepare a financial plan bylaw, which is expected to be introduced for three readings on March 26.
