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Inflation forces council’s hand in Paradise

By Mark Squibb/December 2, 2022

The cost of everything has gone up, and, if you live in Paradise, that’s going to include your taxes.

Budget 2023, presented Wednesday, includes small increases to the residential mil rate as well as to the residential and commercial water and sewer rates.

The mil rate will rise from 7.2 to 7.4, and the residential water and sewer fee will go from $600 to $625. The commercial water and sewer tax will see an increase of 0.5 mils, going from 1.0 mil to 1.5 mils.

“While we have adapted to what has become the new normal, impacts of the global pandemic over the past couple of years are still ever present,” said councillor Elizabeth Laurie, who as the chairperson of the Administration and Corporate Services Committee, presented the $40.7 million budget. “Rising costs, supply chain issues, and inflationary pressures are changing the way all organizations operate, and the Town of Paradise is no different.”

Laurie said under the mil rate increase, the average household will pay an additional $15 per month on residential taxes.

“While it was very difficult to decide to increase the residential mil rate and water and sewer rates, it is the right decision to make for the good of our town,” said Laurie. “We understand that this is not the news that our residents want to hear, and we assure them that there was considerable discussion on competing priorities and analysis on this matter. Without the increase, we would be faced with the difficult decision of reducing programs and services.”

Laurie said the crunch being felt by residents is being felt at the municipal level as well.

“Like all municipalities, it is costing more to provide the programs and services that our residents need and deserve,” Laurie said. “Just as our residents face rising fuel prices, so too does the Town. Just as homeowners face rising costs for materials needed to make home repairs and renovations, so too does the Town. And just as residents are faced with hard choices to make their income stretch further, so too does the Town. We understand what our residents are dealing with, and it was of the utmost importance to us as we entered budget preparations. We want to continue to be a growing town, to be the community that people choose to call home, and that means making strategic decisions.”

The budget pledges money for various water and sewer projects, recreation improvements, street rehabilitation, neighbourhood quieting initiatives, additional snow clearing equipment and staff, and more.

Specifically for water and sewer, the Town hopes to complete water and sewer in Evergreen Village, as well as Stephen’s Road and Neary’s Road. Following this work, the Town will be left with only eight roads remaining on the water and sewer priority list.

On the recreation front, council earmarked money for the Elizabeth Park Refresh – including installation of bike lanes and upgrades to Lombardy Place Park, site preparations for the 2025 Canada Summer Games, upgrades to Peter Barry Duff Memorial Park, work on various trails, including new trails, continued work on the proposed Community Boat House in conjunction with the Avalon Dragons, and upgrades to the Milton Road Clubhouse and ballfield.

What’s not on the agenda is a new swimming pool.

“All of us on council have heard from residents about adding a pool to our recreation amenities,” said Laurie. “We appreciate the feedback and as part of Budget Talks 2023 we decided to ask our residents about a pool. We gave the full context, explaining that a pool could not be built without funding from provincial and federal governments, and that once built, operating a facility would mean a six per cent tax increase. The responses were split, 47 percent of respondents did not support a tax increase for a pool while 40 percent supported a tax increase for the pool and the remaining 13 percent responded as neutral. There was no clear support for such an investment. Given current fiscal pressures, it is not prudent at this time to explore a pool for our town. Our partnership with The Works enables swimming lessons strictly for Paradise residents at the Aquarena, and we will continue to explore opportunities throughout the region to meet the needs of our residents while ensuring strong fiscal management.”

The Town has also earmarked money for equipment and personnel to increase snow clearing routes from seven to eight.

Council is allocating $575,000 to the Infrastructure Reserve Fund, bringing the total to $2.755 million.

This budget is the last one guided by Paradise’s current strategic plan. The Town will develop a new strategic plan in the new year.

“Budget Talks 2023 garnered the largest response we’ve received since we’ve started having budget consultations,” said Laurie. “We thank all of those who took the time to participate, and share their ideas, suggestions, and input with us.”

Following Laurie’s presentation, council held a round table discussion before voting on the budget. Each councillor took a few minutes to speak to the budget, with the common theme being an acknowledgment of tax increases as a necessary evil and applause for the thoroughness of the budget preparation.

Councillor Deborah Quilty said this was the most exhaustive budget preparation she has been in involved in during her entire council tenure, which began in 1994. Councillor Glen Carew said while he was not happy with the tax increases, and thereby the budget, he would vote in favour of it.

Council voted unanimously in favour of the financial blueprint.

The Town projects taxation revenue as its biggest source of income again next year at $34 million, or about 84 percent of total revenue. That’s up about $3 million from last year. The biggest expected change is a decrease of almost 50 percent in government grants from 2022.

The Town forecasts transportation services as its biggest expense – about $8.28 million, or 21 percent of total expenses, virtually the same as last year. Capital upgrades amount to $7.30 million, about 18 percent of the Town’s outlay, which is up from the $6.47 spent this year.

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