Taxes up in Holyrood
By Craig Westcott/December 30, 2022
Holyrood council has upped its residential and commercial taxes and nobody on council is happy about it with one member even voting against the budget.
Councillor Laura Crawley, who presented the $4.43 million spending and taxation plan on December 20, said like everyone else, the Town is facing increasing costs caused by inflation, rising interest rates and the high cost of fuel.
“The cost of providing essential services and to operate the Town daily has seen exponential growth,” Crawley said.
In order to continue providing residents with safe, efficient and dependable services, Crawley said, it is necessary to raise residential taxes by half a mil and commercial taxes by a full mil. That will bring the residential tax rate to seven mils and the commercial property rate to 12 mils.
“There are also several classes of business taxes which have increased,” Crawley said. “The 2023 budget also sees a 10 per cent increase in water and see fees and an increase in other permit fees.”
Among the increases are a jump in fees for quarries from $2,000 per year previously to $5,000 next year. Excavating companies will face a minimum tax of $,2000 per year, up from $1,125 in the past.
Permit fees are also going up by 50 cents per square metre for new home construction, sheds, and extensions to existing houses, as well as for commercial developments. Landscaping deposits, most of which are refundable, are rising by $150 to $900. The fee per lot for subdivisions is increasing, while the subdivision fee itself is doubling to $400. Likewise, Crown Land processing fees are increasing, and the fee to get a release from a Stop Work Order is more than doubling to $250.
The cost of filling residential swimming pools is also going up $5 for the first 1,000 gallons to $55 next year, and then by an extra $1.50 per gallon after that to a rate of $16.50 per gallon.
However, for those who find themselves in the embarrassing position of having paid the Town with a cheque that doesn’t clear the bank, the NSF (nonsufficient funds) fee is being reduced by $10 next year to $35.
So called ‘Oceans Research Development Training & Technology’ organizations are about the only ones who will enjoy a break. The mil rate for those outfits falls by two mils to 11.5 mils while their minimum tax drops from $1,500 a year previously to $400 next year. That will no doubt be good news for the Marine Institute and any companies that does business with it in Holyrood.
Crawley said the Town is continuing to review its operations and “has carefully crafted a plan to position Holyrood for the future through fostering innovative business development. We believe we need to support our present local businesses while looking to invite new businesses to our town to expand the business community. Small business is the backbone of our community.”
But for the “business development strategy,” which includes providing help to company owners to find government funding and other opportunities, to work, Crawley said, all local businesses must register with the Town.
On the expenditure side, Crawley said Budget 2023 provides for an asset management strategy to identify aging infrastructure that needs replacement or improvement.
The Town is expecting a new truck and plow to arrive in the new year to help with snow clearing.
“The department (of infrastructure and public works) has also improved its fleet with the purchase of two new pickup trucks needed to ensure access to the various sites of infrastructure requiring intervention,” Crawley said.
“Water is the number one priority for the Town of Holyrood and council is pleased to say that we are investing over $7 million to improve the water and sewer availability in this town,” she added.
Most of that money will actually be borrowed over time and eventually repaid by other levels of government with the Town on the hook for only a portion of it.
The funding will cover a new water storage tank, which is under construction, and the development of a new water supply from Island Pond at North Arm River, “which can supply the town and support growth,” Crawley said.
Meanwhile, some of the improvements that council had hoped to make at Holy Cross Park next year have been delayed.
The fire department, however, will get more money to cover sick leave and annual leave to make sure there are always four full time paid firefighters at the Fire Hall during the day shift from Monday to Friday.
“In 2023, the Holyrood Fire Department hopes to complete work on our new training grounds located on Liam Hickey Drive and establish a proper training area and facility for members to complete hands-on, live fire training, including search and rescue techniques and much more,” Crawley noted.
As for the people footing the bill for the Town’s expenses, residents will continue to be able to spread their tax payments over eight months next year interest free by using post-dated cheques, Crawley said. Seniors receiving the Guaranteed Income Supplement can apply for a 20 per cent discount on their property taxes. And residents whose combined household income is less than $30,000 per year are also eligible for a 20 per cent discount.
Crawley said it is extremely important that the Town identify all possible forms of revenue and that residents pay their taxes on time.
“While the rate increases in this budget are not what council wanted to present tonight, they are the hard realities created by the economic condition of the world we live in,” Crawley said. “The Town has not had a (mil) rate increase since 2016, but due to increased costs of supplies, fuel, energy and all other components of running the town, ladies and gentlemen, friends and family, we are left with no choice. The easiest thing would be to do nothing and be popular. The hardest thing is to do right and ensure that we continue the path of success and sustainability.”
Crawley’s motion to adopt the budget received all but unanimous support with only councillor Bruce King voting against it.