City’s draft budget projects 9.8 per cent hike in 2024 tax levy
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Kirkland Lake ratepayers could be looking at a significant increase in their 2024 taxes.
During the March 19 town council meeting, Treasurer Lloyd Crocker presented the first draft of the 2024 capital and operating budgets and unless changes are made during the next several meetings, the tax levy will go up 9.8 per cent.
In his report to council, Crocker said, “The 2024 budget preparation followed a process whereby department directors and certain managers were asked to provide both operating and capital budget details for their respective departments/divisions.
“After examination by Treasury, each portion of the budget was returned to those departments/divisions for revisions and reductions. Lastly, all departmental budget details were combined to form the overall proposed 2024 Operating and Capital Budget for the Town of Kirkland Lake.
“This year, funds from reserves are being taken into account to keep the anticipated municipal tax levy increase to approximately 9.8 per cent, which includes all capital and operating activities.”
After the meeting, Mayor Stacy Wight said, “So, a 9.8 (per cent) increase is definitely not where the Town of Kirkland Lake wanted to start the process. It is important for the community to understand this is the starting point, and the finish line is about 30 days away.”
The mayor added during the next several meetings she and the council members will do their best to pare down the number but there are many costs that are simply not within their control.
“As we have seen in the past, when it comes to council we do go through (the budget) line by line with the departments and we are able to kind of chip away at what needs to be taken away for future years,” she said.
“So, there is a possibility that it may come down.”
According to Crocker’s report, the municipality has approximately $13,700,000 of wage costs which typically increase each year at a rate approximating their CUPE 26 union agreement (2.5 per cent in 2024).
Some wage groups in the municipality have negotiated higher annual wage increases. A 2.5 per cent rate increase to all wages would result in an increase in the budget of approximately $343,000, which would result in an approximate three per cent tax levy increase (with no other budget increases).
Performance step increases, pay equity, increased benefit costs and higher wage rate increases, in unionized wage groups, would further increase the labour and related costs in the budget.
Insurance costs have increased by more than 10 per cent per year since 2022 ($100,000 in 2024).
Wight added, “There is also DTSSAB (District of Timiskaming Social Services Administration Board), police services board, outside boards and agencies we pay into we have no control over.”
Council will hold a special meeting on March 27 and at that time they will go over each department head’s budget.
The budget is tentatively scheduled to be passed on April 25.
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