By Jeff Helsdon
Most Tillsonburg residents were shocked when they opened their tax bills last month and saw a larger-than-expected increase.
The increases equate to $247.53 on a house assessed at $237,000. This is the median assessment for Tillsonburg, and do note it is assessed value through MPAC, not the value on the market today. Breaking the increase down on the median value, the increase is $96.25 for Tillsonburg and $151.28 for county taxes.
Renato Pullia, Tillsonburg Interim Director of Finance/Treasurer, said many municipalities had high preliminary budgets. She said increasing costs in health care, homelessness, infrastructure renewal and growth, inflationary pressures on goods such as sand and salt and construction are all contributing factors.
“Even for us, most of our tendered projects over the last few years have come in 30-40 per cent over budget,” he said.
Tillsonburg Mayor Deb Gilvesy, the town’s representative on county council, discussed the changes with The Post via an e-mail question and answer.
TP Tillsonburg residents received a shock when they opened their tax bills and many were upset. Can you share their feelings?
DG To say I am upset would be a huge understatement as I was and still am devastated by the passing of this budget. I left the building in Woodstock that day with a heavy heart and tears in my eyes knowing the negative impact it would have on budgets for households, industry and commercial spaces. And this is why I could not support it. I am also a taxpayer and my taxes increased significantly as well. The economy is tough right now as we have gone through a period of increased interest rates as well as skyrocketing inflation rates coming out of the pandemic. Hopefully this will start to level out, however, I don't see costs for essentials easing anywhere at this point in time. Increased fuel costs, supplies, labour costs and new regulations are all factors that affect municipalities and their budgets. That being said, governments at all levels still have to be responsible and efficient.
TP What is the breakdown of the tax increase?
DG The Town of Tillsonburg and the County of Oxford have different mill rates. It should be indicated separately on your tax bill the amount owing to the town, the county and to education. The mill is set once the budget levy rate has been determined and passed by council. The mill rate is then multiplied by your assessment to determine the amount owing. It should be noted that assessments are done by MPAC and not the town or county. MPAC is a third-party independent company. These three items are then added together to determine the total of your tax bill. Also, budget increases are not the same as levy increases. Budget increases capture user fees, grants, new growth assessments and other sources of revenue. Once those are all factored in the amount that remains “unfunded” determines the “general levy”. The general levy is the taxation revenue. The general levy at the county level increased by 16.7 per cent and the general levy by the town increased by 4.91 per cent. Education taxes saw no increase over last year. Education taxes are set by the Province of Ontario and the municipality is required to collect and remit them to the province.
TP The county increase at 16 per cent is a huge number. Can you provide a breakdown of what drove the increase?
DG With the county,
the library levy increased $5.2 million or a 21.8 per cent increase over last year.
Court Security and Prisoner Transportation Grant Levy was a $72,000 increase over last year
Southwestern Public Health Levy was a $4.3 million or a 56 per cent increase over last year
Conservation Authorities 2024 levy was a 15.4 per cent increase over last year
New Initiatives by the County
Conservation Authorities 2024 levy was a 15.4 per cent increase over last year
$4 million to close funding gap for the required asset management plan
$2.25 million increase in funding for affordable projects
$0.5 million increase to those experiencing or at risk for homelessness
Support 24/7 emergency shelter services in Woodstock and winter shelter in Tillsonburg
$1.7 million increase to fund additional paramedics and emergency management services
$0.9 million to meet new requirements under Ontario's Fixing Long Term Care Act
$0.5 million in additional traffic calming measures
41 new full-time equivalent employees to maintain current service level
The biggest budget pressures for the county are: new provincial regulatory requirements; affordable housing; homelessness response; paramedic services; long term care home; public works infrastructure; inflation; growth impacting infrastructure, increased call volumes for emergency services and planning demands.
TP Do you think a huge increase like this is justifiable?
DG No, I do not and thus why I didn’t support. I believe there were new FTEs that could have been trimmed and some programs as well. I also believe the green fleet conversion, which was an item that pre-dated my time on county but does come with a significant price tag, could have been at the very least delayed and possibly reconsidered.
TP What improvements will Tillsonburg residents see for the increase in county taxes?
DG As stated above there is commitment for more affordable housing. I will be upfront though when I say there are not enough dollars to solve this problem as the affordability crisis is a broader problem than the two lower tiers of government. Tillsonburg will see maintenance and repairs of county assets such as roads to maintain service levels. Two-and-a half wells in Tillsonburg are being repaired to bring back online. Funding for the asset management plan is critical as Tillsonburg will be seeing upgrades for both water and sewer in the years to come which has been identified in the new County of Oxford Water and Wastewater Master Plan. A new crosswalk was installed on North Street and planning is underway for a crosswalk on Tillson Avenue by Annandale School. Things you won’t see are planning for road reconstruction and sewer and water upgrades that will be taking place in the future.
TP The Tillsonburg increase at five per cent is also larger than normal. What drove this increase?
The larger-than-normal 4.91 per cent tax increase in Tillsonburg for 2024 is driven primarily by several factors:
Infrastructure Needs: A significant portion of the budget is dedicated to addressing the town's aging infrastructure. The town is investing in essential projects like road reconstruction and culvert replacements to maintain and improve the local infrastructure, which requires considerable funding.
Rising costs: The town is facing increased costs in supplies, labour, and interest rates. These factors are affecting municipalities across the region, leading to higher budgets to cover these escalating expenses.
Capital Projects: The 2024 budget includes $23 million for capital projects, a significant increase from the previous year’s allocation. This increase is necessary to fund multiple critical infrastructure and community facility upgrades that are essential for the town's growth and development.
These factors combined have led to the necessity of a higher-than-usual tax increase to ensure that Tillsonburg can continue to meet the needs of residents and maintain its infrastructure effectively.
Town staff did bring forth a fairly responsible budget with no frills but council deliberations did reduce it by almost 3 percent.
TP What improvements will Tillsonburg residents see for the increase in town taxes?
DG Tillsonburg residents will see several improvements as a result of the town's 2024 budget, which includes a 4.91 per cent increase in property taxes. The additional revenue will support a variety of capital projects aimed at enhancing infrastructure and community amenities.
Key projects include:
Road Improvements: Reconstruction projects are planned for Charlotte Avenue, Clarence Street, and Townline Road, which are expected to improve traffic flow and road safety.
Infrastructure Upgrades: The budget allocates funds for replacing a culvert on Devonshire Avenue, an essential infrastructure upgrade to manage water flow and prevent flooding.
Community Facility Enhancements: Upgrades are planned for the bathhouse at Lake Lisgar Water Park, and there will be rehabilitation work at the Tillsonburg Community Centre, particularly focused on its aquatic facilities. These projects aim to enhance recreational amenities for residents.
Tillsonburg saw the addition of three brand new pickleball courts however 90 per cent was funded through development charges and the remaining 10 per cent was funded through taxation. Development charges are fees that our collected upon the issuance of a building permit.
These investments are part of a broader effort to maintain and improve the town's infrastructure, ensuring long-term sustainability and quality of life for the community. All in part in mainlining levels of service which is a top priority for council.
TP As mayor you were one of the county councillors who voted against the tax increase but were outvoted. What can residents do to register their dissatisfaction with this increase?
DG Fill out the survey and get engaged by paying attention. The county is just that one step removed and most people really are not in tune with that level of government. Ask questions and reach out to county councillors including myself. Budget deliberations start in November.
TP One of the drivers of the county increase was social housing. Will this result in an increase in affordable housing in Tillsonburg?
DG Yes, the county is currently working with a local developer and also the town to bring more attainable (less-than-market rent) units to the Town of Tillsonburg. The county will also be supporting another project by Westfield Public School.
TP The town’s budget meetings are open to the public. They are also a lengthy process. What do you suggest residents do to provide input through the process?
DG Fill out the survey and reach out to myself or council with your concerns. The budget process is actually not all that lengthy but I find many citizens are not engaged in the process and especially at the county level. The process is transparent and open to the public. I know that budget deliberations is not the most exciting of council deliberations but actually the most important as a budget and business plan set out the course for an entire year. With new 10-year capital planning, the time line is even longer.
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