Quispamsis town council has approved a small tax rate increase as part of its 2020 budget.
Council voted 5-2 in favour of the $25.8-million budget during Tuesday night’s meeting.
Residents will see their tax rate go up by 2.45 cents to $1.3428 per $100 of assessment.
Coun. Kirk Miller said the increase would have been about three cents higher had they not found savings and made some cuts.
“The qplex parking lot, that was almost $200,000 to resurface that so we removed that,” said Miller. “There was originally LED lights for the qplex, I think about $135,000, so we deferred that for two more years.”
Budget Approval Not Unanimous
Miller, who chairs the finance committee, said the budget reflects an increase in total expenses of nearly $870,000. Most of the increase — more than $510,000 — is due to higher costs for police and fire.
The budget also includes money to hire three new employees in three departments: planning, parks and arenas.
It was the hiring of those workers which prompted Miller and Coun. Sean Luck to vote against the budget.
Miller said he is not against the staff but has seen no data to say those three particular positions are needed.
“The performance audit that we just purchased basically stated that, at least in my understanding of it, was right now resources are very lean but to replace people right now was ranked low, but we should look at it in the future,” he said.
Miller said the town’s strategic plan, which has not yet been developed, will give council an idea where staff are needed.
Council Defends Higher Tax Rate
Most councillors around the horseshoe defended the town’s decision to increase tax rates.
Pierre Rioux said a progressive community cannot hold the line on taxes if it wants to move ahead.
Emil Olsen said their tax rate is low compared to other communities, especially when you consider the assets the town has.
Deputy Mayor Libby O’Hara said the town has grown significantly over the years, which comes with increased costs.
Water, Sewer Rates Also Going Up
Town council also approved an increase to water and sewer rates at Tuesday night’s meeting.
Council set the new sewer rate at $488 per equivalent user, an increase of $40.
Water fees will also increase by between 9.26 and 10 per cent. For most residential homes with a basic meter size, this will amount to an extra $20 per year.
Miller said the extra money collected by the town will help fund future infrastructure projects.
“One of our biggest costs is going to be over $7 million for the Gondola Point wastewater project,” he said. “All along Gondola Point, those were built around 1970. We’ve also had issues when we have all this major flooding that sometimes we almost have to turn them off, it’s been at risk.”
The town’s asset management plan indicated it needs to put funds aside now to ensure money is available to replace and maintain aging infrastructure.
Miller also noted the town charges “significantly” less than most other municipalities for water and sewer.