By Cecilia Nasmith/Northumberland 89.7 FM/Today’s Northumberland
It took all day, but Northumberland County council was able to bring in a 2025 tax increase under its 6.5% target – 6.12%, to be exact.
In several reports, Director of Finance Matthew Nitsch described issues that persist with inflation and also the non-residential building construction price index, in spite of recent drops in interest rate and the consumer price index.
Levy increases below the rate of inflation create risks to maintaining service levels, Nitsch said. This can be seen now, with previous councils occasionally passing insufficient levy increases.
Pressures during this current budget cycle include significant draws expected to take place on reserves over the next few years, and a looming tariff dispute with the new US president that may result in procurement difficulties.
Prior to the meeting, staff worked hard to recommend savings and adjustments and bring in a 6.32% increase as the meeting opened. Even so, there were additional items to be considered, such as the recent commitment for funding to the Art Gallery of Northumberland and the municipal restructuring study on the agenda for that meeting of council.
Debates over hiring freezes and compensation cuts that had been floated at previous council meetings ended on an inconclusive note. Looking ahead, Deputy Warden Olena Hankivsky made a motion for a special council meeting in January to discuss concrete steps for an organizational/services delivery/cost savings review, including but not limited to staff positions.
In the end, after growth, they ended up with a 6.12% – which, unfortunately, is the figure without the addition they have made to previous years’ levies of 1% as a dedicated infrastructure levy and 1% dedicated affordable housing levy.
“I would like to see some of the dedicated infrastructure put back in, even a half-percent for each one,” Councillor John Logel said.
“That would be 7.12%,” Brian Ostrander said.
“That’s too much,” Logel allowed, and the motion to approve the budget with the 6.12% levy increase passed.
Councillor Mandy Martin had also expressed concerns over infrastructure, a particular concern to the municipality since downloading began in the 1990s.
“This is where it’s hurting, at the deeper grass-roots level,” Martin said.
“While we support the increase inching this way in more and more health programs, infrastructure is failing. That’s what keeps everything going, and we are not getting the money.”
