Some northern Ontario towns see double-digit tax hikes this year
CBC
The mayor of Black River Matheson, Doug Bender, says his council hasn't changed much in its 2023 budget, "other than keeping the lights on."
But still, the township needs 34.5 per cent more money to keep operating.
It's a similar story in Cobalt.
The northern Ontario town's manager, Steve Dalley, says "no particular item caused" this year's 12 per cent tax increase.
Both say the hikes are necessary to break the pattern of using reserve funds to cover day-to-day expenditures.
Reserve funds are meant to cover unexpected expenses or contribute to important capital projects.
To avoid being in a deficit, Cobalt took more than $300,000 from its reserves over the past two years.
It's a move that is not sustainable, according to Dalley.
"That's why we're looking at avenues for increased revenues to replenish the reserve," he said.
Black River Matheson has also heavily depended on its reserve funds to cover expenditures over the past few years.
The situation leaves the present council with "a very severe issue to deal with going forward," said Bender.
"The fact of life is that municipalities cannot run deficit budgets like senior levels of government."
Bender said there has been misunderstandings in the community about what the tax hike entails.
"Everybody's individual taxes will vary based on their basic impact tax assessment."
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