Township of Wellesley 2023 Budget Increase

January 24, 2023, Crosshill, ON

The Township of Wellesley is committed to providing exceptional service to the residents of the municipality in a fiscally responsible manner. Budget discussions in relation to the draft 2023 budget were held over the course of two days at advertised public meetings held at the Township of Wellesley Fire Station 52 in St Clements, ON, on December 7 and 12, 2022. After lengthy discussion and constructive debate, Council determined cutting services was not desired. The final 2023 budget was ultimately passed at the January 10, 2023 regular meeting of Council after a public presentation. No members of the public attended any of the meetings to provide input nor provided any written submissions.

The 2023 budget was passed with an inflationary increase of 4.43% plus a 0.75% Greening Levy and a 1.0% Infrastructure Levy. The total 2023 increase is in addition to previously approved expenditures. As a result, the total 2023 increase on the Township portion of an actual tax bill is approximately 13.89% and consists of:

1. 4.43% inflationary increase (Provides for current service levels to continue while recognizing financial pressures faced by ratepayers)
2. 0.75% Greening Levy (Towards combatting the climate emergency)
3. 1.0% Infrastructure Levy (Towards tackling the infrastructure deficit all municipalities in Ontario are facing as a result of aging infrastructure in roads and bridges)
4. $145,500 (approximately 2.25%) Service Level Adjustment (Approved in 2022 with 50% implementation deferred to 2023)
5. $353,010 (approximately 5.46%) Recreation Complex Debenture Payment. (Construction contract approved December 2021. Debenture approved March 2022 with partial payment due in 2022. Remainder of annual payments applicable in 2023 budget)

The 2023 budget was challenging to prepare with inflation being very high and the cost of construction having ballooned exponentially. Important factors to consider:

• Inflation at the end of October sat at 6.9% overall
• Major costs the municipality incurs such as fuel, salt, aggregates, construction materials and equipment have increased by 15 - 40% or more.
• One percent increase in the Township’s 2023 budget yields approximately $64,600

Quick Facts:

• The recreation complex debenture cost is a one-time increase. Further increases will not occur as a result of this debenture.
• The service level increase is also a one-time increase but would be affected by future inflationary increases.
• The Township administers tax bills sent to residents which include tax levies collected for the Township of Wellesley, Region of Waterloo, and School Boards (Education Tax).
• The breakdown of these levies is approximately as follows:
  • Township of Wellesley- 31%
  • Region of Waterloo- 53%
  • Education Tax- 16%
• The Township of Wellesley’s levy increase applies to the Township Levy only.
• The Region of Waterloo’s levy increase applies to the Region Levy only.
• School Board levy is unchanged for 2023.
• Your homes assessed value is determined by Municipal Property Assessment Corporation (MPAC) and currently uses 2016 assessed values. (Current average in Township of Wellesley is $389,393.)
• The assessed value does not reflect what a home is worth today. MPAC will begin reassessing homes again shortly.
• An increase in assessed value as a result of an overall MPAC reassessment does not mean property taxes will increase. The Township must balance our budget so taxes collected will not exceed the amount of tax dollars required to run the municipality. As the total assessed values rise, tax rates would drop keeping the taxes levied per home in the same proportionate manner as before reassessment.
• Individual assessed values and corresponding tax consequences would only be affected if property owners make improvements to their property.

Sample calculation of tax levy impact on total tax bill (for illustration purposes only)

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Media Contact:
Kaitlyn Draker
Executive Assistant
Direct Line: 519-699-3940
kdraker@wellesley.ca
www.wellesley.ca

Attachments

Township of Wellesley 2023 Budget Increase