Thorold has faced a huge growth spurt in real estate over the last few years, with new subdivisions coming into the city. This means that Thorold households will now have to pay about four percent more in city taxes this year. This hike goes into effect with the 2017 budget increases.
Why the increase?
The 1.5 percent tax increase will be used to help pay for infrastructure investments such as roads, sewers, fire stations, etc. This increase is crucial to qualify for future provincial and federal funding of infrastructure projects.
The 2017 budget also includes new staffing positions in planning, as well as building and engineering departments. This growth in the city’s municipal investments is needed, and yet comes at a cost, and is the cause for the tax hike.
Municipal funding needed
Thorold has been underfunded in the areas which it’s planning to start addressing now, and Thorold’s finance director estimates that funding gap to be about $17.5 million over the next 10 years. As well, with new residential subdivisions coming into the city, there is a greater need for more staff to help city hall deal with the influx of work they face due to the growing population.
The city is attempting to address these problems now before the tax hike required to finance the initiatives comes at a dramatic cost to Thorold homeowners. Updated municipal services are needed, and if they are not dealt with now, taxpayers would face heftier hikes in the future.
What does this mean for new homeowners?
The original increase was expected to be 4.3 percent. This prediction had homeowners predicted to be paying $56 more in a year in property taxes on the average home (assessed at about $227,000).
The average homeowner will be paying a little less than that with the finalized budget at only 4 per cent.
