Espanola council had asked the staff to come back with a municipal budget that would save some money when it was determined the draft budget, delivered over two weeks ago, was sitting at a 5.99 percent increase.
Of that, 2% was attributed to the closure of the mill, which is a fixed cost, with the rest of the municipal portion sitting at 3.99%.
The council wanted to see if the staff could save at least 1 percent.
Town CAO, Clerk Joe Burke presented a report Wednesday night that had two options.
In the budget presentations to date, the proposed 5.99% tax increase was presented based solely on the municipal portion of property taxes.
When considering both the municipal and education tax components together, the actual overall increase to the tax bill is 5.48%, equating to approximately $153.10 per household more than last year or $12.76 per month.
This is because the education tax is not increasing in 2025.
This clarification provides a more accurate representation of the total tax impact on residents (the amount actually paid by the ratepayer) if the budget was accepted as presented.
Option 1 included cancelling some purchases of equipment for the public works office, the library and the gym, a more proactive approach to bylaw enforcement, Rainbow District Bylaw Enforcement Services has agreed to take on these additional enforcement responsibilities at no additional cost if the Town is willing to sign a ten-year agreement, and a reduction in casual support for the municipal office front reception, which would save $42,000 bringing in the 1% reduction council asked for.
Option 2 included all the above, but also included reducing one student for Public Works, and pausing some work under the economic development envelope for another $38,000 in savings.
Councillors were not supportive of Option 2, since they generally agree, that economic development has to be a key focus moving forward, especially in light of the closure of the Domtar Mill.
In the end, council has asked staff to come forward with the final Budget 2025 to include Option 1.
The reduction means an overall tax increase of 4.99%, which works out to $139.30 in additional taxes for a property appraised at $154,000, an average of an additional $11.60 per month.
Burke thanked the staff for their work and will bring the final budget proposal back for approval at the February 11th meeting.
Mayor Doug Gervais also thanked the staff for their hard work adding he realizes there is still an increase, but the budget will allow them to sustain services over the next year.
He also thanked the public for their continued support, especially with keeping taxes at a minimum for 2025.
