Staff is suggesting a remedy that could result in virtually no tax increase this year.
In a report to be presented to council at its committee of the whole meeting later today, staff is recommending that council consider establishing a tax stabilization reserve.
Staff explains in the report that for the year 2020, they estimated new growth assessment to be at $106,160. However, it was higher than expected and came out at $431,000. Now staff is recommending that $325,000 of that sum be moved to the tax stabilization reserve to help reduce the overall 2020 tax impact to zero.
This move would reduce the overall financial impact on the average residential taxpayer from $11.91 per $100,000 of current value assessment to zero compared to the 2019 tax bill.
As well, staff will present a year-to-date report outlining COVID-19-related financial impacts seen since its last report on April 22.
The preliminary scenarios presented an estimated potential net deficit of $32,816 to $299,654, has been reduced by additional cost-containment efforts totaling approximately $172,000. The cost containment efforts are related mainly to reduction in salaries, wages and mandatory employment-related costs.
At this point, the staff report says, the updated estimated potential net deficit is between zero and $128,002, under three different scenarios. The three scenarios estimate revenue reductions to the entire budget at 10%, 25% and 50%.
Council will start with its regular meeting at 7 p.m., and it will be followed by the committee of the whole meeting at 7:30 p.m. Council will wrap up the evening with a special council meeting, which includes a closed session.
Simcoe North MP Bruce Stanton will also be attending the virtual meeting for a presentation. As well, during the regular council meeting, elected officials will discuss the a $10,000 funding request towards a virtual physician program.
The committee of the whole meeting agenda also includes a fee waiver request by Argee Boat Cruises for the berthage of Georgian Queen at the municipal wharf. The sum is about $6,000.
Staff is recommending that the request be denied, as the vessel is docked at the wharf, and further that a total or partial exemption from a levy, charge or fee, to a business is prohibited under the Municipal Act. However, staff is recommending that a three-month payment due date deferral be granted in keeping with similar municipal initiatives afforded to other locally owned businesses.
Further, Ship's Company of Penetanguishene, a non-profit, which pays $896+HST and hydro fees to house two boats next to the museum, is also asking for a fee waiver. In its report, staff recommends that the fee be waived, however, that the Ship’s Company continue to pay the hydro fees.
All agenda are available online on the town's website.
