Budget FAQs
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Do you have questions about the 2021 Municipal Budget? You're not alone. Here's a list of Frequently Asked Questions (FAQ) that may provide answers. If you don't see your question on the list, email kingsvilleworks@kingsville.ca and we'll get back to you as soon as we can.
| Can we see the Municipal Finances? |
| You can find the 2021 Draft Budget on our website. |
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Where can we find out more about the Capital Projects? |
| All tax funded capital projects can be found on pages 6-9 of the budget document. Water and Wastewater projects are on page 36. More information on these capital projects will be provided during budget deliberations on January 13, 2021 and January 27, 2021. |
| Leamington and Essex passed 0% rate increases for 2021, why can’t Kingsville? |
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The tax rates in Leamington and Essex are already significantly higher than in Kingsville. We are just trying to catch up so that we can continue to provide the same services. Based on the 2020 rates, similarly priced homes would pay approximately 70% more in town taxes in Leamington! In Essex it would be 19% more town taxes. Even with the proposed rate increase, the tax rates in Kingsville will remain significantly lower than these neighbouring municipalities. The 2.8% increase amounts to $49.37 on a home assessed at $250,000, which equates to less than $1 / week per household. A 0% tax increase is not sustainable in the long-term and will lead to more drastic tax increases in the future, unsatisfactory service levels, or decaying infrastructure. Town administration supports stable, predictable rate increases. |
| Why does the Town of Kingsville use a home assessed at $250,000 as a benchmark to illustrate the impact of rate increases? I can’t buy a house for $250,000 these days. |
| You’re right, you would be hard pressed to buy a house for $250,000 right now. However, your property taxes are not based on current market values, they are based on “assessed values” as determined by the Municipal Property Assessment Corporation (MPAC). Typically, MPAC assesses homes every 4 years, and phases in the assessment increases evenly over a 4 year period (i.e. 25% of the change each year).
2021 was supposed to be year 1 of a new assessment cycle. But due to COVID, MPAC is deferring the start of a new assessment cycle – so there will be no “phase-in” changes to assessment in 2021. With MPACs deferral, all homes assessment is based on the previous valuation date of January 1, 2016. For 2021 tax purposes, the average single family home in Kingsville is assessed at $239,455. The median single family home is assessed at $216,000. Using a $250,000 home as a benchmark actually over-states the financial impact on the average household. |
| Why can’t the Town of Kingsville just be more responsible with our tax dollars? |
| Between Taxation and the Ontario Municipal Partnership Fund (OMPF), the Town of Kingsville operates with significantly less revenue than all of its local counterparts. Please refer to page 2 of this local comparison of “Revenue per household”. The Town of Kingsville operates with $2,152 per household. The next lowest municipality is Lakeshore with $2,403 per household.
If Kingsville was on par with the municipal average of $2,748 per household (a $596 / household increase), it would have an additional $5,358,040 to work with. |
| Can you elaborate on OMPF funding? |
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OMPF is an unconditional provincial transfer payment to Municipalities that find themselves in more challenging economic circumstances. The primary financial indicators are Weighted Assessment per Household and Median Household Income. There is also a component of the grant related to % of farmland vs. total land area. In 2021, Kingsville will receive $751,700 from this grant vs. $857,600 in 2020. In short, our economic indicators, relative to the provincial average are getting stronger so we get less money every year. In contrast, the Town of Essex will receive $3,988,200 in 2021 from this grant. The Town of LaSalle has a high weighted assessment per household, and low farmland ratio, so they typically do not receive any money from this grant. Every Municipality’s allocation notice is posted online if you'd like to check it out. |
| Taxes should not be any higher than rate of inflation. |
This statement is easy to agree with if:
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| Why does the Town need more staff? |
| An independent Organizational review conducted in 2020 concluded that the Town is understaffed in many key areas, and recommended adding 12 new positions between 2021 – 2025. The Town has grown over the past decade but the number of staff supporting the services of the Town has not been increased. This directly correlates to having the lowest tax rates in the County. Understaffed organizations lead to employee burnout, staff turnover and service level deficiencies. The 2021 budget includes 3 of the positions proposed in the Organizational Review. Further details on these positions, and how they will benefit the community were presented at the January 13, 2021 budget deliberation. |
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Why can’t residents vote on tax rate increases? |
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Residents elect Councillors to do homework and make thorough decisions on their behalf. Most residents haven't read the budget, the Town’s strategic plan, asset management plan or other master plans. Most residents do not attend Council or committee meetings on a regular basis to develop a solid understanding of the complex challenges a municipality faces. Tax increases are never popular. But the budget discussion is focused on funding our strategic priorities and setting levels of service. Ask yourself: what is the overall vision for the Town? Which services do we want to keep, cut, or enhance? You may have very strong opinions about this, and we encourage you to participate by reading important documents (such as those referenced above), as well as by watching council meetings and engaging in public input sessions. We also urge you to contact Councillors with your opinions and then trust them to act as your voice in our community. |
