‘No fat to be trimmed’: Wilmot council, staff discuss 50 per cent tax hike in 2025 draft budget

Residents in Wilmot Township are looking at a potential nearly 51 per cent property tax increase in 2025.

At a council meeting on Monday, Wilmot mayor, council, and staff began discussions on the operating and capital budgets for 2025. The report from staff details a gross expenditure budget of more than $33 million with a property tax levy requirement of more than $18 million — a 50.84 per cent increase from 2024.

That out-of-the-ordinary number has made headlines over the past week and was the main point of discussion at the meeting on Monday, which was just for information purposes.

“Previous decisions, previous directions from previous councils and administration have led us to the point we’re at today,” explained Greg Clark, chief financial officer for the Township of Wilmot.

“It’s not about pointing fingers of laying blame, it’s just saying that the cumulative impact of all those decisions has led us to a place where we have minimal reserves, we have minimal capital funding, and we are in a situation where we have a large infrastructure backlog we need to take care of, as well as forward-looking investment and capital.”

Catching up on those capital investments makes up a large portion of the percentage increase.

The report describes the increase as a “significant one-time increase in property tax,” but as Clark explains, that definition does not accurately explain the situation.

“It is one time in magnitude only, but not one time in the fact that it stays in the base,” said Clark. “What we’re meaning is we’re proposing a single big leap that’s going to get us back to the line we’re at, but it’s not a one time cost. That revenue is required indefinitely.”

Under this proposed model, the 2025 budget would set the standard for how much Wilmot taxpayers will pay going forward to meet the monetary demands of the township.

Councillor Kris Wilkinson was understandably against such a massive leap and wanted staff to detail possible outcomes and cuts to make less severe property tax increases possible.

However, Clark explained that there was “no fat left to be trimmed” in the budget.

“Out existing budget is scraped to the bone more than anything I’ve ever seen in my life before in my 10 years in municipal finance,” said Clark.

In rebuttal, Wilkinson noted that since 2005, the population of the township has increased by roughly 5,000 residents, but in that same time, the budget has grown from $6 million to a proposed $33 million next year.

“Not a huge increase in population, a massive increase in expenditures, and I’ve seen an increase in staff. Back in 2005 we had 48 full-time equivalents, last reported numbers in 2022 we had 85,” said Wilkinson. “What I see is a spending problem.”

As explained, no decisions were made on the draft budget at Monday’s meeting, but staff will now take the questions and comments from council and the mayor into consideration before returning to council chambers.

The public can have their say on the draft budget at a meeting on Jan. 7.

The process will conclude and the budget will be finalized on Jan. 16.