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Insurance, gas and inflation drive up DE taxes

February 13, 2023

Dawn-Euphemia’s tax bills are headed up 5.9 per cent.

And while Mayor Al Broad isn’t happy about the increase, he says inflation and increasing insurance costs are among the things making it difficult to keep costs in line this year.

This year, Dawn-Euphemia’s insurance rates are up 17.6 per cent. That’s more that $33,000 on the $190,000 bill. Treasurer Mark Seguin says that alone drives up the municipal tax rate 3.5 per cent.

The township also is putting about $950,000 in the budget to buy gravel for the roads. Councillor Mark McGuire suggested if council wanted to drive down the tax rate, it could cut back on how much gravel it purchases. But he added “if you cut it this year, we’ll have to make it up the next year.”

McGuire added because of the increasing cost of gravel, the $950,000 won’t buy as much as last year. “We’re paying 30 per tonne,” said Public Works Manager Paul Dalton, adding that’s much more than years past.

And he says, the township had to increase the fuel budget for public works by 35 per cent – to $135,000 this year – because of rising gas prices.
Broad says council did not resort to cutting reserves to bringing down the tax increase, mostly because there are larger projects coming down the line which can’t be paid all in one shot.

Councillors agreed to put $80,000 per year for the next eight years so a new pumper truck can be purchased. Right now, they cost about $600,000.
It’ also put away $100,000 to help purchase a new salt truck in 2026. Another $10,000 has been placed in reserves to help purchase a new generator for the Dawn-Euphemia Community Centre in 2026.

Broad says councillors are satisfied in a time of rising costs, this is a solid budget for the community.

“A lot of communities are pulling money from reserves to keep the taxes down. I don’t think we should do that. And I don’t know where else we could cut.
“As much as I don’t like a 5.9 per cent increase…that increase won’t even cover the cost of gravel and the insurance increases.

“We are not exempt from inflation and in a $4.4 million (operating) budget a 5.9 per cent increase is a lot different than an increase of three per cent on a $10 million budget.”

Broad added, “I’m never going to be happy sitting here with a 5.9 per cent increase.”

Councillors agreed. Paul LeBoeuf says councillors could find more savings “ but in five years when you need money, then what do you do? It’s better we have a small increase now.”

McGuire added as it stands the budget is “pretty lean” already.

BY THE NUMBERS
√ $4,443,806 total budget
√ $950,000 – the amount of money spent on gravel in 2023 for Dawn-Euphemia roads
√ $135,000 – the amount of cash set aside for fuel in the public works department
√ $100,000 – the amount which was set aside last year
√ $70,000 – the amount cut from the community centre budget. It was to buy a new sound system. The township is looking for a grant instead
√ $19,000 – the cost of a new stove for the community centre
√ $30,000 – the amount of money set aside to buy land around the Shetland library for expansion
√ $188,000 – the amount of cash council socked away for future projects such as a new fire pumper
√ $50,000 – the cost for testing Florence septic systems in 2023
√ $20,000 – the amount set aside last year
√ $ 628,087 – the amount Dawn-Euphemia received in grants in 2022
√ $429,500 – the amount estimated to be received this year. that’s $198,587 less than in 2022.

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