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Petrolia councillor pitching another tax cut idea

January 23, 2025

Heather Wright/The Independent

Petrolia Councillor Chad Hyatt is going to try again to bring down Petrolia’s taxes – this time in 2026.

At the next council meeting, he’ll ask councillors to approve a move which would shave one per cent off the three per cent tax increase slated for 2026 after the Ontario government provided extra cash for policing.

Town council agreed to a three per cent tax increase – about $97 more for the average home assessed at $194,000 in November. One reason for the increase was the cost of policing. The OPP contract increased by $240,000. Three days after the deliberations, and before it was finally approved by council, the province provided cash to cover most of the increase.

Hyatt suggested the budget should be reduced by the amount the province was providing.

But his council didn’t agree. Some suggested the extra would be a surplus which would then go into the capital working reserve at the end of the year. But Hyatt, speaking to The Independent Tuesday, said the money collected was meant for the operations of the town, not capital.

He’s suggesting to council to set up a specific reserve for operating expenses so that the surplus could be directed to pay for operating expenses, as it was collected for originally.

Hyatt’s motion calls for one per cent of the municipal tax levy – about $66,000 – be put into a new tax reduction reserve and applied to the 2026 budget. that money would come from the money sent from the province to cover the OPP costs, he added.

The move would bring the projected three per cent increase down to two per cent.

Hyatt is “very hopeful” his idea will be approved adding councillors were likely caught off guard the last time he suggested reducing the taxes.

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