Preliminary estimates suggest Sarnia ratepayers could be facing a property tax hike of between 8.1 and 9.8 per cent in 2016. At a strategic planning session Monday, expense pressures were outlined for city council including $500,000 for the tax stabilization reserve, nearly $400,000 in anticipated WSIB claims, and $250,000 for winter maintenance.
Revenue pressures of reallocating tax revenues for assessment appeals, bingo/lottery license fees, and local improvements will also affect the budget.
Director of Finance Lisa Armstrong says increased spending of up to $2.5-million is a very early estimate that may well change.
"2016 is a very difficult year with a number of items that are one-time items."
"I think with any budgeting process, there are changes," says Armstrong. "Perhaps increases, decreases, etc, as more information becomes known and decisions are made with respect to the items of question."
Armstrong says reports on key issues will be brought to council, as well as a package detailing departmental budgets and a comparison to past years.
Councillor Mike Kelch noted to council that "2016 is in many ways a year of correction."
"We are seeing things pop up for next year that we are not seeing every year," says Kelch. "I have a lot of faith in the process. It has improved every year we've done it, and it will improve again this year."
In another presentation to city council, Water/Sewer Analyst James McNaule informed council on the 10-year reserve plan. Staff say the city remains on track to eliminating debt by 2032.
The city has a $125-million budget this year. Budget deliberations begin on December 1st.
