A 5.5 per cent tax rate increase is being proposed for the 2024 budget on Pelee Island.
Council will be presented with the proposed budget during their meeting this evening, with a rate increase that falls near the median of other municipalities in Essex County.
The municipal tax levy is just over $2-million, and in 2024, a one per cent tax rate increase equals just shy of $20,000 for the Township to address current needs of those living on the island.
Cathy Miller, the mayor of Pelee Island, says they are facing the impacts of inflation, the same as other local municipalities.
A large portion of this budget includes improvements for roads and infrastructure, such as the airport, as well as improvements for flood mitigation, shoreline, and drainage on the island.
Miller says if the 5.5 per cent increase is approved, it would net about $26,000 for the Township.
"We have a very large portion of our island is farm class tax, and conservation class, so typically when those properties change lands there's an adjustment to the tax rate from residential to agricultural, or residential to conservation tax, and so then there's an adjustment."
She says they're facing the same pressures as other municipalities.
"Inflation is high, property assessments - we're still waiting for the MPAC [Municipal Property Assessment Corporation] property assessment to be adjusted from 2016, we're eight years on on that, and it's become very challenging to raise the money needed within the municipality, Pelee is not unique in this regard."
The mayor says infrastructure remains the largest item that is the most difficult to fund.
"Those are the questions we get most often around roads, around shorelines, and they're justified. And it can be really challenging to raise those funds without federal or provincial funding. So you'll see for our budget deliberations, a total tax levy of about $2-million there is not a lot of wiggle room."
While the budget is being proposed this evening, the public can comment on the budget until June 3.
The final budget will be presented and deliberated to Pelee Island council on June 11.
Council meets tonight at 6 p.m.