Some northern Ontario towns see double-digit tax hikes this year

The mayor of Black River Matheson, Doug Bender, says his council hasn't changed much in its 2023 budget, "other than keeping the lights on." 

But still, the township needs 34.5 per cent more money to keep operating. 

It's a similar story in Cobalt. 

The northern Ontario town's manager, Steve Dalley, says "no particular item caused" this year's 12 per cent tax increase. 

Both say the hikes are necessary to break the pattern of using reserve funds to cover day-to-day expenditures. 

Reserve funds are meant to cover unexpected expenses or contribute to important capital projects. 

To avoid being in a deficit, Cobalt took more than $300,000 from its reserves over the past two years. 

The fact of life is that municipalities cannot run deficit budgets like senior levels of government- Doug Bender, mayor of Black River-Matheson

It's a move that is not sustainable, according to Dalley. 

"That's why we're looking at avenues for increased revenues to replenish the reserve," he said. 

Black River Matheson has also heavily depended on its reserve funds to cover expenditures over the past few years. 

The situation leaves the present council with "a very severe issue to deal with going forward," said Bender. 

"The fact of life is that municipalities cannot run deficit budgets like senior levels of government." 

Relating the information to ratepayers

Bender said there has been misunderstandings in the community about what the tax hike entails. 

"Everybody's individual taxes will vary based on their basic impact tax assessment." 

Residential and commercial taxpayers will also see an increase, but it will vary according to their classification. 

"From what I've seen, it can vary anywhere from six to 10 percent increases for the residential tax," Bender said.

Bender himself owns a multi-residential building, and admits his case involves something more significant than a 10 per cent hike, but insists that the move is necessary. 

"We've made a very tough decision," he said. "We are hoping to bring in more residents, we don't want anybody to leave." 

He said the mining industry is making "major moves" in the area and the township has to position itself to welcome an influx of workers in the future. 

"Instead of spreading the headaches over future years, we need to get this done now." 

Dalley said Cobalt councillors were also concerned about ratepayers' reaction to the tax hike. 

"We created an ad hoc committee for this," he said. "It went through the budget line by line." 

Dalley said the increase may seem like a lot when looking at the dollar increase, "but it runs in line with inflation to keep and maintain current services." 

Elsewhere in northern Ontario, Greater Sudbury approved a 3.7 per cent tax increase in its 2023 budget.