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Ladysmith Council narrows municipal budget increase to 3.75%

Initial increase was 4.6 per cent

At the Dec. 3, 2024 meeting Ladysmith Council approved a municipal tax levy increase of 3.75 per cent for 2025.

This marks a reduction from the originally proposed increase, achieved through a series of adjustments to the budget.

Director of Financial Services Erin Anderson presented the draft 2025 budget at the Nov. 19, 2024 meeting and provided an in-depth review of the general operations budget.

Initially, the proposed increase stood at 4.6 per cent, driven by rising costs in key areas such as employment, contracted services (including increased RCMP costs), and fire department transitions to a paid-on-call compensation model.

Responding to council concerns about the impact on taxpayers, a motion was passed directing staff to return with options to reduce the increase to between 3.6 and 3.75 per cent.

At the Dec. 3 meeting, council reviewed a revised report that outlined steps to lower the increase. Among the significant changes was a reduction in the Reserve to Offset Return on Investment (ROI) Increase by $81,500. This adjustment was made to reduce the impact on taxes by using additional income the town expects to earn from investments.

Other strategies included using money from a reserve fund set aside for solid waste services to cover the rising costs of contractors and reducing contingency funds while ensuring enough remains in the budget for unexpected expenses. Staff also suggested using surpluses from previous years’ budgets to pay for short-term staffing positions.

The final motion directed staff to include the proposed projects in the 2025-2029 financial plan and confirm the municipal tax levy at $8,713,484, reflecting the 3.75 per cent increase.

The approved tax increase balances the need to address rising operational costs and infrastructure demands with the council’s commitment to minimizing the financial burden on residents.

While reserve reductions and strategic adjustments can provide short-term relief, staff and council acknowledged that ongoing challenges will require continued attention in future budgets.



Morgan Brayton

About the Author: Morgan Brayton

I am a multimedia journalist with a background in arts and media including film & tv production, acting, hosting, screenwriting and comedy.
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