Essex council approves 3.11% property tax hike

Essexcouncil approved a 3.11 percent municipal property tax increase Monday night.

A report presented to council stated thetax hike is expected to generate a surplus of $96,327,which will be set aside for asset management.

In March, council approved ataxincreaseto compensate for a reduction in the tax rate for school boards.While the school board tax increase came in lower than initially estimated, council opted to "put reserves aside for future asset purchases," said deputy mayor Richard Meloche.

"This is an opportunity for us to put some money aside in asset management, as a reserve, and lessen the burden as we go forward in the future.years," Meloche told CBC. "Right now we have several assets that we know will need replacementover the next several years. Fire trucks are one of them. Another one is roofs for different municipal buildings that we own. There arepark amenities that we need to add for different sporting activities that we support in the Town of Essex."

The increased municipal rate is balanced by the decrease in the school board tax rate, said Meloche.

"It works out to right around two percent for our urban centres and right around 1.67 percent for our rural areas," he said.

The town's 2017 operating budget is estimated at $38.7 million.