Hampstead’s local tax increases below inflation for fourth year in a row

I am pleased to announce that the local tax increase for single family home owners will be 1.9% in 2011. The Conference Board of Canada predicts that inflation will be 3.2% in 2011 so this is quite an achievement. For owners of duplexes and condos the local tax rate will actually be decreasing, as the valuations of these properties did not rise as much as those for single family homes.

This is the fourth year in a row that we have had local tax increases below inflation. The increases for the past 3 years have been 1.6%, 0% and 2% - all below inflation.

However, our tax bills have two components. We also pay for Agglomeration services. This charge is itemized separately on your tax bill. Last year Montreal raised Agglomeration taxes by a shocking 12.6% and this resulted in the average tax increase in Hampstead being about 6%. This year, Montreal was almost as irresponsible in allowing spending to increase by 7% in 2011. Hampstead’s Agglomeration tax rate for single family homes is only increasing by 4.3% due to the fact that Hampstead has no industrial or commercial properties. Overall, the single family home owner will see a total tax increase of 3.2% when the Agglomeration portion is included.

So how do we keep tax increases low while our accumulated surplus grows (now expected to be over $1.5 million by the end of 2010) and our debt service ratio remains one of the lowest on the island? There are many reasons. We have been very aggressive in seeking government grants for much needed infrastructure work. Over $1.7 million was obtained this year. In 2006, we were the only suburb to take an interest free loan from Quebec. This will save the town about $3.3 million over the life of the loan. Most importantly, we are improving the town in ways that increase its attractiveness to new residents. Being an attractive town encourages people to invest in rebuilding existing homes. Once rebuilt, these 'new' homes are taxed at a higher valuation thus decreasing the tax burden for the remaining single family homes. It is a virtuous circle and why our house valuations are climbing faster than those in Westmount and TMR. Finally, the management of the town, led by our Director General, Richard Sun, work very hard to provide top service at the lowest possible cost.

Dr. Bill Steinberg is the Mayor of the Town of Hampstead.

Republished from The NDG Free Press.