Prescott Town Council has voted down a proposal from the Association of Municipalities of Ontario.
A few months ago Councillor Ray Young attended an AMO meeting where it was suggested that the provincial share of the HST be raised by 1%, with all the money going directly to municipalities for infrastructure repairs. Under the proposed action plan there would be a single per cent added to the provincial portion of the HST, raising that section from eight to nine per cent for a total of 14 per cent.
Councillor Mike Ostrander said he thought this was a totally viable way for smaller municipalities to get some relief, pointing to some surcharges the government apply that go unnoticed for months at a time.
According to the numbers Young received at the meeting the municipality would receive around $1.15 million each year. He pointed out how much good the town could do with that added revenue. Councillor Teresa Jansman said she found the money appealing but also worried about what it would mean for the average income. According to Jansman the AMO didn’t have that information for her and the number she worked out with Treasurer Mathew Armstrong seemed like too much. Councillor Fraser Laschinger echoed a similar sentiment, noting that it sounded wonderful but he was worried about how it would affect the cost of living for the lower and middle class. Councillor Leanne Burton agreed that in seemed like something worth considering but there were currently too many unanswered questions.
Mayor Brett Todd said at the present time he could not support the increase as it was presented. Todd said he would like to see whatever government is in charge after the June elections address this again right away because there is something to the idea but it needs to be refined. Councillor Lee McConnell was not at the meeting.
The final vote was 4-2 against the AMO proposal, with Ostrander and Young voting in favour. Prior to the vote Young reminded everyone that they were not voting to change the tax, only to see whether Prescott supported the idea or not. He also pointed out that even if they don’t encourage the tax increase the province can do it anyways, and may not give the money back to infrastructure.
