Huron-Kinloss Council now has two budget options to lower the tax rate.
Treasurer Jodi MacArthur says one option would lower the actual tax rate by two per cent, but it would still mean a property assessed at 200 thousand dollars would pay 120 dollars, or 5.2 per cent more in taxes this year.
If council chooses this option, it would mean 100 thousand dollars in road paving would not take place this year.
The other option is a 1.3 per cent drop which would mean 146 dollars, or 6.3 per cent more in taxes for a property assessed at 200 thousand dollars.
The reason taxes will still go up is because of reassessment that took place last year where property values increased by an average of 7.7 per cent.
Councillor Don Murray says when it comes to paving projects, they need to take a close look and do the worst roads first.
Murray prefers the option with the least impact on ratepayers.
He’s concerned that higher taxes will be too much of a burden for unemployed residents.
Murray says many township residents work for auto parts manufacturer Wescast in Wingham where layoffs have been announced, or at Volvo Road Machinery in Goderich which will be closed by next year.
Councillors voted informally on the two options and the result was tie.
Mayor Mitch Twolan was absent from last night’s meeting so council decided to withold any further decision until the next council meeting.
Council will decide on which budget option to go with at the April 6th meeting and the budget by-law will be presented for approval on April 23rd.