Feb 03, 2010 - 02:22 PM

By Reka Szekely

AJAX -- Ajax council is set to approve a 2.75-per cent tax increase following a public meeting on the issue on Monday.

The tax increase affects the Ajax portion of the property tax bill and amounts to $30.45 on the average home assessed at $293,600. The figure does not include the Regional and education portion of the tax bill.

Only two residents spoke at the meeting. Stanley Szyszki questioned the tax increase because of the state of the economy.

"With this time right now, we have a bad situation," he said. "I'm not getting an increase, not even a penny. Water's going up, harmonized tax is going up ... I see in the budget everything is going to increase."

Led by Councillor Joanne Dies, who served as budget chair, the message from councillors and Town staff was that council had kept its promise over their four-year term to drop the tax increase .25 per cent each year, ending up with the current 2.75 per cent. They argued Ajax has had the lowest average increase over the past three years.

"I invite anybody who advocates going from 2.75 per cent to zero per cent to say exactly where they would take services (away) from the people of Ajax, or what staff would be laid off," said Mayor Steve Parish.

He added that the bulk of the Town's costs are staffing and the nine new positions created are needed to maintain services. Service increases in 2010 are limited to increased grass cutting in the summer and recycling in parks.

Ajax resident and council watcher Michael Baker also disagreed with the suggested tax increase.

"I believe the people of Ajax deserve a budget with no tax rate increase."

He said there should have been more public consultation during the creation of the budget and he questioned the use of the slots money. Ajax is receiving an extra $1.4 million in 2010 in addition to the $5 million it receives annually because of the expansion of the OLG facility.

"Council should be consulting regularly with the voters of Ajax as to how this money should be spent," said Mr. Baker.

As it stands, the majority of the slots money is applied to reserves for infrastructure (such as roads repair) and debt reduction.

Rob Ford, Ajax's director of finance, said drawing $6 million from the debt reduction reserve for the construction of a new community centre will save taxpayers $2.8 million in future interest costs and $591,700 in annual debt costs. The project as a whole will cost $25.75 million.

Currently, the infrastructure reserve paid for by the slots is earmarked for new road maintenance, new trails and economic growth projects. The eligible uses will expand to include trails maintenance and rehabilitation. Between 2010 and 2014, almost $8.8 million is expected to be spent on those projects. The lion's share, almost $7 million, will go towards roads maintenance.

Mr. Baker disagreed with a number of items on the Town's list of key projects including bicycle lanes, new trails, customer polling and a new residents' guide. He also questioned why councillors were receiving a pay hike in 2010.

The mayor will receive almost $3,283 more this year and councillors will receive $2,380. The mayor's travel allowance will increase by $1,000 and councillor's will increase by $800.

Following the meeting, Coun. Dies said a citizens' committee in 2007 had recommended council salaries and travel expenses be based on the average in Durham's lakeshore municipalities and the increases are in line with that.

Although councillors addressed Mr. Szyszki by name when justifying the tax increase, he was not won over.

"I'm not happy, it's not supposed to be like that," he said. "So many people are out of a job."

Though they asked questions, councillors did not move to make changes to the budget presented to them and they passed it unanimously at the committee level. Final budget approval comes at next Monday's council meeting.