Canada’s Consumer Price Index increase for next year will be reflected in a 1.9 per cent rise in Fort Frances user fees over 2025.
Each year when work begins to ink the municipal operating and capital spending plans, one of the first tasks is to nail down the baseline user fee increase. Then a comparative pricing review is undertaken against fees at other similar municipalities.
Any necessary adjustments are made then.
According to a staff report to council, the Ontario CPI indicates inflationary increases of 1.7 per cent for August 2024 to August 2025.
The Canada CPI suggests a user fee increase of 1.9 per cent for 2026.
Councillor Michael Behan asked Dawn Galusha, the town’s treasurer, if the 1.7 per cent CPI is the average for the province.
“And I’m presuming that northern Ontario in general, northwestern Ontario in particular might have a CPI higher than that given where we live,” Behan said.
Coun. Behan asked if figures closer to the regional impact were available.
“I think any user fee increase should be based on the reality of what we’re facing here, not necessarily the average for Ontario or Canada, for that matter,” he said.
Galusha said she couldn’t offer a guess about what that region-specific figure would look like.
“However, I do agree with you,” she said.
“We’ve always… in my time and the past treasurer’s time, used the Ontario CPI. I don’t believe I can get the data for just northern Ontario.”
And that’s why that figure isn’t provided. But another increase value could be used, she said.
Behan said the municipal labour cost is expected to increase two per cent in 2026.
“Should our user fee increase at least match that so that we’re not losing money?” Behan said.
Mayor Andrew Hallikas asked if Behan was suggesting a change to the 1.7 per cent CPI rate.
“I know that we’re trying to keep user fees as manageable as possible because I want to make sure we don’t price our programs and services out of reach of our residents,” Behan said.
“But we’re also in tough budget years and I want to make sure that we’re not short-changing ourselves, so to speak.”
Council should try to cover at least the town’s labour budget, he added.
It was moved that the increase be amended to reflect the higher CPI.
“A lot of times taxpayers are footing the bill for things like the Memorial Sports Centre that they’re not using,” Coun. Bill Morrison said.
“So I really don’t have an issue with the user fees, being a user myself, instead of raising taxes for everybody else to cover some of that stuff.”
