Rising cost of fuel could impact next year’s tax increase in Region of Waterloo
The impact of the rising cost of fuel on the Region of Waterloo’s budget is so severe, staff say it may need to be reflected in next year’s property tax increase.
The region operates a large fleet of vehicles, from transit buses to waste collection trucks, so variations in the cost of fuel are felt sharply.
Gas prices in Ontario are expected to jump by 10 cents later this week, the latest increase in a year full of record-setting highs.
“The pressure that we’re seeing on the cost escalation side is probably like nothing we have ever seen,” said Craig Dyer, commissioner of corporate services and chief financial officer for the Region of Waterloo. “Those economic conditions are just placing massive pressure on that budget.”
The current price of diesel is about 50 per cent higher than what the region budgeted for this year, Dyer said. The price of gasoline is about 20 per cent higher.
Transit is one of the biggest pieces of the regional fuel budget, and diesel costs are going to drive up the number in next year’s budget.
"As we go through the 2023 budget deliberations and make recommendations for council to approve, it will definitely include a reflection of the increased price for diesel," said Neil Malcolm, acting director of transit services.
The region says so far, high fuel costs have not impacted service levels and Grand River Transit is working on other solutions like adding hybrid buses to their fleet and testing out electric ones.
"We continue to provide the planned level of service throughout the Grand River Transit system and family of services. But we are very cognizant of the fact that the price is significantly higher than what we budgeted for this year," Malcolm said.
Regional staff are already eyeing an eight to 11 per cent tax increase next year. Where the final number lands could depend a lot on the cost of fuel.
Regional staff also say provincial gas tax allocations are not keeping pace with fuel costs, and they’re requesting council ask the province for more to help keep up.
CTVNews.ca Top Stories
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
Northern Ont. lawyer who abandoned clients in child protection cases disbarred
A North Bay, Ont., lawyer who abandoned 15 clients – many of them child protection cases – has lost his licence to practise law.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Maple Leafs fall to Bruins in Game 3, trail series 2-1
Brad Marchand scored twice, including the winner in the third period, and added an assist as the Boston Bruins downed the Toronto Maple Leafs 4-2 to take a 2-1 lead in their first-round playoff series Wednesday
Cuban government apologizes to Montreal-area family after delivering wrong body
Cuba's foreign affairs minister has apologized to a Montreal-area family after they were sent the wrong body following the death of a loved one.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
New Indigenous loan guarantee program a 'really big deal,' Freeland says at Toronto conference
Canada's Deputy Prime Minister Chrystia Freeland was among the 1,700 delegates attending the two-day First Nations Major Projects Coalition (FNMPC) conference that concluded Tuesday in Toronto.
'Life was not fair to him': Daughter of N.B. man exonerated of murder remembers him as a kind soul
The daughter of a New Brunswick man recently exonerated from murder, is remembering her father as somebody who, despite a wrongful conviction, never became bitter or angry.