City administration's plan to end homelessness would mean a mill rate increase of 21.73 per cent
If a city administration report to end homelessness was to be passed by council, the mill rate would see an increase of more than 20 per cent next year.
Property taxes would rise a total of 21.73 per cent in 2023 and 4.24 per cent in 2024.
That would mean the average home valued at $315,000 would be paying $40.59 more per month in 2023 and $11.90 more per month in 2024.
According to the report, the estimated cost to fund the motion is $98 million in capital investment and approximately $25 million in annual operating costs.
The estimated cost is based on a point-in-time count (PIT) that was conducted in 2021 that said 488 supportive housing units would need to be provided.
“The cost to build supportive housing units is about $200,000 per unit. So that's factored into the cost,” Barry Lacey, executive director of financial strategy said.
“Then there requires services, obviously wraparound services, required to support those individuals.”
The city continues to invest $7.9 million annually towards programs and initiatives related to homelessness, social development and well being.
LAWSUIT OVER HOMELESSNESS
Councillors Dan Leblanc and Andrew Stevens, along with advocates, are taking the city manager to court hoping to force administration to include the cost of ending homelessness in the city’s budget.
“There is an illegal action, which is not following the direction of elected officials and so it needs legal recourse to get it back on track,” Coun. Dan Leblanc said.
Leblanc believes the cost of solving homelessness in the report is inflated.
“City administration came back and said about $50,000 per individual, I would say that number is high,” Leblanc said. “Phoenix Residential Society has been doing this work since 2014 and pays about $33,000 a year to house individuals.
If successful, Leblanc insists that council will then be able to debate a total amount of money to be allocated to homelessness.
“If we are successful, if the democratic direction of council is upheld, the city manager will be directed to put $24.9 million into the draft budget,” Leblanc said. “Then I think we can have a serious discussion of what it would really cost.”
Mayor Sandra Masters said it is not the city’s responsibility to solve homelessness and the motion council agreed to in June was to discuss the issue during budget debates in December.
Pending any delays, the City, along with Coun. Leblanc and Stevens are expected to be at Court of King’s Bench on Tuesday, Nov. 29 at 10 a.m.
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