Getting your Trinity Audio player ready...

Costs are going up and the Town of Kenbridge has to raise multiple tax rates in order to keep services going. That’s how town officials framed the argument, after the council voted during their Tuesday, April 15 meeting to make the changes. The unanimous vote came after a public hearing where nobody spoke about any of the topics under review. 

The tax rate increases will see Rolling Stock tax and Machinery and Tools tax increase, with a bump from $.30 per $100 of value to $.60 per $100 of value.  The increases will also impact two business license rates, with an increase for the Contractors Business license from $.10 per $100 of value to $.16 per $100 of value and a bump for the Retail Business license from $.12 per $100 of value to $.15 per $100 of value. 

“As we all know, everything in our world is getting more expensive to operate. We would like to provide our town citizens with the best services that we can,” said Kenbridge Town Manager Tony Matthews. “This is the time of year we analyze the cost of these services versus the revenue that is used to make those services take place within the town.”

Kenbridge makes an adjustment

Matthews added that the rate increases bring the town in line with the surrounding areas. Towns take into consideration factors like inflation and economic growth or decline when considering tax increases. Kenbridge’s tax rates are below the regional mean for several of its fees, which is directly proportional to the revenue the town has to provide services for citizens. In other words, over the last few years as costs increased, the town didn’t pass that on to residents but absorbed it as best they could.

Now, however, it’s reached a point where there’s just no way to absorb additional increases, while still maintaining the same rate of service. That’s been a comment heard by the Dispatch and our sister papers a lot over the last few months, as counties and towns look at tax rates. Nearby Prince Edward County, for example, used that argument last week, with staff saying they simply didn’t have the funds to keep absorbing increased costs without a rate hike of some kind. 

For the long run, both Kenbridge and Lunenburg officials hope that growth will help fund the town’s needs. Both Kenbridge and nearby Victoria are singled out as growth corridors in the newly approved Lunenburg-Kenbridge-Victoria Comprehensive Plan, which was unanimously voted in by all of the political bodies involved.

“These towns provide essential public utilities and a variety of concentrated business services, including grocery stores, restaurants, and parks,” the plan states. “Additionally, they offer educational facilities, healthcare services, and recreational amenities, making them attractive locations for new residential and commercial developments. The availability of these services supports the growth and development of the surrounding areas, ensuring that the needs of residents and businesses are met efficiently.” 

As for now, however, town council members hope that a slight increase in the taxes and fees will cover costs.

When does this change?

So now the big question. When will Kenbridge residents start seeing the change? The answer is in roughly three months time in some cases. For others, it will be over a year before you notice a difference. 

The tax rates take effect in Kenbridge during the upcoming tax cycle beginning July 1. The business license rate increases take effect for current business license holders on the license renewal date of March 1, 2026 while any new business in Kenbridge are immediately impacted by the new proposed rate. Matthews encouraged residents with additional questions about the tax increases to reach out to the Kenbridge Town Office at 434-676-2452.