Essa residents could see a 4.3 per cent increase in their municipal taxes this year.

The proposed increases were mainly caused because of the increased costs incurred by a new contract for Nottawasaga OPP, said township treasurer Julie Barrett. The contract comes into effect this year and provides provisions for the hiring of three additional officers, and one sergeant this year. There will be three additional officers hired for the next five years.

The contract has caused the overall police budget in Essa to rise about 15 per cent, from $1,964,23 to 2,249,120.

In 2007 the township made about $500,000 from the sale of municipal land, but this year that revenue will not be available, Barrett said. It had helped to decrease the burden on taxpayers last year.

Ongoing and recent Ontario Municipal Board hearings and decisions have also caused the planning budget to almost double, to $475,714. Last year the township spent $31,314 on OMB expenses, where as this year's draft budget allots $225,000. Township staff would not comment on the ongoing legal proceedings.

The township is currently in the closing stages of a five-year legal battle with Barrie Paintball, which could see the township pay as much as 400,000 in damages.

Township staff had suggested additional cuts to the budget to try to bring down the tax increase, including reconstruction of a small part of the 8th Line north from County Road 21. It would save the township about $350,000. Township staff also recommended selling the Elmgrove Hall, which is estimated to fetch about $120,000. It is still pending a proper assessment.

A decision on the new Angus library branch is hinging on the approval of provincial grants, which is to be announced March 31. If the library does move forward, it would not affect the 2008 budget, Barrett said.

At the last budget meeting, council directed staff to make changes to the budget that would bring the increase in at 4.3 per cent. Township staff will present budget revisions for approval at the next budget meeting April 16. It starts at 3 p.m. in the council chambers.