Into the storm

2025 budget points to a 6.9 per cent hike to the tax levy

Council heads into budget talks on Monday staring at a 6.9 per cent hike to the tax levy next year. From the $50.8 million budgeted this year, Shire Hall says it needs another $4 million more to run its business next year (actual numbers for 2024 won’t be available until next summer), pushing the tax levy to $54.3 million in 2025. So far.

In 2023—the last year with actual numbers, the tax levy was $47.3 million. This year’s proposed tax levy represents a 14 per cent increase—or a seven per cent average increase since then. Canada’s inflation rate (3.9 per cent in 2023 and 2.3 per cent so far in 2024) is well below the increase in the municipality’s tax levy and doesn’t help to explain ever-expanding municipal costs.

Indeed, next year, the tax levy will be nearly 5.5 times greater than the amount extracted in 1998 from about the same number of people. Had municipal budgets tracked CPI (consumer price index) over the past 26 years, the tax levy would have just approached $20 million next year—$34 million less than is proposed in this year’s municipal budget.

Shire Hall is also looking to push the button on some big capital projects in 2024, including County Road 49 ($44.5 million) and building a new long-term care home ($94 million). So far, Cty. Rd. 49 reconstruction is dependent on financial support from senior levels of government.

Shire Hall will continue overseeing $103 million of ongoing work in its waterworks utility, mostly in Wellington 2025. It has ambitions—not included in this budget—to spend $200 million more on pipes, plants and pumps to bring water from Wellington to Picton. Shire Hall has earmarked another $10.2 million for pipes for the north end of Main Street leading out of Picton as part of its list of continuing projects.

Waterworks debt currently tallies $44.8 million and will require $5 million in loan payments in 2025. Taxsupported debt (everything else but waterworks) is currently $12.7 million before County Road 49 and a new long-term care home is considered.

OPERATIONS HIGHLIGHTS
The General Government line has been on a steady rise since 2019. That year, Shire Hall spent $12.3 million on council, management, the clerk’s office, information technology, HR and such. In 2025 Shire Hall proposes to spend $18.2 million on this budget line—a 48 per cent increase since 2019.

Contracted and professional services account for 13 per cent ($7 million) of the budget, while external agencies and boards will make up 11 per cent ($6 million).

Both the County’s fire service and policing costs are on a steep trajectory, with the OPP budget seeking a nearly 15 per cent raise in 2025.

The County’s waterworks utility expenditures were $6 million in 2023. It is budgeting $6.6 million in 2025—an average five per cent increase to operate the utility. It will, however, collect nearly $12 million from water consumers in their bills next year—money needed to pay down debt on a water tower, trunklines and an overflow tank in Wellington.

NON-WATERWORKS CAPITAL WORKS
Capital funds are used for repairs, rehabilitation, and reconstruction of things the County owns—assets including roads, bridges and buildings.

This year, Shire Hall has earmarked $61.5 million for capital projects. Of that money, nearly $45 million is targeted for the rehabilitation of County Road 49, although municipal leadership has said that without significant funding from senior levels of government, the project will not proceed.

The municipality applied to the Province of Ontario for $20 million of funding through the Housing- Enabling Core Servicing Fund. The municipality should know if their appeal is successful by late 2024 or early 2025. In this event, the County would be on the hook for $7.8 million of the cost.

ROAD WORK
The budget calls for $11.3 million to be spent on roads this year—compared to $14 million budgeted last year. Significant projects include $3.1 million for County Road 1 reconstruction from the limits of the roundabout to Mallory Road, $1.8 million for reconstruction of a kilometre of County Road 3, $310,000 for surface treatment of 2.2 kilometres of County Road 35, $3.6 million spent on rural roads rehabilitation.

There is also a proposal to spend $2.3 million for work on Bloomfield Main Street through the Connecting Link Program. The proposed rehabilitation project includes partial replacement of the concrete barrier curb and driveway depressions, partial sidewalk replacement as necessary, and removal and replacement of the existing asphalt pavement. The province provides funding for up to 90 per cent of eligible project costs. If the grant application receives approval, the municipality will be required to provide the remaining 10 per cent.

Staff are also proposing $1.3 million be spent on a culvert replacement on Fry Road—a project that Council rejected last year.

TRUCKS AND SUCH
The County’s fire department is looking to purchase a new $500,000 rescue equipment van for the Picton station.

Shire Hall is also looking to replace other vehicles this year, including a tandem dump truck with winter implements at $508,000, two new SUVs—one for the Recreation & Community Facilities Department and one for bylaw staff at $55,000 each—and $357,000 on a one-ton mechanic’s mobile unit and a two-ton truck with winter and patching attachments for the Operations department.

Shire Hall is looking to spend $1.7 million on vehicles in 2025.

WATCHING
Budget deliberations will be held in Shire Hall and start on Monday, December 2 at 6 p.m., for a budget overview presentation by Director of Finance Amanda Carter and any public deputations. Council will reconvene Tuesday, December 3, until Friday, December 6, starting each morning at 9 a.m. The public can attend in person or watch the meeting live on the County’s YouTube channel.