Into the storm

2024 budget calls for a 12.7 per cent tax levy hike

Shire Hall is looking to raise the tax levy by 12.7 per cent next year. From $47.3 million last year, the tax levy is growing to a staggering $53.3 million next year, according to draft budget documents released last week. (The amount collected next year will be five times greater than the amount extracted in 1998—yet the population has barely budged.)

Shire Hall plans to spend $77.8 million next year to fund its operations, up $6.4 million over last year—an 8.9 per cent increase.

Wages and benefits account for a significant percentage (35.8 per cent) of the operating budget at $29.9 million in 2024, up 6.6 per cent from 2023.

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 2024 Shire Hall proposes to spend $19.6 million on General Government—a 59 per cent increase since 2019.

Contracted and professional services, equipment, supplies and materials account for 38.4 per cent ($29.9 million) of the budget, up $3.5 million from last year, while external agencies and boards will make up 21.7 per cent ($16.9 million) of the budget. This year, 1.4 per cent ($1.1 million) will be put towards long-term debt, down $221,000 from 2023.

Meanwhile, Shire Hall’s capital projects list currently tips the scales at $120 million, a large chunk of which—$95 million—is earmarked for the redevelopment of McFarland home. Meanwhile, $14.8 million is tagged for roads, with another $3 million for bridges and studies. It is looking for $3.5 million for trucks.

The County’s waterworks utility is looking for $6.6 million to fund operations next year, up from $6.3 million in 2023. This is, however, less than half the $11.6 million it will extract from water consumers in their water bills next year. The remainder is being stashed away to fund big infrastructure plans.

Waterworks also wants to add $10.7 million to its list of nearly $100 million planned capital projects. Most of the new money is earmarked for underground pipe work in Picton.

LONG-TERM DEBT
The County’s long-term debt at the end of 2023 will be $65 million ($52 million for waterworks and $13.3 million for facilities, vehicles and quarries and such.) Funding this debt will cost $4.4 million next year.

But the budget warns of big increases in the years ahead—$87 million more debt in waterworks and $7.9 million more in non-waterworks debt.

It puts the total obligation at more than $160 million. Against a backdrop of high interest rates it amounts to significant exposure—particularly to wateworks consumer, who fund and are responsible for this utility.

NON-WATERWORKS CAPITAL WORKS
A new term of council approved $85.1 million in capital spending last year—funds that were earmarked for repairs, rehabilitation, and reconstruction of things the County owns—assets, including roads, bridges, and buildings.

This year, Shire Hall is looking to spend an eyewatering $120 million on capital projects. Of that money, nearly $95 million is an investment in a new 160-bed long-term care home in Picton, although senior leadership has said that without significant provincial funding, the project will not proceed.

ROAD WORK
The budget calls for $14.8 million to be spent on roads in the County this year—compared to $11.5 million budgeted last year. Significant projects include $7.8 million for phase three of the Picton Main Street reconstruction, $4.3 million spent on rural roads rehabilitation, $2 million on County Road 49 culvert replacements and $291,000 on Picton’s York Street reconstruction.

Staff are also proposing nearly $3 million for bridge rehabilitation, including $1.2 on a bridge on Quaker Road and $1.2 million to rehabilitate a culvert on Fry Road.

TRUCKS AND SUCH
The County’s fire department is looking for the go-ahead to purchase two new $650,000 pumper trucks—one for the Demorestville station and one for the Picton station. Both current tankers are 24 years old and are no longer classified as first line duty apparatus.

Shire Hall is also looking to replace other vehicles this year, including a tandem dump truck with winter implements at $504,000, a $677,000 road grader, a $465,000 loader, a $141,000 two-ton truck, and a new cargo van at $70,000.

In total, Shire Hall is looking to spend $3.5 million on vehicles in 2024.

And then there is a solar eclipse. The County’s Emergency Management Program Committee is looking for a spare $96,000 to prepare for the moon’s April 8, 2024 alignment in front of the sun. It anticipates large crowds converging on the County on this day, so the committee wants to “ensure there is enhanced level of safety and co-ordination of services on this day.” For portapotties and such. In case Carly Simon and Warren Beatty show up.

WATERWORKS CAPITAL PROJECTS
Budgeting for waterworks—operating and capital—is a separate business. Consumers entirely fund the waterworks utility through the water bill, and builders through development charges. None of the cost of the utility is the responsibility of the general property taxpayer.

Last year, council approved $25.1 million in capital spending for its waterworks utility—funded by users. This year’s waterworks capital budget forecasts $10.6 million in new spending on water and wastewater projects. The bulk of new capital spending is for underground networks during phase three of the Picton Main Street reconstruction and over $600,000 on Picton’s York Street and Disraeli Street projects.

WATCHING
Budget deliberations will be held in Shire Hall and start on Monday, December 4 at 7 p.m. for a budget overview presentation by Director of Finance Amanda Carter and any public deputations. Council will reconvene Tuesday, December 5, until Friday, December 8, starting each morning at 9 a.m. The public can attend in person or watch the meeting live on the County’s YouTube channel.