Staggering

Staff present 2022 Operating Budget with 2.6 per cent increase as starting point

Council will jump right back into numbers and percentages as budget discussions start this week. On Wednesday, the Horseshoe will be presented with the County’s 2022 Operating Budget documents. The tax levy is set to rise 2.6 per cent, an increase of $1,074,687 over last year. The total expenditures in the operating budget are set at $65.3 million, which is an almost 8 per cent increase over last year’s $60.5 million just to run the business.

To put the numbers into context, in 1998 the total operating tax levy paid for by County taxpayers was $10.3 million. In 2022, taxpayers will now fork over $42.6 million. Since amalgamation, the cost of running the municipality has been on a steep incline. As such, it becomes more unaffordable each year for the average resident.

At the end of December, after three days of deliberation, Council passed its capital budget of $18.5 million—an increase of 0.9 per cent over 2021. These funds are used for repairs, rehabilitation and reconstruction of things the County owns—assets including roads, bridges and buildings. Council also approved $56.1 million in spending for water and wastewater upgrades.

The operating budget will include investments made in programs and services that support the advancement of the corporate strategic objectives. Staff wages and benefits account for a significant percentage (38.9 per cent) of the operating budget. Other large portions of the budget are contracted services at $25 million (39.3 per cent), equipment, supplies and materials at $14.9 million (22.8 per cent) and another $14.9 million for services provided through external agencies and boards.

This year’s operating budget also reflects the municipality’s move away from destination marketing spending and focuses more on tourism management as a whole. The County will also try out a Municipal Financial Relief Grant after Council gave direction to investigate a water/wastewater bill relief program and funding source. The proposed pilot program would provide relief for vulnerable households across the County in urban and rural areas.

According to Director of Finance Amanda Carter, there are three reserve funds that require attention—the Capital Sustainability Reserve, Road Equipment and Fleet Reserve and the Information Technology Reserve. If not funded, the three reserves will have deficit balances by 2024.

There are also several additional options. These are items that aren’t currently included in the budget, but can be added at the wish of Council. These addition would ultimately increase the tax levy. Highlights are $440,000 for the Capital Sustainability Reserve, $150,000 to support physician recruitment, $200,000 to road construction reserve from higher than expected MAT revenue in 2021, $115,000 directed to affordable housing reserve from a carry forward from 2020 that was unspent, and $100,439 to hire a new staff position in the Planning Department to support economic development.

Budget deliberations began Wednesday, February 2, and can be viewed on the County’s YouTube Channel. The Times will have full budget coverage in next week’s edition.