{"id":122615,"date":"2022-10-03T12:09:45","date_gmt":"2022-10-03T16:09:45","guid":{"rendered":"https:\/\/doppleronline.ca\/rwddev\/?p=122615"},"modified":"2022-10-03T12:09:48","modified_gmt":"2022-10-03T16:09:48","slug":"proposed-range-for-the-towns-2023-draft-budget-lands-between-a-5-4-and-7-per-cent-tax-hike","status":"publish","type":"post","link":"https:\/\/doppleronline.ca\/huntsville\/proposed-range-for-the-towns-2023-draft-budget-lands-between-a-5-4-and-7-per-cent-tax-hike\/","title":{"rendered":"Proposed range for the Town’s 2023 draft budget lands between a 5.4 and 7 per cent tax hike"},"content":{"rendered":"\n

<\/p>\n\n\n\n

At its general committee meeting held Sept. 28, council was asked to approve a 2023 budget guideline whereby staff would work at bringing in a 2023 draft budget equivalent to a tax increase anywhere from 5.4 to10.8 per cent over last year, which represents a levy increase over last year of anywhere between $1.2M and $2.2M.<\/p>\n\n\n

<\/broadstreet-zone><\/strong><\/div>\n\n\n\n

“It’s not necessarily the final tax rate increase but is really just providing staff with an acceptable range to work towards,” noted deputy treasurer Reva Frame.<\/p>\n\n\n\n

According to Frame’s report to general committee, the range of the increase was being recommended based on previously approved budget guidelines involving the Consumer Price Index-trim, released by Statistics Canada on August 16, 2022 at 5.4%, times two.<\/p>\n\n\n\n

“It is expected that 2022 will be a challenging year as staff develop budgets that account for the removal of COVID-19 Safe Restart funding, the change to OMERS for part-time and seasonal staff [they will be eligible to join the OMERS pension plan effective January 1, 2023] and the postponement of the MPAC assessment for yet another year,” noted Frame. She stated that there are a number of factors over which staff have no control that add to the pressure of maintaining existing service levels for a growing community. “Growth and external pressures may impact the overall net operating levy required to ensure that residents are able to utilize and enjoy existing programs and services that the Town currently offers. External factors may include, and are not limited to, the following:
\u2022 Consumer price index (CPI);
\u2022 Legislative payroll changes (including potential changes to CPP, EI, EHT, WSIB, OMERS &
statutory holidays);
\u2022 Utility rates (including hydro, water\/sewer, natural gas, etc.);
\u2022 Fuel prices (including regular gasoline & diesel);
\u2022 Construction price index; and
\u2022 Insurance premiums.”<\/p>\n\n\n\n

She also said the growth rate by which the overall tax levy is offset is being calculated at 1.5 per cent or about $67M in assessment, which remains the same as last year. MPAC is expected to release new numbers in 2023 which will not be applied until 2024.<\/p>\n\n\n\n

But the proposed draft budget range for possible increases over las year did not sit well with everyone.<\/p>\n\n\n\n

“10.8 per cent, that is absurd. I can’t get my head around that,” said Councillor Bob Stone. “You say that you’re looking for direction so that you can have an acceptable range to work towards, well… 10.8 is totally unbelievable. The public is not a money tree we can just pluck for what we want, so I would say 5.4 per cent might be the top end of what I could accept,” added Stone.<\/p>\n\n\n\n

“I would just point out that this is early draft stages so there will be lots of discussions we’ll carry on from here,” noted Councillor Tim Withey.<\/p>\n\n\n\n

Huntsville Mayor Karin Terziano said she understood that staff was essentially following previously approved council budget guidelines which has been essentially setting a budget between the CPI-trim and twice the CPI-trim. “Traditionally that number is slightly less than two per cent which would give you maybe two per cent to four per cent as a budget guideline. The CPI-trim is higher than I think anybody would’ve ever imagined so giving a guideline to set a budget between 5.5 per cent and 10.5 per cent or almost 11 percent, to me, is not something that I would… do to the next council that decided our budget so I can’t support this… I don’t think that’s a good starting point,” she said. <\/p>\n\n\n\n

Committee members had further questions about WSIB increases and increases to capital road works as well as the capital asset management reserves required for the maintenance and replacement of existing infrastructure, as per the Province. Committee heard that Huntsville has a shortage, like most municipalities, but continues to put funds into reserves.<\/p>\n\n\n\n

Stone asked for a motion to be put on the floor instructing staff to come back with a draft budget with an increase of between two and six per cent. Terziano seconded the motion. <\/p>\n\n\n\n

“Is two per cent actually realistic?” questioned Alcock who was not prepared to support that amendment. “I’m not saying that I’m not in favour of adjusting it but I’m also concerned that we might put a number in there that it just actually not feasible.”<\/p>\n\n\n\n

Reva told Alcock she could not disagree with her regarding the two per cent. “Strictly the price increases of just the materials and everything that we need in order to offer the services that we’re currently providing, that would be a very difficult goal to reach.”<\/p>\n\n\n\n

Director of financial services\/treasurer for the Town Julia McKenzie also weighed in. “If we want to continue on with developing our capital resources then that would be tight as well, and also we also don’t have the Safe Restart funding in 2023, so that’s already putting us in a tight spot because we’re losing $400,000 right off the top that we need to add back in on the levy.”<\/p>\n\n\n\n

Councillor Dan Armour asked whether staff could proceed without an actual number and come up with a budget that they think is needed and council can then come up with a number afterwards and go from there.<\/p>\n\n\n\n

McKenzie reminded committee that there is a policy in place. “It is helpful to have a number in there so we as staff know what range we’re looking at and move in that direction.”<\/p>\n\n\n\n

Frame told committee that ultimately it’s staff’s responsibility to create a budget in order to provide the services required for the community. “We are going to put our best foot forward, and ultimately we want to try and reduce costs where we can. We don’t want that number to be huge, we want that number to be as fiscally responsible as possible. You know, I’m a taxpayer. I don’t want the tax rate to go up, right, and most of our staff are, so we do look at it and try and reduce cost where we can and still provide the services…”<\/p>\n\n\n\n

Thompson said he would be voting against Stone’s amendment. Saying prices have increased and it’s not fair to ask staff to provide services that people want and then handcuff them with a limited increase. <\/p>\n\n\n\n

Discussions continued about what type of increases would be prudent. <\/p>\n\n\n\n

In the end, a majority of committee, with chair Withey breaking the tie, voted in favour of instructing staff to return with a draft budget increase equivalent to between a 5.4 and 7 per cent tax increase. <\/p>\n\n\n\n

You can find the staff report here<\/span><\/a> and the link to the September 28 general committee meeting stream here<\/span><\/a>.<\/p>\n\n\n

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