{"id":144625,"date":"2023-10-03T18:57:00","date_gmt":"2023-10-03T22:57:00","guid":{"rendered":"https:\/\/doppleronline.ca\/rwddev\/?p=144625"},"modified":"2023-10-03T20:05:40","modified_gmt":"2023-10-04T00:05:40","slug":"tough-2024-budget-discussions-ahead-for-huntsville-council","status":"publish","type":"post","link":"https:\/\/doppleronline.ca\/huntsville\/tough-2024-budget-discussions-ahead-for-huntsville-council\/","title":{"rendered":"Tough 2024 budget discussions ahead for Huntsville Council"},"content":{"rendered":"\n

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It’s going to be a tough budget year and councillors will need to hone in on spending priorities in 2024 as they deal with inflationary pressures and other factors.<\/p>\n\n\n\n

At their General Committee meeting held on September 27, councillors were given an overview of the budget parameters that lie ahead as the municipality prepares its 2024 budget, which will impact ratepayers in the municipality.<\/p>\n\n\n\n

Julia McKenzie, Director of Financial Services\/Treasurer for the Town, gave the committee an overview of what lies ahead. She provided the committee with the general range of the levy increase to be brought forward when the draft budget is presented to councillors.<\/p>\n\n\n\n

“Based on the budget policy the tax rate range can be 3.6 per cent to 7.2 per cent and that’s based on July 2023 CPI-trim,” MacKenzie told the committee, adding that the range would equate to a net levy increase of between 4.6 and 8.24 per cent, or an increase to the total levy (for both capital and operating expenses) of between $900,000 to $1.6 million.<\/p>\n\n\n\n

McKenzie said the Municipal Property Assessment Corporation (MPAC) was initially scheduled to release updated assessment data in 2020 which was expected to result in a significant increase in assessments. “Due to COVID-19 however this release was further delayed and is now not expected to be released until further notice by the Province of Ontario. As a result, the only assessment changes will be for new growth when we contemplate the budget which will be realized for 2024 and at this time we’re estimating it at $43 million and just to note that results in approximately $200,000 in net levy.”<\/p>\n\n\n\n

She said a capital increase of $615,000 was proposed in the municipality’s long-term capital funding plan to build funding for existing capital. “It should be no surprise that the cost to maintain our infrastructure has increased significantly. Construction projects across Ontario have seen very large increases and overruns over the past couple of years,” said McKenzie. “So the proposed increase for 2024 is expected to be higher than originally anticipated based on the updated capital costs and we will present this to committee in October for the inclusion of the draft budget.”<\/p>\n\n\n\n

McKenzie said there are several other factors that will impact the 2024 draft budget. “There were decisions made in 2023 that will come back in 2024,” she said including two full-time positions that were funded one-time from the Municipal Accommodation Tax. There was also COVID recovery funding that was absorbed as income in 2023 to reduce the levy, which will impact 2024 by almost $500,000. She said several other municipal positions were approved this year which amount to about $400,000.<\/p>\n\n\n\n

“In addition to the above, there are several other factors that create budget pressures, most significantly is the increased cost for services and products and contracts across all the divisions given the inflation that we’ve experienced in the past couple of years,” said McKenzie.<\/p>\n\n\n\n

It is anticipated that the 2024 budget will be passed by the end of January. “It is important to note that passing the budget in a timely manner really does allow for early tendering for significant contracts which hopefully will result in better pricing and availability of the contractors. This also allows staff to move forward with their 2024 operations and capital projects,” added McKenzie. “Just to note as I’m sure all the District councillors are aware, the District is planning on adopting their budget prior to the end of this year and other municipalities in Muskoka are also aiming for earlier budget adoption.” <\/p>\n\n\n\n

Discussions ahead in order<\/p>\n\n\n\n