Stephen Vance, Staff
Meaford Council was presented with the draft budgets for 2021 at its October 19 meeting at Meaford Hall. The draft operating budget calls for an 8.7 percent increase to property tax rates in 2021 along with 8 percent increases to both water and sewer.
“Given the uncontrollable fixed costs and added annual debt repayments, the ability to control costs at or near inflation cannot be achieved without Council direction to change existing service levels,” CAO Rob Armstrong told Council during his presentation.
Among the top pressures on the 2021 budget are an increase to the municipal waste management contract of $365,000, an estimated increase to the policing contract of roughly $20,925, an increase of more than $60,000 to municipal insurance policy premiums, as well as salary and staff grid level progressions amounting to nearly $80,000, and increases to CPP, EI, WSIB, EHT, and OMERS of $31,350.
The impact of these items alone on the 2021 municipal budget is $564,150. With the annual increases to infrastructure funding of one percent for roads, one percent for bridges, and half a percent for municipal facilities, the proposed 8.7 percent increase would cost the average residential property owner an extra $188 in 2021, or $15.70 per month.
“Single Family Dwellings makes up about 50 percent of all properties within the municipality. These 3,100 properties have an average assessment of $271,610,” staff told Council during the presentation. “An 8.7 percent budget increase would impact the ‘normal’ residential property owner by increasing the municipal share of the tax bill by +/- $188 annually or about $15.70 per month.”
While there are no enhancements included in the 2021 draft budgets, the municipality is maintaining its commitment to infrastructure, with $2 million budgeted for bridges and another $1.4 million dedicated to roads infrastructure.
Members of Council hoping to find ways to lower the required rate increase in 2021 will have two full days in November to discuss and debate all elements of the draft budgets.
On November 9, Council will review the operating budgets for each municipal department, and the following day, November 10, Council will discuss the capital budgets.
Members of Council were not thrilled with the rate increase required in the draft budgets, but they were also not surprised given the circumstances.
“Certainly understood, we knew this was coming, due to increased and uncontrollable costs, waste management particularly was a significant increase,” said Mayor Barb Clumpus. “The costs that are uncontrollable are contributing so much to the increase that we are looking at now.”
Councillor Harley Greenfield suggested that service levels be examined.
“To me the only answer here is that we have created a bit of a monster when it comes to our service levels and, I think the only way we are going to combat this 8.7 percent is to make changes in our service levels,” Greenfield suggested.
Treasurer Darcy Chapman agreed.
“I think this is an extremely tough year from a budget perspective. If you look at the operating budget, we’re projecting about $760,000 in increases operationally,” Chapman told Council. “From staff’s perspective, wherever we can trim, wherever we can increase revenues even slightly, that’s been done. But you are absolutely right, that we have been saying from this side of the table for years that we may be living beyond our means.”
A public engagement session will be held at Meaford Hall on Wednesday, October 28 at 6:30 p.m., and Council will have two full-day sessions to discuss the draft budgets on November 9 and 10.
A statutory public meeting will be held on Monday, December 14, with Council expected to give final approval to the 2021 budgets at their January 11, 2021 meeting.
Municipal budget documents can be found at www.meaford.ca/budget2021.
All questions about the budget from Council and the public can be sent to budgets@Meaford.ca.
