Midland had its first look at the 2024 draft budget this week, and big costs are looming on the horizon.
In anticipation of the January budget talks, council received an easy-to-digest slideshow and explanation from CFO Lindsay Barron, with the intention to have the same budget information on the town website soon after.
As presented, if the town were to meet all requirements and requests without any cuts or alterations to the draft budget, then the tax rate impact would see a 5.69 per cent municipal tax rate increase, with townsfolk seeing a 4.78 per cent increase to their taxes through an assumed blended rate on their bills.
“This is based on our current assessment assumptions for the county and the school,” said Barron. “This all-in rate equates to $6.33 per month, or, $75.92 per year of an increase per $100,000 of property assessment.”
However, there will be adjustments.
Notable revenue increases looked to new assessment growth of 2.58 per cent (at $700,000), general fund income of $244,000, and the parking levy which was slated as $408,000 but dynamically changed later in the same meeting as council dealt with the parking issue separately.
Decreases to revenue involved operational subsidies at a $250,000 decline, just $17,400 of Ontario Municipal Partnership Funding, and the loss of user-based contribution by Tiny Township to the North Simcoe Sports and Recreation Centre at $23,500.
Town expenses are also hefty, through reserve contributions for asset replacement at $565,000, reserve-funded one-time expenses of $357,000, debt management at $286,500, and the reinstatement of $63,000 to the budget for Economic Development Corporation of North Simcoe.
“The cost to maintain new service levels – which include changes related to existing contracts and services, market demand and inflationary pressures, as well as community initiatives – have also increased,” Barron explained. “The impact of these costs (at roughly $500,000) to the tax rate have been largely mitigated this year through (a new costing approach through) interdepartmental transfers to our water and wastewater operations.”
The preliminary rates shown were a five per cent increase to water rates and 4 per cent increase to wastewater over 2023, for a $0.45 water and $0.40 wastewater additional impact to ratepayers.
Barron used the phrase “replace, renew, and rehabilitate” in describing town staff’s intent with the 10-year capital plan and its forecast, projecting $203 million would be needed for new capital and project related requests including water and wastewater through to 2033.
Mayor Bill Gordon noted the 10-year consolidated reserve forecast graph which showed a sharp and steady decline to a 2030 marking of -$20 million in total discretionary reserves, along with a 2027 dip in MPUC reserves, and gave his fellow council members some shared guidance from the previous administration.
“The cautionary tale we saw in the reserve graph – cratering, deeply,” began Gordon. “It’s really easy to prune the contributions to reserves if you’re looking for some quick wins to change your tax rate, but you can see what’s happened when successive councils have done that. You can see the damage it does to our capital plan.
“As much as we’ll look at: ‘this 1 per cent is $250,000 we’re putting into the reserve (but) we can put that back to the residents and save some for them this year’; the ripple effect that has happened over the years, we are now left… the chickens have come home to roost, as it were.”
Deputy CAO Andy Campbell noted that the anticipated 2024 Yonge St. reconstruction project had instead been shifted to 2025 with listed costs reflecting the adjustment.
Other comments in the meeting included Barron providing an explanation of the freezing of MPAC assessments for 2024 at 2016 rates affecting those owning waterfront properties moreso than average homeowners in the heart of town.
A question and answer period was announced by staff to take place between December 13 through January 19, with staff aiming to address comments and concerns weekly. A public meeting for the budget was announced for January 17, to take place at council chambers as part of the regular council meeting at 6 p.m.
Deliberations for the budget are scheduled for the three-day period starting January 30, wrapping up on February 1.
Detailed information, timelines and reports on the 2024 budget can be found on the budget and finance page of the Town of Midland’s website.
The 2024 draft budget staff report is available in full in the council agenda on the town of Midland website.
Council meetings are held every third Wednesday, and can be viewed on Rogers TV cable channel 53 when available, or through the livestream on the Rogers TV website. Archives of council meetings are available through Rogers TV and on the Town of Midland’s YouTube channel.
