Three days of budget talks are coming soon for Midland, and council faced a reminder on the uphill challenge they face to spend the town’s money wisely.
Throughout his term of council, Coun. Bill Meridis has been a watchdog hounding members of town staff during council meetings for in-depth numbers on the town’s spending recommendations.
At the recent meeting, a financial report for the 2023 budget up to the end of October was provided as the most updated account for the town’s numbers heading into the 2024 budget deliberations set for January 30, 31, and February 1.
Faced with a prospective 5.69 per cent municipal tax increase and 4.78 per cent blended tax rate increase for ratepayers, Meridis once again asked CFO Lindsay Barron to justify some budget numbers in an attempt to reduce those figures even lower.
“There were a lot of transactions from our 2023 budget that were approved that got cancelled,” Meridis began. “I went through them all and added up the cancelled projects; there were some cancelled, some put on hold. It was a little bit confusing.”
He asked Barron to explain for himself and members of the public if those unused amounts could be shifted to offset the 2024 budget, but Barron explained that it wasn’t the same; projects from the capital list were examined by staff and decided to be halted.
“Now I want to use those terms loosely,” said Barron, “because they’re not quite cancelled or closed yet (as per October 31, 2023), so these are estimates at this point in time.”
She added, “when we’re cancelling or closing a project, we’re essentially saying that those funds are no longer committed.” To answer Meridis’ question, those funds could be used for the capital budget in future years, which she estimated was $2 million.
“The one-to-three surplus (recommendation) that the report speaks to; that’s the operating surplus. That’s completely separate from the discussion we just had. That’s your estimated revenues from the budget based on actual – revenues, expenses – the difference between is our operating surplus.” Barron emphasized that the cancelled and closed projects “does free up money for future spend, but it doesn’t become part of the current year surplus.”
As Meridis pried further, Barron stated: “I’d love to say that yes it would help. But unfortunately, our reserves are so underfunded that removing $2 million in projects doesn’t make a difference.
“We’re putting two per cent – the $565,000 – in this year for reserves. The long-term 10-year plan that’s included in the budget includes not only that two per cent each year for the next ten years, but also that one per cent and in some cases… really it’s more than one per cent. The final recommendations actually say 1.5 per cent.”
Barron cited examples of municipal vehicles and equipment, and summed up by saying: “It’s that underfunded that removing $2 million from a plan that’s recommending over $100 million over the 10 years isn’t enough. We need to put the three per cent in, and more, to catch up.”
Meridis provided his own summary, explaining: “Eventually, if we don’t pay for it now we’re going to pay for it in the future; possibly like what Tiny is in, that they didn’t put enough away in their reserves and now their taxes are going up."
The meeting took a brief recess as personal business was addressed, and upon resuming council voted to receive the report as information.
At the start of the evening, a request was made for audience members to approach and ask budget questions; only Midland resident Mike Nugent took to the podium to deliver his thoughts and input on the 2024 budget.
Nugent said everyone needs to pull their weight.
"I don't want to see a $750,000 splash pad in Little Lake. Stuff like this has got to quit. Am I putting you to sleep, Mr. Downer?" Nugent asked Coun. Jim Downer.
"No you aren't, sir," Downer quickly replied.
"You're a good lad," Nugent retorted before continuing on with other concerns.
Once Nugent had concluded, no other attendee spoke up. Mayor Bill Gordon expressed light disappointment.
“I’m glad we have one person in town, out of 18,000 residents, that wanted to come and give us input; you probably gave us the input of about 15 or 20 people,” said Gordon to Nugent.
Gordon reminded the public that the current figures in the upcoming budget were only placeholders as “the draft is not set in stone”, and that public input would be taken into account when the three days of deliberation happen.
“It comes as a draft, and then it’s up to us to not only take public’s input that we get… to try and make the budget more affordable given the great deal of pressure this municipality is under in our costs, but also in our residents’ ability to pay,” Gordon noted.
Through the remainder of the council meeting over the evening, Gordon repeatedly addressed public ways to send “comments, questions, support, or critiques” on the budget to the town by phone or email, with further information available on the 2024 budget page of the town’s website.
“All those questions will be collected; you will receive a response,” he stressed.
The financial report to October 31 of last year 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.
