Budget approval postponed as council debate continues

The clock ran out during what was supposed to be councillors’ last meeting on the 2023 budget: with a hard stop at 6 p.m., at which time Tuesday’s council meeting was to start, the operating budget failed to pass.

Last-ditch efforts by councillors, first Sandra O’Connor, then Wendy Cheropita, to reduce the planned tax hike of 8.85 per cent, or approximately $108.22 for the average residents, failed.

Council was able to approve plans to spend $9.96 million on capital projects during its special meeting on Tuesday, March 28, but when faced with its plans to spend $43.9 million on operations, the three-hour meeting ended with no time left to put that budget to an approval vote.

Senior staff have reiterated throughout budget proceedings that the town is facing financial pressures this year as a result of inflation, rising insurance rates, increasing wages to keep up with rising cost of living adjustments, and an increase in pensions under the Ontario Municipal Employee Retirement System (OMERS).

“2023 is largely seen as an investment year that’s seeing significant investments in operating and capital,” said finance director Kyle Freeborn.

The largest portion of 2023 operating expenses will be spent on salaries, benefits and other personnel costs, at nearly 36 per cent of the budget. Thirty-six per cent of its revenues will come from the tax levy, at $15 million, and user fees and penalties at 39 per cent.

For residents in urban areas, the tax boost will include an additional $9.36 increase to the storm levy.

O’Connor’s defeated motion asked for town staff to go back to the drawing board and develop options for a nine per cent tax hike for the budget, or two per cent not including the seven per cent transit levy.

Cheropita’s motion, defeated 3-6 in a non-recorded vote, asked staff to reduce the tax hike down to six per cent.

However, for some councillors, the time to request these sorts of changes had well-passed.

“We went through six meetings,” said Coun. Erwin Wiens. “It’s not fair to go back to our staff and say, ‘I want to look good politically, essentially, by you reducing it.’ Come up with the numbers that you want to reduce it by.”

Coun. Nick Ruller argued it is council’s responsibility to support a budget that delivers municipal services to residents, visitors, and the business community.

“We know this is not the most strategic budget … but that’s OK, because staff understand what the challenges are,” Ruller said. “They’re trying to deliver on the expectations that council’s bringing forward, and they’ve brought their best proposals forward.”

Originally, the town was going to keep its budget contribution to the Niagara-on-the-Lake Public Library status quo for 2023, rather than granting the library board’s increase of approximately $53,189.

However, after hearing a delegation on Tuesday from library board member Wayne Scott asking the town to reconsider, council voted in favour of increasing the library budget by $36,468 for its staff salaries and OMERS, raising the originally-planned tax increase of 8.58 per cent to 8.85 per cent.

Other financial pressures this year include provincial legislative changes, many under the recently-passed Bill 23 and Bill 109, including a reduction in development charge fees, plus regulations related to storm pond management, impacting the municipal storm levy (set at approximately $952,000 this year).

Freeborn has been asked during recent budget meetings to explain transit costs, and how they relate to this budget. Transit has now been taken over by the region, and will be funded through a regional levy for that purpose.

Freeborn said the town is offsetting what would have been an additional 7.3 per cent increase to the tax levy (from the regional levy) without this saving, by transferring $1 million from parking reserves.

This new budget includes hiring 13 full-time employees and converting five contracts to full-time positions. Council spent much of its proceedings in March debating which positions to keep in the budget and which to push to 2024, but ended up keeping most of those prioritized in the budget.

As of Tuesday evening, the date for the final meeting on the operating budget had yet to be determined.

As for the capital budget, the municipality’s big-ticket projects for 2023 will be reconstruction on Line 3 Road (the second phase of a project extending from Four Mile Creek Road to Concession 6) at $2.4 million; replacing the water main on Line 5 at $1.25 million; and replacing a culvert bridge on Simcoe Street, at $538,000.

There are also plans for enhancing the streetscapes of both Niagara Stone Road and Glendale Avenue at York Road, at $860,000 and $400,000 respectively.

Some projects were added to the capital budget during deliberations, including $250,000 to install a diesel exhaust removal system at one of its fire halls, $150,000 to reinstate a sidewalk on Andres Street, and $15,000 for a replacement diving board at Memorial Park’s swimming pool.

The town is also increasing its contribution to the capital reserve this year by $300,000, for a $2.42 million transfer total. According to Freeborn, $350,000 will be left in the capital reserve after the town pays for its capital projects this year. This balance will fund any new project requests that arise or unexpected and emergency capital needs.