Fifteen hours, six meetings, and a handful of divisive decisions later, the town has approved its annual operating budget to the tune of $43.8 million, with a 8.39 property tax hike for the average resident.
The budget passed in a 6-3 vote at the end of Tuesday evening, April 4. Council began a special meeting Tuesday afternoon, during which it voted to cut another $100,000 in planned expenses.
After taking a recess to complete the committee of the whole planning meeting, councillors returned to the budget for a final discussion, during which they explained why they would end up voting either for or against the budget.
“I’m still very concerned,” said Coun. Wendy Cheropita at the end of the night. “There are residents in our own community that are struggling to pay their costs, be it families, be it seniors on pensions. I just think this is not the year to be putting in a big increase.”
Cheropita, along with Couns. Gary Burroughs and Sandra O’Connor, voted against the final motion to approve the budget, which includes a total levy of $14.9 million.
This means a property tax bill of $1,222 for an average single detached household assessment of $541,000, or $102.62 more than last year. For households in urban areas, there’s also a storm levy hike of $9.36 more, for a total of just about $112 more in this year’s tax bill.
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.
As O’Connor has reiterated throughout the budget process, the total tax hike for residents would have come in at more than 15 per cent, thanks to the region’s new tax levy of more than per cent for the amalgamated transit system. The town is offsetting this hike with a $1 million transfer from parking reserves.
“I, in all good conscience, cannot vote for that kind of increase,” she said, adding that the budget doesn’t include anything to support the town’s new Climate Change Adaptation Plan, approved last spring.
Council voted to defer the hiring of a climate change coordinator in this year’s budget, saving $54,140, along with a mechanic, for another $58,981. Of the 13 new full-time employees included in the draft operating budget, only these two did not make it to the final budget.
“The budget reflects the priorities of council, and the environment, in my opinion, is a very important priority,” O’Connor said.
Prior to the meeting’s recess, Cheropita moved three successful motions to not add six new full-time municipal employees, by keeping five positions as contracts and choosing not to hire a digital records coordinator, dispersing responsibilities among municipal staff this year.
“I feel like this is the time to be fiscally responsible and to focus on strategic investment and basic services that impact the quality of life most for the residents,” Cheropita said.
The positions which will remain contracts are the communications coordinator, utility locator, parks and recreation labourer, community centre labourer, and a heavy equipment machine operator.
As for the other six members of council who were in favour of approving the final budget, they voiced their support for what they said is a budget that will support residents’ needs in Niagara-on-the-Lake.
Coun. Erwin Wiens pointed out that the previous term of council decreased spending, committed to supporting the new regional transit system, and decided on a marginal tax hike last year of two per cent – and the cost of these decisions is what the current council is inheriting.
“Service comes at a cost,” he said. “We want to be a world-class centre … but we don’t want to pay for it.
“We’ve made investments broadly across the various areas of the community, the needs of the community, the departments in the town,” said Coun. Nick Ruller. “I think it’s a solid investment in meeting the needs of the public. … That’s really our objective.”
The capital budget was passed in a separate motion on March 28 at $9.96 million.