Collingwood council passed the 2022 budget back to staff for a re-do during a meeting today that was supposed to kick-off budget discussions.
Councillor Mariane McLeod called the draft budget a “swing and a miss,” as she moved to refer the whole thing back to town staff for more work.
She noted during the Nov. 5 strategic initiatives committee meeting that council, in September, asked for a draft budget proposing no more than a one per cent overall tax increase and the draft staff brought to council on Nov. 5 proposed a 2.79 per cent tax increase.
An updated draft published Nov. 4 did reference the difference between a one-per-cent and a 2.79 per cent tax increase and separated out discretionary spending and staffing requests. But Councillor Kathy Jeffery said it was done too late to digest the information and she wanted everyone coming to the meeting "on the same page."
Councillors Deb Doherty and Yvonne Hamlin were the lone voices of opposition, suggesting council could hear the staff presentations and have discussions from there. Both pointed out the budget was still in draft form and would not be approved during the first meeting.
“I want to keep an open mind, and I want to hear what staff have to say,” said Doherty. “If there are good ideas and good initiatives, then perhaps we should consider them.”
Hamlin said she didn’t want items taken out of the budget before knowing what they are.
“Every year staff comes with a bigger ask than what we resolve,” said Hamlin, noting council uses budget deliberations to add and remove budget items.
Mayor Brian Saunderson acknowledged the budget is only in draft form, his said concerns were procedural.
“Council provided direction … this is council’s role,” said Saunderson. “It’s very unfortunate this year it’s played out this way.”
CAO Sonya Skinner said she thought there was merit in having senior staff present their budget summaries during the Nov. 5 meeting, but council opted not to hear those presentations.
Mayor Saunderson, Deputy Mayor Keith Hull, and councillors Kathy Jeffery, Steve Berman, and Bob Madigan voted to refer the whole draft budget back to staff and have them make a new draft with a one per cent tax increase.
Councillors Doherty and Hamlin voted against the referral. Councillor Tina Comi was not at the meeting.
Proposed budget
The draft budget that was brought to council on Nov. 5 from staff did propose a 2.79-per-cent overall tax increase, and also compared the proposed increase to the one-per-cent increase requested by council.
The total town budget for 2022 is proposed at $116.1 million, which is up from the total $100.8 million approved for the 2021 budget.
Of the total $116M, a little over $63M is for the town’s operational budget, which is where most taxation is applied. The 2022 budget proposes collecting $37.1M in taxes.
In 2021, the town collected $35.2 million in taxes.
Every one per cent increase in the town’s taxation rates amounts to about $374,000 toward the total tax amounts collected.
For an average household (assessed at $327,000), a 2.79-per-cent increase amounts to about $64.12 added to the tax bill in 2022.
A one-per-cent increase would increase the same tax bill by about $23.03.
In order to bring the proposed 2.79-per-cent tax increase down to one per cent, about $668,000 in budget items needs to be cut from the draft 2022 budget.
Some of the budget pressures were highlighted in the draft staff intended to present at the Nov. 5 meeting. They include “unavoidable increases,” which, combined with reductions in expenses and increases in revenue amount to about $1.17M.
They include:
- Salaries and benefits increases (raises based on merit and salary grid): $456,240
- Salaries and benefits increases based on cost of living: $313,127
- Debt payments for the Minnesota storm sewer repair: $335,000
- Contribution to a business accelerator: $300,000 (this was set at $200,000 for 2021, which was meant to be repaid with the 2021 budget surplus, but staff estimate a surplus lower than that, so repayment of the 2021 amounts would be carried over to the 2022 budget).
- Asset management plan funding: $237,000
- The asset management plan and the corresponding fund is meant to be a safety net allowing the town to replace its assets as needed. Analysis showed this fund short by about $9 million in 2014, which lowered to a $1 million shortfall in 2017.
- Salary market analysis grid change: $150,000
- Increase in special capital levy: $100,000
- Vaccine passport checking (staff/security hired at town facilities): $75,000
- Insurance increase: $60,000
- Streetlight utilities indlationary increase: $60,000
- Transit contract increase: $53,000
- Integrity commissioner fees: $49,200
The increased revenues are coming from parks, recreation, and culture, (about $165,000) which saw a decrease in revenues throughout 2020 and some of 2021. Investment income is also up by about $100,000.
Decreased costs include $250,000 less for the OPP contract, taking $100,000 in judicial inquiry costs off the budget, and repayment of $150,000 in internal debt.
Staff also separated out nearly $600,000 in what they call “discretionary service enhancements.”
They include $150,000 set aside to pay for some of the recommendations from the town’s affordable housing task force. A report made on Nov. 1 by the task force delivered 53 recommendations that would take about $350,000 to implement, according to town staff.
Other discretionary amounts included $50,000 for the UN/UEF world summit co-hosted by the town and $40,000 for a speed reduction study. The speed study was included in the 2022 draft budget on the direction of council from a motion passed in June asking staff to include a consultant-led study into Collingwood’s speed limits and potential reductions.
The 2022 draft budget turned down by council on Nov. 5 also included $218,500 in staffing requests. They are:
- $80,000 for a communications position to work under the manager of public relations and communications
- $35,000 toward a development review engineer, with another 70 per cent of the full wage supported by engineering fees collected on projects
- $28,233 toward a full-time lifeguard and instructor position (this would be offset by the savings in part-time hours)
- $25,000 to extend the financial analyst contract position for two more years. The position is funded 80 per cent through grants.
- $20,300 for temporary election staff
- $18,000 for the crossing guard program update (minimum 1.5 hour pay per shift, and increase to on-call rate). This was requested by council in 2020.
- $12,000 toward a facilities operations coordinator. Not a new position but meant to upgrade an existing operator position.
