Grey Highlands’ council has spent more than 30 hours debating the 2021 draft budget and will continue discussions next week.
“This is my seventh budget. It's been the longest and most arduous budget process that I've been involved in. Council has heard public concerns and painstakingly deliberated over this for 30 plus hours,” said Grey Highlands councillor Cathy Little.
The initial draft budget was presented to council on Nov. 4 with a series of deliberations held on Dec. 1, 7, 8, 15, 16, 18, Jan. 8, 19 and Feb. 1.
Following several meetings, the proposed levy increase was reduced from 14.8 per cent to an estimated increase of 2.92 per cent on the local tax rate.
The draft budget includes an operating budget of $196,135; a capital budget of $293,865; and a total levy impact of $490,000 or 4.17 per cent, which will see an estimated increase of 2.92 per cent on local tax rate.
“It's my opinion that we have before us today a reasonable and responsible budget by any measure,” said Little.
Prior to discussions beginning on Feb. 1, Little pleaded with her fellow council members to not put as much focus on the percentage of the levy increase.
“The total local tax increase on that $300,000 property in 2020 was $149,” Little said. “For the same property assessed at $300,000, the increase from the municipal levy is $75, and the increase from assessment is $0, for a total local property tax increase of $75. So, not only is the 2021 increase half as much as it was in 2020, it's the lowest that I have seen for the last five years.”
Despite Little’s argument, other members of Grey Highlands council want to trim the budget further to reduce the impact on residents.
“I'm not supporting a four per cent budget, so I'm looking at ways of reducing this,” said Paul McQueen, Mayor of Grey Highlands.
“People are suffering out there financially and are having to cut back to make ends meet,” said councillor Paul Allen. “Why shouldn't the municipality consider cutting back and suffering a little bit, just like everybody else is? It just seems that we want to carry on as if everything's normal and normal went out a year ago.”
Discussion at the Feb. 1 special meeting of council focused primarily on the capital budget items. Resulting changes to capital budget items include:
- Removing the museum garden and pavilion project and adding it for consideration in the 2022 budget
- The Station 2 Roof expenses were reduced from $40,000 to $10,000 for repairs only and not replacement, which would be funded from the levy only if not approved through the grant funding application process
- The Rural Reconstruction - Pretty River Road and Reid’s Hill Intersection Improvement project is removed to be considered in the 2022 budget or earlier if grant funding can be obtained
- Purchasing fuel tanks for local depots was changed to an allocation to reserves split over three years for purchase in 2023
Removal of items from the capital project’s list did not sit well with all members of council, who said by not funding these projects this year, it will only increase the budget pressure in 2022.
“Again, I would just like us to realize that we are looking at about two-and-a-half to three per cent of an increase to the levy next year because of decisions we're making this year,” said Grey Highlands Deputy Mayor, Aakash Desai.
“Our job as councillors is to make sure that we're leaving a better municipality for future generations that we're balancing the needs of today with the needs of the future,” Desai continued. “And we haven't balanced the needs of the future. We have consistently, consistently taken away from the future so that we can live in comfort today. And quite frankly, it is getting frustrating.”
Grey Highlands CAO Karen Govan added that removing or deferring capital projects may be a risk to the municipality's capital projects program.
“I just caution council about reducing the percentage of the tax levy increase by compromising a capital budget project,” Govan said. “We know that we're not putting enough into our capital projects program as it is. In the past few years, we've made reductions to our capital program. And, when we talk about asset management, it just seems that we're taking a step backwards by making reductions.”
Little agreed and suggested the municipality has other options to help those who may be struggling financially due to the pandemic besides putting off important projects, such as waiving the penalties for late payments.
“It's time to make a decision. I feel for people that are hurting but we do have other means to help people that are being disadvantaged, if they are being disadvantaged, by not the percentage increase but the dollar increase, to their taxes,” she said.
Council will be reconvening on Feb. 12 for continued budget discussions.
On the agenda, council members will be weighing in on the community gardens development project, downtown hamlet revitalization, and the debenture amount of $155,000 for the compact track loader with bucket and brusher/mulcher.
For more information and to view the 2021 draft budget in its entirety, visit: https://www.greyhighlands.ca/en/municipal-government/budget.aspx\
