Back to SearchMembers of council received Draft 2 of the 2021 municipal budget on Thursday night.
In preparing Draft 2, staff made payroll adjustments, added one new permanent facilities staff and two seasonal municipal law enforcement positions, deferred some projects, and revised budget estimates to build a more detailed financial picture for council’s consideration. See the operating changes and see the capital changes.
The budget continues to include significant investments in a number of areas, including facilities, roads and bridges, water and waste water infrastructure, transit, physician recruitment, the fire department, playground structures, and planning studies that support community development. See Budget Update 1 and Budget Update 2 for details.
For Draft 2, the operating budget sits at $42.4 million, with a $15,740 tax supported increase over Draft 1, and the capital budget is $52.0 million, with a $102,180 tax supported increase over Draft 1. The proposed tax rate increase is now 3.46 percent, a small decrease compared to Draft 1. For a home assessed at $330,000, this translates to $1,911.92 in the municipal portion of taxes for 2021, an extra $5.33 per month compared to 2020.
The town’s tax rate remains at the low end for its comparators. See the chart.
In her report, Jocelyn Lee, treasurer, noted the province has frozen the phase-in portion of the property tax assessment increases for 2021 due to the pandemic. She said the decision has an impact on the tax rate used to calculate property taxes. This year, municipalities in Ontario, including Wasaga Beach, will not have the benefit of the assessment increase, which can help lower increases in the average household taxes when the town budget increases.
Lee said had the 2021 phased-in assessment been received, the current Draft 2 tax rate increase of 3.46 percent would have been reflected as 0.84 percent, as the additional assessment would have supported most of the increasing costs. This would have reduced the municipal portion of the tax dollar increase from $63.92 per year to $15.50 per year for the average household assessed at $330,000. See her report to learn more.
She noted the Ontario Municipal Partnership Fund Grant continues to decline as the province is phasing it out. This grant is decreasing by 15 percent for 2021. The town will receive $1.5-million, a revenue loss of $270,900, equivalent to a little more than a 1 percent tax rate increase.
The treasurer also discussed the financial implications of the twin-pad arena and library.
She noted the 2021 budget includes $6.6-million for the new library and $16.9-milion for the new arena. See the related chart, which summarizes the project cost by funding year.
Lee noted the financing portion of the project is a 30-year debenture loan at an interest rate of 2.59 percent, starting April 2023. The annual debenture payment of $1.5-million is funded by taxation. It is estimated that the new debenture cost in 2024 will add $99 to the taxes, and the new operating costs will add $71 to the taxes offset by decreases in taxes from other reductions ($30) and assessment growth ($77) for a net tax rate increase of $63.
Lee also reviewed the proposed rates and fees for 2021. To ensure that water and waste water rates are meeting provincial requirements, which stipulate rates must cover the cost of operating the system and provide for reserves for future asset replacement requirements, a 1.5 percent base rate increase and a 1.5 percent consumption rate increase were recommended. The new water and waste water rates would result in an increase for the average residential home of $7.13 per year. This presentation looks at the proposed new rates in detail. See this list to learn about other changing rates and fees. Council approved the rate increases, subject to final approval in December.
At the next meeting, on Dec. 3, staff will present the third draft of the budget and the 4-year operating and 10-year capital forecasts.
The following are the key dates in the coming weeks regarding the budget:
Dec. 3 – Draft 3 of the budget
Dec. 15 – Public meeting on the budget
Dec. 22 – Council considers approval of the budget.
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