2022 Budget Update 1 – Town of Wasaga Beach

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On Thursday, October 7, Wasaga Beach City Council members began work on the 2022 operating and capital budget projects.

The meeting started with Jocelyn Lee, treasurer of the city, who presented a report on draft 1 of the budget. Council, sitting in Committee of the Whole, received the report for information.

Watch the presentation.

Department heads worked throughout September reviewing their individual budgets with the CEO and treasury staff to prepare the first draft.

“The first draft of the 2022 draft budget provides a preliminary overview of the budget. The report describes the budgetary pressures for 2022 and the efforts to address them, ”said Lee.

One of the significant challenges facing all municipalities in Ontario is the freezing of premium rates at base 2020 levels. The province has delayed the implementation of new rates due to the pandemic. Raising tax rates would translate into additional budget support, which the city has historically relied on to limit tax rate increases. As a result, staff worked to find savings and prioritized spending for the coming year using other sources of funding such as property taxes and growth revenues.

As it stands, the total operating budget in Draft 1 is $ 44 million, compared to $ 42 million in 2021. The operating budget covers current expenses necessary to provide services to residents. . These costs come back year after year and include items such as staff salaries, office supplies, repairs and maintenance, insurance and utilities.

The capital budget is $ 56 million, compared to $ 54 million in 2021. The capital budget supports long-term investments such as infrastructure and facilities. Road repairs, new sidewalks, investments in new buildings are all considered capital expenditures.

There are significant items of budget carry-over from 2021 to 2022, the largest related to the dual pad arena and library project – which involves a combination of funding, reserves and fundraising. Construction on the project began in September and will be completed in 2023.

The city has substantial funds in its reserve accounts, established over the years to support infrastructure investments. Now, the Municipality is drawing on these reserves to help fund a variety of projects that will help maintain and improve the overall quality of life in Wasaga Beach.

Total reserves and deferred revenues (development costs, government grants) stand at approximately $ 66 million at the end of June 2021. The proposed budget proposes to draw $ 14 million from reserves in 2022 to support infrastructure projects, while contributing nearly $ 4 million in funds, for a net decrease of $ 10.1 million. For deferred revenues, the draft budget proposes a withdrawal of $ 14.9 million with contributions of $ 8 million, for a net decrease of $ 7 million.

The budget proposal proposes to increase municipal debt to $ 32 million by the end of 2022, an increase of $ 20 million from the end of 2021. This is largely due to the new project. double-skate arena and library, the balance being tied to waterfront bond debt, streetlights and a new fire truck.

At this early stage in the budget process, the proposed increase in the tax rate is 2.15%. For a home valued at $ 450,000, this translates to an increase of $ 56 from 2021.

There are six new positions offered by department heads, comprising full-time, seasonal and part-time positions. These positions aim to meet the service delivery needs in various departments. Two of these items relate to water and sewer work and therefore do not affect taxation, as these roles are covered by fees. The remaining claims have a tax impact of $ 424,000 or a tax rate change of 1.57%. Staffing requests are not part of the first draft budget – board will review them in the second draft.

Draft budget 2 will also take into account the conservation authority fee as well as the costs of policing for the coming year. The rates and fees proposed for the coming year will also be taken into consideration.

Here are the key dates for the coming weeks regarding the budget process:

21st of October – Board and management team review department budgets

November 10 – Draft 2 of the budget, plus public meeting on the tariffs and tariffs proposed for 2022

December 2 – Budget project 3, plus final forecast

December 14th – Public meeting on the budget

December 21 – The Council examines the approval of the budget.

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