A definitive answer on the city’s 2025 operating and capital budgets is still a week away, however at Monday’s council meeting some serious pencil sharpening was evident.
The process began with a proposed 4.93 per cent hike to the municipal tax levy next year.
However after more than two hours of deliberations, that hike has been whittled down to about a 3.8 per cent increase.
This was accomplished by dipping into reserves for an additional $650,000 to soften the hit on ratepayers next year.
Next year’s proposed levy is almost $74.5 million, up from just shy of $69 million this year, an 8.13 per cent increase.
Factor in the estimated additional growth-related tax of 3.2 per cent and ratepayers were looking at a 4.93 per cent hike.
City treasurer Dan Sheridan advised, “The 2025 operating budget has been a challenge, the high rate of inflation along with the need for additional resources due to growth and development have resulted in a proposed levy increase that is higher than in previous years.”
The proposed budget had required dipping into reserves to the tune of $1 million.
Sheridan added, “The use of reserve funds doesn’t erase the large increase but it allows the city to realize a modest tax increase in 2025 and offset the increases in 2026 where fewer pressures are expected.”
“If the actual growth amount differs from the estimate,” assured Sheridan, “the reserve contribution will be adjusted to hold the approved levy increase.”
Major factors impacting the operating budget are a hike of $2.3 million in wages and benefits due to contract increases and a $2.1 million bump in that same category as a result of new hires at city hall.
New borrowing costs add $610,000 to the proposed budget and the city has committed $400,000 to assist The INN with its operating budget next year.
In total, almost 24 full-time equivalent positions will be added to the payroll next year “to maintain the current level of service” in the city.
Sheridan will report back to council next Monday with the budget update.
