City council Monday evening unanimously approved the draft 2024 capital and operating budget after shaving it down by half a percentage point.
However members did not undertake any pencil sharpening, instead they dipped into reserves up to a maximum of $350,000 to drop the property tax levy increase to 2.95 per cent.
The move required a specifically worded motion from city clerk Maria Konefal.
“That council establish the 2024 budget at a target percentage increase of 3.49 per cent as presented, noting that 0.54 per cent is to be recovered from reserves. So the actual impact on the property tax levy is 2.95 (per cent).”
Council had started budget deliberations looking at a 3.49 per cent levy increase.
It was Coun. Jeff Kohler who really pushed to lower the levy below the three per cent mark by accessing reserves.
The proposed levy for the coming year is a shade under $69 million, which is an increase of $4.2 million over this year.
When you factor in just over $2 million in additional growth-related tax, the levy increase drops to $2.2 million, which is a 3.49 per cent increase over this year.
Contractual increases in wages and benefits – $2.5 million – and wages and benefits for new positions next year – $1.4 million – are the biggest contributors to the tax levy increase.
In total for next year, the city is looking at adding 15.55 full-time equivalent positions, six of those with the police service.
On the capital side of the budget, proposed expenditures total $52.1 million. In total, 48 capital projects are recommended for approval by council.
Complete Streets roadworks projects top the list at $9.2 million, Kains Street reconstruction comes in at $5.7 million and the new animal shelter has been green-lighted at almost $3.7 million.
Six projects have not been recommended for approval including $200,000 for the replacement of a shelter at Pinafore Park.
The addition of a cricket pitch at Cowan Park – an estimated total cost of $175,000 – didn’t make the cut.
The requested grant funding to St. Thomas Elgin General Hospital – $2.5 million – and Hospice of Elgin – at $600,000 – are not included in the 2024 budget, to help offset the larger-than-normal levy increase projected, according to director of finance Dan Sheridan.
To hold the line, the city will defer granting funds to those capital campaigns until 2025.
Which prompted Mayor Joe Preston to observe, “How do we deal with donations to assets that are not ours? Some of this has to go to our strategic plan.”
As a cost-saving measure, Coun. Steve Peters asked about the possibility of removing the roundabout from the Kains Street reconstruction project.
City engineer Kevin Deleebeeck advised this would save about $250,000, however that saving would be lost due to delaying the project for design changes.
He added an updated report on the $5.7 million undertaking will be coming to council in the near future.
A budget bylaw will be presented to council for approval in January.
