GUELPH – Wellington County treasurer Ken DeHart is projecting a tax rate increase of two per cent in the current draft of the county’s 2022 budget.
DeHart presented a preliminary draft budget and 10-year plan at the Nov. 25 council meeting.
“We will be coming back in January, with a revised budget for adoption in the new year,” DeHart explained.
“We are projecting at this point a 2% tax increase as part of the budget.”
DeHart noted the budget projects total spending of $240 million in 2022, “of which our tax levy would be about $113 million.”
The increase would mean an additional $12 per 100,000 in assessment for county taxpayers next year.
DeHart pointed out about $2.1 million of the $2.3-million increase in spending over 2021 is focussed on capital expenditures, notably roads.
“This is by far and away the biggest investment we’re making as part of the 2022 budget,” said Dehart, who added staff were working to follow council directives from a pre-budget meeting in October.
“We heard council’s direction to both come in at around 2% and also to focus on core services.”
Looking ahead, the county’s 10-year forecast projects tax rate increases ranging from 3.1% to 3.8% over the next decade.
That’s a reduction from last year’s 10-year plan, which showed projected increases ranging from 3.5% to 4.2% over the same period.
The 10-year capital plan anticipates just under $500 million in spending over the term, about 70% of which flows through the roads budget.
“We are projecting about $70 million worth of new debt issues through the 10-year plan,” said DeHart, including about $65 million worth of tax-supported debt and another $6.5 million in growth-supported debt.
“None of the tax-supported debt is projected to be issued in 2022”
In addition to the ongoing investment in the county’s road and bridge network; key initiatives in the 10-year capital plan include:
- a new library branch in Erin;
- continued development of the county’s only active landfill site at Riverstown;
- the construction of new ambulance facilities throughout the county;
- a provision to construct three new affordable housing buildings and an ongoing investment in county-owned existing social and affordable housing units; and
- an administration centre expansion.
Preliminary budget documents indicate the administration centre expansion project slated for 2028 is projected to cost $28 million to expand office space for administration staff.
“Due to the magnitude of this project, funding with $27 million in debenture and $1 million contribution from the property reserve maintains the levy increase within an acceptable level,” the budget report explains.
The draft budget includes an “economic adjustment” of 1.9% for both union and non-union staff in 2022.
Staffing changes proposed in the 2022 budget, combined with in-year changes to staffing approved throughout 2021, are expected to generate a budget impact of around $380,000 in 2022.
Among the staffing changes are the addition of two climate change positions: an energy data and engagement assistant and a sustainability program assistant. Both are two-year contract positions.
“One is to be shared with economic development through the Smart Cities Program,” DeHart told council.
“And the portion of that position that is going through Smart Cities is covered by grants. The net cost of those two positions, we expect to be just over $70,000 in 2022.”
A household hazardous waste technician is proposed to move from part time to full time and the CEO and clerk’s division have identified two new positions: a communications officer and an information management analyst.
The addition of a communications officer is designed to meet needs brought on by new county initiatives such as Ride Well, Smart Cities, the Climate Change Action Plan, Children’s Early Years Division resiliency training and employee wellness ,and the expansion of existing county services such as green bin, attainable housing strategy, emergency management response and Taste Real initiatives.
“This position would increase the communications capacity to develop and implement marketing strategies, create content for design pieces, increase capacity and engagement across the county’s social media platforms and website, and assist with growing video, radio, and photography projects,” the budget report explains.
The budget notes provincial grants to the county through the Ontario Municipal Partnership Fund (OMPF) have been reduced by $163,400 in 2022.
DeHart anticipates OMPF grant funding will be phased out over a four-year period, representing a further reduction of $231,600 each year through to 2026 to bring the funding down to zero.
