ERIN – After much discussion and several disagreements between town staff and councillors, the Town of Erin’s 2025 budget has been passed.
The Nov. 28 meeting began with a budget with a 2.9 per cent tax rate increase, but that got knocked down to 2.4%.
That was made possible by taking $437,517 from the town’s tax stabilization reserve, equaling an additional $30 on property tax bills for an average home assessed at $600,000.
“To say that we got [to] 2.9% … easily would be to mislead you,” stated town chief administrative officer (CAO) Rob Adams.
“We were in the double digits as a staff on this budget.”
Throughout the presentation, department heads told council how they plan to use a total of $17 million in expenses next year.
Big-ticket capital projects in 2025 will include:
- an aerial ladder truck expected to cost $2.5 million;
- road grader, $650,000;
- digital transformation, $500,000; and
- road restoration program, $400,000.
“I think these are very ambitious plans; I’m a little uncomfortable they may be too ambitious,” said councillor Cathy Aylard.
“We’re committed to delivering these things so I’m a little bit uncomfortable with the amount of new requests for the budget.”
Aylard wanted staff to sift through the budget once more and include only essential projects.
“Can we be a little bit less ambitious and give our taxpayers a break?” she asked.
With the little time before the next meeting, Adams stated that would be “impossible” to accomplish.
Lower tax rate increase
Councillor John Brennan originally wanted to take an additional $101,239 from the tax stabilization reserve fund – in addition to the $377,517 already taken from the fund – to lower the tax rate increase to 1.9%.
“This year I think is going to be a particularly tough year for our people,” he said.
“I think that would be of great benefit to our residents this year … that’s what we put the money in the reserve fund for in the first place.”
Town treasurer Wendy Parr stated she felt uncomfortable with that number, noting “1.9% really doesn’t leave much for our own infrastructure.”
Councillor Bridget Ryan agreed with Brennan but wanted the funds to go towards “greening” initiatives.
“We have people who are having [to decide] whether to pay heating bills or (put) food on the table,” replied Mayor Michael Dehn.
“I support greening in principle but not in this economic market.”
Brennan furthered his point by stating the demand on Erin’s food bank has never been greater.
“I’m just almost alarmed by our treasurer saying our cash flow may be impeded if we dip to that point,” said councillor Jamie Cheyne.
He suggested settling on the halfway point between 1.9 and 2.9%, to make both sides happy.
Adams replied, “Our approach was not to bring a budget to council that they could ask us to kick a few things out …
“Our approach was not to play games with the budget but to be upfront and honest on what needs to happen.”
He recommended staff to keep the levy and budget as it was originally presented.
“If you really want to do it, then I would only do half a point,” said Adams.
Brennan put forward an amendment to lower the tax rate increase to 2.4% with funds from the tax stabilization reserve fund.
The amendment passed in a 3-2 vote, with Dehn, Brennan and Cheyne in favour, and Aylard and Ryan opposed.
After the amendment passed, council voted 4-1 to approve the budget, with Aylard opposed.
