Central Huron Council's 2024 budget process continues

BY SHAWN LOUGHLIN

Central Huron Council continued its budget deliberation process last week, seeing more operating budgets in advance of the first consolidated budget presentation of the year.

 

Council met on Feb. 21 to discuss the budget, beginning with a presentation from General Manager Matt Lee of the Regional Equine and Agricultural Centre of Huron (REACH) and Michelynn Lafleche, a member of the board of directors, detailing the year that was for the centre and looking ahead to the needs and aspirations for it in the year still to come.

 

In 2023, there were 14,000 day visits to the centre across 81 weekly events. The pair also noted that 37 students attended the centre full-time, while 316 students enrolled in programs offered by REACH.

 

The pair estimated that the centre has injected over $1.3 million into the local economy (applying the Tourism Regional Economic Impact Model), nearly $900,000 through education and $270,000 in facility and program investments over the course of 2023. 

 

Lafleche then said it was time for the centre to focus on growing. Goals for the next two years include expanding the facility, resolving the lack of student housing, growing the use of the arena and outdoor facilities and increasing the value of REACH events and more. With those goals comes a higher grant request from Central Huron Council. 

 

She told council that there are nearly $525,000 in planned expenditures this year and $304,482 in expected revenue, resulting in a grant request of $218,933, which represents a nearly $35,000 increase over last year’s request, about $16,000 of which is for a new grooming machine, which Lee described as the centre’s Zamboni.

 

For 2024, the REACH board anticipates an economic impact on the community of about $2.5 million.

 

From there, Treasurer Jeff Boyes began breaking down the departmental operating budgets, beginning with planning, which calls for a 25.92 per cent increase this year. 

 

While the increase may look large, Boyes said, the ongoing paving study work has been moved into that budget from elsewhere, which accounts for much of the increase.

 

The department’s budget also includes a wage and benefit increase of 13.49 for unionized staff, plus one per cent and step movement for non-unionized staff.

 

In the drainage budget, a 1.58 per cent increase is planned, though Boyes warned council that there may be legal costs associated with potential litigation, so the budget was subject to change.

 

At this point in the meeting, Chief Administrative Officer Steve Doherty spoke about the ongoing efforts by local municipalities, Huron County and the Association of Municipalities of Ontario (AMO) to have a frank and honest discussion with the provincial government. Doherty said that municipalities are buckling under the weight of costs associated with more and more assets being downloaded from the province and it’s unsustainable, citing drainage as a major factor.

 

As a result, council directed staff to seek a delegation at the AMO conference this summer to further discuss the issue with someone from the provincial government in the hopes of finding a sustainable and affordable path forward.

 

The next budget up for discussion was the economic development operating budget, which calls for an increase in expenses of nearly 57 per cent. Again, however, the budget has been subject to transfers, which are a large reason for the increase. The big transfers are associated with the former Bluewater Youth Centre, including interest for the construction loan ($237,835), Environmental Compliance Approval (ECA) application ($100,000) and a species-at-risk study ($55,000), as well as the REACH budget, which includes the aforementioned increase.

 

Community Improvement Co-ordinator Angela Smith was on hand to present her department’s budget, which includes a proposed increase to the operating budget of just over three per cent. Her presentation generated much of the conversation that night. 

 

Her budget includes an OLG community recognition program, the gift card program and the transfer of advertising costs, which had been in the general government budget until this year.

 

She told council that $14,000 has already been pre-approved for the creation of Central Huron’s annual community guide, although she was requesting an additional $1,000 to make the guide accessible and, therefore, able to be posted on the municipality’s website.

 

This year’s Destination Central Huron projects are anticipated to cost $30,000. However, council broke down the department’s “Small Projects” budget, asking for more detail as to how the $36,582.35 would be spent.

 

Deputy-Mayor Marg Anderson had, at previous meetings, expressed concern about the specific budget line, saying that, whenever money was needed for something within the department, it seemed to materialize from the Small Projects budget, adding that she didn’t like non-specific accounts like that and wanted further information.

 

The biggest cost, $15,286.20, is listed for staff and equipment charges, which includes a student to help within the department. There are also costs for sculptures ($9,084.75 - offset by a Supporting Local Economic Development grant), materials and supplies ($4,178.87), advertising ($3,653.84), software ($1,659.89) and more.

 

However, within the department’s basic budget, council also suggested dropping a few line items, such as the sip and savour and wine and cheese events, in addition to some other events. With Harvest Fest and the Mayor’s Mingle already established, councillors were wondering if it was time to scale back on some of the other events in light of what will be a tough budget year. 
Council didn’t make a final decision on those events, but the budget process is still young.

 

In the building department, an increase of nearly 25 per cent is anticipated, largely due to the expectation of hiring a new building inspector later this year. The budget also includes a reserve contribution of nearly $78,000 and a 10.14 per cent increase to unionized wages and benefits, plus a one per cent and step increases for non-unionized staff.

 

Boyes also noted that there are software costs in the budget for Cloud Permitting, which includes implementation costs in 2024.
In the municipality’s cemetery budget, a 5.23 per cent decrease is expected. Boyes noted that there has been a trend towards decreasing interments and more interest in columbarium niches and cremation burials in family plots, which is permitted by Central Huron’s current bylaw.

 

On that note, Boyes told council that a new columbarium was approved last year. It will be tendered for and installed this year, though the municipality is awaiting a response from the Bereavement Authority of Ontario before proceeding.

 

In the municipality’s protective inspection budget, an increase in expenses of just over one-half per cent is anticipated. 

 

Boyes noted an increase in Ontario Provincial Police (OPP) costs of just under $30,000 and reminded council that Central Huron would be recovering some animal control costs from partner municipalities Huron East (40 per cent) and Morris-Turnberry (20 per cent).

 

He also said that money for the Maitland Valley Conservation Authority’s shoreline mapping project went unspent last year. This year, a contribution of $40,000 had been approved for the years 2024 to 2027. However, no specific budget has been provided, so Boyes has set aside $20,000 for the project this year until further details are provided.

 

The council, general government and health and safety budgets include an increase in overall spending of 4.07 per cent, which includes a 14.71 per cent increase to the council budget (as well as a 3.4 per cent increase to council rates) and a 2.79 per cent increase to the general government budget.

 

The budget includes a decrease in money from the Ontario Municipal Partnership Fund (OMPF) of $127,000 and a 10.14 per cent wage increase for unionized staff and a one per cent and step increases for non-unionized staff.

 

Boyes also noted that, due to an assessment error made by the Municipal Property Assessment Corporation (MPAC) that resulted in large net tax write-offs last year, there is a $1.5 million assessment reduction for the period from 2016 to 2019. Boyes said MPAC had erroneously assessed non-existent buildings at the Hensall Co-op location (formerly Fleming’s) in Clinton.
On the topic of council pay, Councillor Michael Russo opted to revisit a discussion from last year’s budget deliberations, in which council decided to turn down a raise for itself that would have been in line with the rest of its employees. He asked if council would return to the issue this year. 

 

Boyes said that was the plan, but that he anticipated that it would be a project for the summer, complete with a new evaluation and report for council to consider. As a result, the budget was left the way it was for the time being.

 

In the roads budget, Boyes anticipates an increase of 8.24 per cent, though he notes that the increase would be 5.56 per cent if municipal drains were not a factor. This includes an 8.3 per cent average increase in wages and benefits for unionized staff.
The municipality’s Ontario Community Infrastructure Fund (OCIF) allotment will be $1,167,970 this year, which represents an increase of more than $150,000 over last year’s funds.

 

He did note, however, that the light end to the 2022/2023 winter and beginning of the 2023/2024 winter means significant savings to the snow-plowing budget, as it stands now.

 

The roads department’s sheds budget is a small one, but Boyes anticipates a 9.8 per cent increase to expenses.

 

The operating budget for equipment this year is expected to rise by 4.8 per cent, chalking the increase up to inflation and an increase in staff wages. He also noted that some of the municipality’s older equipment is resulting in increased maintenance costs.

 

Finally, the street-lighting budget is expected to include an increase in spending of 8.88 per cent. Boyes said he was not recommending a change to the rates this year, but noted that rates will likely change when MPAC assessments are finally updated. 

 

The next budget meeting is set for Tuesday, March 5 at 5 p.m. in Clinton. It will be the first presentation of the municipality’s consolidated budget, following several sessions of departmental and operating budgets.