Huron East Council nears end of budget with 11.8 per cent increase to levy

BY SHAWN LOUGHLIN

Huron East Council is considering a budget that includes an 11.8 per cent increase to the tax levy with just the final draft of the budget, with minor adjustments, left to be presented next month.

 

While council has yet to make a final decision after its March 19 special budget meeting, much of the operating increase, projected tax levy increase and reserve contributions have already been dictated by a financial strategy adopted by council last year.

 

Chief Administrative Officer Brad McRoberts presented the proposed budget to council alongside Director of Finance and Treasurer Stacy Grenier, telling council that the capital levy would have to increase by 4.2 per cent, just under $400,000, to cover the recommended capital expenditures. This comes at the same time as council has approved using “all existing discretionary reserves” to offset capital expenditures, while also gradually ramping up reserve contributions.

 

Also as part of the approved financial strategy, council is deferring all public works equipment purchases to 2025, with the exception of the purchase of a new rotary mower, and reducing the capital reserve requirement for the public works fleet from $610,000 to zero. Council has, however, ordered a new tandem truck for the municipality, which is expected to be delivered in 2025.

 

The strategy also includes the deferral of a number of recreation projects to 2025, though not all, as some have been established as critical. McRoberts, in his report, stated that council still needed to increase taxation for the parks and recreation reserve contributions from $260,000 to $800,000 to fund parks and recreation capital projects.

 

In discussing the capital levy increase of 4.2 per cent in 2024, McRoberts also reminded council of the approved financial strategy in regards to capital levy increases, which will remain high for the next few years (4.8 per cent in 2025 and 5.5 per cent in 2026) before dropping off in 2027 and 2028, with proposed capital levy increases of 2.1 per cent per year in both years.
As part of the approved financial strategy, council has deferred nearly $1 million in capital projects, including the roof replacement at the Newry shop office ($45,000), public works truck replacements ($565,000), upgrades to dressing rooms at the Vanastra Recreation Centre ($40,000), Seaforth tennis courts ($60,000), Brussels ball diamond regrading ($50,000), Cranbrook Hall roof replacement ($50,000) and Seaforth fire hall upgrades ($50,000).

 

McRoberts also added three recent additions to the capital projects budget: Newry shop heaters ($30,000), parks truck replacement ($75,000) and Grey Fire Department gear rack ($10,000). He noted that the truck replacement was not expected to be part of the budget, but the existing parks truck did not pass its safety examination and needs to be replaced immediately.
As part of his budget presentation, McRoberts noted the nearly $5.2 million in operational and capital budget items, including Sports Drive in Brussels ($1,161,756), the M-28 and M-13 bridges of Canada Company Road near Walton ($440,000), six municipal drains for a total of just under $285,000, two roof replacement projects at a total of $121,000 and a water main on Sports Drive at a cost of $411,804.

 

Further projects include a roadside rotary mower ($25,000) and new shop heaters at the Newry roads shop ($30,000) in addition to a number of parks and recreation projects: Seaforth and District Community Centre (SDCC) roof replacement ($1.3 million); SDCC dehumidifier replacement ($42,000); SDCC ceiling beams refinishing ($50,000); Brussels, Morris and Grey Community Centre (BMGCC) brine pump $50,000); BMGCC electrical panel replacement ($125,000); Brussels pool filters ($7,000); Brussels pool deck $40,000), Walton ball park lights replacement ($75,000), Winthrop park picnic shelter demolition ($5,000); Seaforth Optimist Park light replacement $50,000), Quebec public park ($100,000), parks mower replacement ($25,000) and the parks truck replacement ($75,000).

 

In the administration department, capital costs include office renovations and furniture ($65,000), town hall HVAC replacement ($28,000), town hall rear roof replacement ($80,000), large plan scanner for the building department ($10,000), AMP software ($51,000) and computer replacements (no cost specified).

 

There is $75,000 budgeted for wayfinding signage and $20,000 for the Community Improvement Plan grant program in the economic development budget and nearly $350,000 for costs associated with the fire service for bunker gear and personal protective equipment, gear racks in Brussels and Grey, HVAC at the Brussels fire hall, lifting bags, accountability boards, the Brussels fire hall parking lot expansion, the Grey ventilation fan, SCBA compressor and fill station in Seaforth, and equipment decontamination in Grey and Seaforth. There is also a cost of $99,000 for the replacement of the fire chief’s vehicle, but that cost will be shared with North Huron.

 

McRoberts told council that two projects could be deferred from 2024 to 2025 (the SDCC ceiling beam refinishing and the Brussels fire hall parking lot expansion), which would reduce the overall levy by about one per cent. However, it would then increase the 2025 levy by approximately two per cent.

 

He noted a number of factors that have to be incorporated into the reasoning behind the budget increase, such as the cost of living increase, the compensation review for all municipal staff (including members of the fire departments), insurance increases, health and benefits increases, full implementation of the Huron East succession plan and more.

 

As a result, when his presentation reached its end, McRoberts said the budget brought forward reflected the financial plan approved by council after extensive consultation last year. Furthermore, he said the budget covered the capital projects council had indicated were a priority for the municipality, so, if cuts were to be made, it would mean projects or services being cut and staff would need that explicit direction.

 

Councillor Bob Fisher criticized the in-and-out nature of reserve contributions in the budget, which will see council contributing to its own reserves, only to take them out immediately to pay for this project or that. He felt it didn’t make much sense.

 

McRoberts acknowledged the unusual nature of it, but said that, as part of the financial strategy, he is trying to get council used to the idea of contributing to its reserves and, while much of that money will be used this year, the time will come when council will be back to building up its reserves, so this would be a step towards that time.

 

Fisher said that every news report he had heard from other Huron County municipalities and the county itself included increases of eight per cent or less, which is where he’d prefer to see Huron East’s budget. 

 

Councillor Larry McGrath was also critical of the municipality’s investment in property in Brussels, saying that if council hadn’t tied up $2 million in that land purchase, that money could have been put to good use in this year’s budget. 

 

McRoberts pushed back on that assertion, saying that while staff would have preferred if the properties had sold quicker, that money will be recouped and returned to the working capital as properties sell, so that money shouldn’t be considered lost, but as an investment.

 

McRoberts said that there are still a few tweaks to be made, but that staff could return with a final draft of the budget soon, alongside a bylaw to adopt the budget and establish tax rates for the year.