‘A very challenging budget’; County recommends 3.5% tax hike

$701M draft County of Simcoe 2023 budget will be considered by new council in January

County of Simcoe council chambers. Jessica Owen/BarrieToday

County of Simcoe councillors talked numbers last week, and left a $701-million plan for the newly elected 2022-26 council to consider.

The plan for the 2023 draft budget comes with a 3.5 per cent increase for the taxpayer – the largest year-over-year increase proposed at the county level in more than five years.

On Nov. 3, the $701-million operating and capital draft 2023 County of Simcoe budget with a 3.5 per cent tax rate increase was initially presented and supported by council during a special meeting. Of the $701 million in total spending planned for 2023, $151 million is earmarked for capital projects.

The budget includes funds for continued investment in three major affordable housing developments in Barrie, Orillia and Bradford West Gwillimbury and the addition of more than 22 new full-time, permanent staff positions.

“This was obviously a very challenging budget with everything that’s gone on post-COVID,” said the county’s Chief Administrative Officer Mark Aitken.

Earlier in August, General Manager of Corporate Performance Trevor Wilcox warned county councillors that the 2023 budget would come in with a higher tax levy than normal. Some of the increases expected to expenses at the county level at that time included an 18-per-cent rise in insurance rates, 12-per-cent jump in natural gas costs, three per cent more for electricity and water and Ontario Works caseloads expected to rise.

Since at least 2016, the County of Simcoe tax levy increase year-over-year was kept at two per cent with two exceptions: in 2018 it came in at one per cent, and in 2021, there was no increase.

During Thursday’s meeting, Wilcox said the county was “targeting a budget of restraint.”

“We are achieving a 3.5 per cent increase in the levy which is half the rate of inflation,” said Wilcox. “We still have a strong financial position, however, it is a low operating balance, but we feel it is appropriate for this year.”

Staff are proposing 22.4 new full-time equivalent positions be added in 2023.

New positions would include a part-time museum summer student, a tourism program supervisor, an asset management supervisor, human resources strategic business partner, a real estate co-ordinator, an occupational health and safety nurse, six paramedic staff, a part-time social worker, 1.6 recreation therapists, a building superintendent, a housing clerk, a tenant navigator, a junior facilities engineer, 3.5 new solid waste management staff and a senior planning project manager.

For comparison, in 2022, the budget was approved with 44 new full-time-equivalent positions included.

The 2023 draft budget, containing operating and capital expenditures, can be further broken down as follows:

Paramedic Services – $67.5 million
Senior Services – $10.2 million
Long-term care – Homes - $111.2 million
Transportation and engineering – $76.6 million
Solid Waste Management – $84.8 million
Children’s Services – $79.2 million
Community Services – $19.3 million
Ontario Works – $70 million
Social housing – $90.8 million
General municipal services - $32.9 million
Other departments - $58.7 million

Figures provided represent the amount in the 2023 budget for these projects, not the entire projected cost, which, in many cases, is spread out over multiple budget years.

There are three major affordable housing developments included in next year’s budget, including one each in the City of Orillia ($21.3 million), the City of Barrie ($1.8 million) and the Town of Bradford West Gwillimbury ($15.3 million).

There are funds allocated for the Lake Simcoe Regional Airport strategic plan and the redevelopment of Simcoe Village in Beeton.

Major road construction projects this year include Simcoe County Road 4 in Bradford West Gwillimbury/Innisfil and County Road 21 through Baxter with related road, bridge, and intersection components.

Paramedic Services forecasts are calling for volume growth to be 5.7 per cent in 2023, which will come with an overall price tag of $59.8 million. Salaries and benefits account for $49.3 million of that.

As Barrie and Orillia are separated cities, the two municipalities allocate a specific amount in their own budgets to pay for the use of some county services and capital project costs, instead of individual levies for each resident.

For the City of Barrie, its contribution will come with a price tag of $32.6 million for 2023, an increase of 11.6 per cent over 2022 budget numbers.

For the City of Orillia, its contribution will come with a price tag of $9.2 million for 2023, an increase of 11.3 per cent over 2022.

Due to the recent municipal election, instead of passing the budget, county councillors were instead tasked with recommending the budget to the 2022-26 county council, which garnered initial approval by councillors on Thursday. The new council will consider the 2023 budget at a special meeting on Jan. 10, 2023. Depending on outcome, the final 2023 budget could be ratified as early as Jan. 24, 2023.

Where do your county tax dollars go?

For every $100,000 of MPAC assessment on a home in Simcoe County, the taxpayer would pay $288.80 in 2023 in county taxes, should the budget be adopted. Here’s what each service would receive as part of that levy: