Collingwood council may have approved the 2024 budget and 1.67 per cent tax increase, but they didn't agree on it.
The budget process, which started back in September, clearly took its toll on councillors, with some angry outbursts punctuating Monday’s budget talks.
At the last meeting of council on Dec. 18, a motion was passed to utilize the 2023 projected year-end surplus of $1.38 million to reduce the general tax rate increase to zero, from the previously discussed 3.49 per cent increase. Another motion was passed to increase the Special Capital Levy to be 2.5 per cent of the general tax rate. These changes, blended together, account for the 1.67 per cent increase overall.
“I’ve thought a lot about this since our last meeting. It’s very attractive to have a zero per cent tax increase,” said Mayor Yvonne Hamlin at Monday’s meeting, noting that the usual town process for dealing with a surplus is to put it into asset management.
While speaking to the matter, Deputy Mayor Tim Fryer waved his yellow card, asking to speak.
“You can speak when I’m finished. Put your card down,” said Hamlin abruptly. “I’m not debating. I’m speaking to the motion.”
After a pause, Hamlin continued.
“We have to ask ourselves as council when we’re voting for this, is this in the public interest?” said Hamlin. “If we do this, next year when we start our budget deliberations we’re going to be at a number we’ve spent this year. We can’t assume we’re going to have another surplus to throw at it.”
“I’m not in favour of this myself,” said Hamlin.
Hamlin decided against allowing Fryer to speak, noting he had spoken already. Fryer called a point of order.
“You debated. Whether you think (so) or not,” said Fryer to Hamlin. Under the procedural bylaw, Fryer said the chair of a committee must relinquish the chair before speaking on a matter.
“Why aren’t I allowed to speak to the motion?” shot back Hamlin, speaking over Fryer while he also attempted to speak. “I’m allowed to speak to the motion. I’m allowed to order who speaks. You already spoke.”
Hamlin tried to suggest discussion was over and to call a vote, but none of the councillors raised cards.
“Am I doing something wrong here?” Hamlin asked clerk Sara Almas, who clarified that chairs should relinquish the chair when speaking to a motion on the floor. “I’ve done this for a year now and I’ve never relinquished the chair.”
Coun. Kathy Jeffery noted not all councillors had spoken to the motion yet.
“It’s not a very inclusive process,” said Jeffery, noting that she was opposed to allotting the surplus to offset the tax increase this year.
Hamlin said she apologized if she had limited the debate.
Chief Administrative Officer Sonya Skinner cautioned councillors against passing a tax rate increase below the rate of inflation. As of now, the current Consumer Price Index (CPI) is at 3.3 per cent.
“I believe putting taxes significantly below the cost of inflation will make it more difficult for you to accomplish some of your goals,” said Skinner, specifically noting major road projects, the possibility of a multi-use recreation facility and the water treatment plant expansion. “Becoming quite lean is not going to serve you well.”
A motion was put forward by Coun. Deb Doherty to essentially split the difference, to allot $225,000 of the surplus funds to the tax increase bringing it to 2.9 per cent, with the remainder of the surplus going to the life cycle reserve fund, however it was defeated by councillors by a 5-4 vote.
In the staff report prepared by the treasurer, Monica Quinlan, she cautioned councillors that using the surplus to pay for operating expenses this year will, essentially, just push the inevitable tax increase down the road from this year to next.
The operating budget covers items like salary grid increases, cost of living allowance, contract negotiations, insurance costs and more.
Council and staff have been working on the 2024 budget since the summer, with six drafts to date and public presentations beginning in September.
The town collects about $40 million in taxes in a year.
Through the town’s operating budget, major items include salaries and benefits for existing staff, new staff hires for an engineering manager ($160,000), business analyst ($98,000) and a part-time administrative assistant to the mayor and council ($50,000), and inflationary items such as increases to insurance (10 per cent), natural gas (eight per cent), hydro (four per cent), materials (salt, sand and other 4.5 per cent) and fuel (seven per cent). Council voted earlier in budget talks to put $350,000 into the town’s affordable housing reserve.
Major capital spending items for 2024 include $475,000 for bus replacements, nearly $13 million for road work across town including $525,000 for the Sixth St. trunk watermain and $490,000 for First St./Pretty River Parkway street side enhancements. About $100,000 is included to add irrigation to downtown garden beds and $450,000 toward washrooms at Old Village Park.
The entire 2024 budget accounts for $142.7 million in town spending, split between $71.7 million in operating expenses and $71.1 million in capital expenses. Of that, $39.6 million is raised through taxes.
At Monday’s meeting, council severed the budget into two parts when it came time to vote.
Council voted on budget matters relating to permanent full-time and part-time staff as a separate motion, as Deputy Mayor Tim Fryer, Coun. Kathy Jeffery and Coun. Chris Potts declared conflicts and did not vote as they have family members who work for the Town of Collingwood. Remaining councillors passed the motion by a unanimous vote.
The remainder of the budget was approved by a unanimous vote.
Collingwood property owners living in a median assessed home worth $327,000 will pay $75.66 more on their tax bill in 2024.
During their regular council meeting on Jan. 8, council gave final approval of the 2024 budget, which would see a tax rate increase of 1.67 per cent. This translates to an increase of $40.70 per year for a home assessed at $327,000, which is the current cost of a median assessed home in Collingwood according to the Municipal Property Assessment Corporation (MPAC).
With the school board planning no increase this year, and the County of Simcoe passing a tax increase of 3.7 per cent, the blended tax rate increase is 1.95 per cent, which would result in a median-assessed household paying $75.66 more on their total bill in 2024
