While council and staff have managed to whittle away at the expected tax increase for Collingwood residents for 2025, council isn’t done yet.
At their committee of the whole meeting on Dec. 16, councillors took a look at the third draft of the 2025 town budget. As of the beginning of the meeting, the expected tax increase was sitting at 2.73 per cent. However, some previously jettisoned items were brought back by councillors during the meeting, with a new tax increase of 3.26 per cent expected in the fourth draft, which will come before councillors again in the new year.
During discussion was a motion to bring back $375,000 into the budget for two key legacy projects – a future multi-use recreation facility and an arts centre – to add funds for both projects to reserves.
While some councillors believed that putting money away now was imperative to making sure the projects are fully funded once they come to fruition, others raised concern that there was already a significant amount set aside through reserves for such a purpose, and in a tough budget year, something had to give.
“Even if it’s a modest amount, I’d like to show momentum for both of these projects,” said Coun. Christopher Baines.
According to most recent estimates, there is currently $3.14 million in the multi-use recreation facility reserve, and $1.4 million in the arts and culture legacy reserve. Most of the funds in these reserves came from the sale of some town assets in 2021 and the reserves have been earning interest, with little further investment made since.
“I think we’re in good enough shape. I think we’re comfortable to not have to do that this year,” countered Coun. Kathy Jeffery.
At the end of a lengthy discussion, council voted 5-3 to defeat a motion to add $300,000 to reserves for those purposes. Mayor Yvonne Hamlin, Coun. Deb Doherty and Baines voted in favour.
The reduction in OPP cost hikes for 2025 is reflected in the third draft, as is a $200,000 reduction in town insurance costs, reducing the scope of a parks, recreation and culture master plan refresh to just include parks, the removal of a request to increase a customer service position from part-time to full time and the removal of $275,000 for a pay policy review.
The pay policy review proved controversial at the table, as the motion to keep it in the budget failed by a 4-4 vote with Jeffery, Coun. Chris Potts, Deputy Mayor Tim Fryer and Coun. Rob Ring opposed.
“I think we have great staff. I think we have other ways we can reward them,” said Jeffery.
Following removal of the pay policy review, council voted unanimously in favour of keeping in a $115,000 request for non-union employee benefits.
Added to the budget during Monday’s meeting include $130,000 for the Georgian Bay Accelerator.
“I think, given the extreme importance and success of the business accelerator model, that we should fund it,” said Jeffery. “I think it’s good value for our money in terms of results.”
Fryer noted that the accelerator would also be approaching other South Georgian Bay councils to ask for funding this year as well, as all South Georgian Bay municipalities benefit from the accelerator.
Councillors also considered a request from the Collingwood Downtown BIA for $25,000 to make a downtown maintenance position full-time from part-time.
The part-time position is currently funded through the BIA’s budget, which is made up of taxes charged to downtown building/business owners only and grants. During discussions on the second budget draft, the town treasurer noted that the BIA levy had remained the same for the past two years.
While Mayor Yvonne Hamlin said she was generally not in favour of supporting the BIA long-term as a regular budget item, she conceded to vote in favour of the request with the understanding it would be a one-time favour.
“I think they can assume the cost if they increase the levy on their members,” said Hamlin.
Coun. Deb Doherty, however, was the sole vote opposed to the one-time cost. It passed with seven votes in favour.
“All taxpayers should not be on the hook for a budget item that is only going to benefit the BIA area,” said Doherty.
Council voted to keep in a request from the Georgian Triangle Humane Society for $31,500 per year, for 10 years, toward the cost of their capital campaign for their new Regional Centre for Pets and People on Sandford Fleming Drive. The GTHS will be approaching other South Georgian Bay municipalities as well to ask for similar contributions.
“We have a responsibility as a municipality to provide pound services. The GTHS does offer that to us,” said Hamlin. “It seems to me that $315,000 over 10 years doesn’t seem to be an exorbitant amount for those services. It’s prudent for us to have this located in our town.”
The town’s overall budget is made up of numerous income sources including the tax levy, payments in lieu of taxes, grants or government transfers, user rates, user fees, fines, investment income, and development charges.
Any decisions made during a committee of the whole budget meeting will be reflected in the next budget draft, and are not final decisions. More items can be brought back or removed in future drafts up until the budget is ratified.
While the town had hoped the budget would be finalized by the end of December, numerous factors have led to that deadline being extended. Draft four is expected to be presented to councillors at their first committee of the whole meeting of the new year on Jan. 13. The budget could be ratified as early as Jan. 27.
