Brace for impact, because Collingwood’s budget could come in high in 2023.
Town treasurer Monica Quinlan provided an update to councillors during their strategic initiatives standing committee meeting on Aug. 7 on the state of the 2023 budget, painting a picture to prepare them for what challenges the town will face this year with rising costs on the horizon.
“I think it’s going to be a difficult year,” Quinlan told councillors. “There are lots of pressures. It is our thought at this point that... without any changes to services or staffing, we expect it’s possible the town’s costs will increase from anywhere between 3.5 and 7.5 per cent.”
“If inflation continues at the current rate, the cost pressures will continue for the capital budget as well,” she said.
Quinlan told councillors that as of the end of June, the Consumer Price Index (CPI) for Ontario is 7.6 per cent. Natural gas prices also rose at a significant rate of 45.3 per cent in Ontario compared to 2021.
“It’s significantly higher than what we’ve been dealing with in the past,” said Quinlan. “There’s a lot of pressure as we work our way through the 2023 budget.”
Collingwood remains in the top 10 fastest growing urban centres in Canada according to census data released by Statistics Canada.
According to Quinlan’s staff report, at this time, the growth rate for the Town of Collingwood from an assessment perspective has increased 2.4 per cent.
Collingwood’s 2022 tax rate increase came in at two per cent. This brought in $36,779,741 as the total levy for the town.
“This year, if the town did raise the same amount of taxes for 2023, we would see a tax rate decrease of about two per cent,” said Quinlan.
“We know 2023 will be an interesting year. I’m sure there will be lots of opportunities as well,” said Quinlan, noting there are some options for councillors to consider to ease the strain such as deferring some capital projects, or increasing borrowing.
“It’s really important we identify what’s critical to maintain our systems and services,” she said.
Councillors voted unanimously in favour of receiving the information (Coun. Kathy Jeffery and Coun. Bob Madigan were absent from the meeting), while Mayor Keith Hull urged residents to get involved in the budget process.
“It bothers me as a resident and taxpayer that in 2010 we had a public open house (on the budget) and I’m not sure if we had 10 people in attendance,” said Hull. “It’s disappointing that we don’t have the public participation as it relates to such a significant decision.”
“I think this is one of those decisions where public feedback would be greatly appreciated,” he said.
The Town of Collingwood 2023 public budget survey is now available on Engage Collingwood here, and closes on Sept. 24.
As of now, the first draft of the 2023 budget is expected to come before council at the end of November, with final ratification expected at the end of December, although Quinlan noted the timeline may shift.
