A financial update report to The Blue Mountains showed some indications of an economic slowdown.
At its committee of the whole meeting on Nov. 27, council received the Sept/Oct. financial update report from town staff, which showed some planning and building revenues coming in under budget.
Coun. June Porter expressed concerns about the lower-than-expected revenue columns.
“I’ve been a bit concerned about a potential slowdown,” said Porter. “Can we expect it to continue on this trend?”
The report showed that the revenues coming into the building and planning departments were sitting at about 70 per cent of the budgeted amount late in the year. Both numbers were significantly lower than the six-year trend the town has experienced. However, the report also showed that the town has collected more than $7.8 million in development charges so far in 2023, compared to more than $3.3 million in 2022.
Sam Dinsmore, the town’s acting director of finance/treasurer, said planning and building revenues are hard to predict. While he acknowledged a slight slow down in growth, the report indicates healthy revenues overall.
He said the town saw a number of development agreements signed, which explained the increase in development charges, but also saw delays in developers getting building permits.
“It is tough to forecast. It’s probably the toughest thing to forecast,” he said, noting that staff hope that town sees the numbers catch up in the 2024 budget.
Porter also asked if other local municipalities were experiencing similar situations as The Blue Mountains.
Dinsmore said he makes it a habit to monitor the real growth in local assessment around the region and he said that growth in assessment is easing up.
“The growth numbers are starting to slow down a bit. I don’t think we’re alone in this,” he said.
The report also highlighted increased revenues for the town.
Penalty and interest income was up significantly, as was interest income the town earns on its investment portfolio. Three town recreational facilities also exceeded 100 per cent of expected revenue – the Beaver Valley Community Centre, the municipal golf course and the harbour.
