Grey County settles on 2024 budget with 6.3% tax increase

Grey County council has settled on a budget for 2024.

Council held its final budget deliberation meeting on Dec. 15 and walked away from the table with a county increase of 6.3 per cent, which amounts to $69.28 annually for the average assessed single-family home in the county. The county tax levy combines with the local municipal tax levy and the school board levy to form the total property tax bill.

Should the budget be approved, in 2024 the county will spend a total operating and capital budget for $269 million. A number of factors contributed to the increase in the county budget including: general inflation, construction inflation, rising insurance costs, utility costs and in-year decisions.

County council struggled with setting the budget for 2024. The initial tax increase presented to council exceeded 10 per cent and council held a number of budget meetings to work on lowering that initial number.

The 2024 budget maintains service levels across many County programs and invests in significant projects including the redevelopment of Rockwood Terrace, $30 million to support road construction, constructing a new EarlyON centre in Hanover, and takes the first steps towards building a new paramedic services base in Durham.

County council also mandated some service level reductions to lower the 2024 tax increase. They include: county funding will be withdrawn for the Grey Transit Route and service levels will be reduced to align with funding from the province’s Community Transportation Program. Some transfers to reserves for vehicles and heavy equipment were removed and the annual transfer to the healthcare initiatives reserve was reduced.

The reduction to the Grey Transit Route resulted in $438,000 in savings and passed in a 57-32 weighted recorded vote.

“This has been one of the most challenging budgets at the county council table in recent memory. Costs of everything are up and council realizes everyone is feeling more pressure in their day-to-day expenses,” said Grey County Warden Brian Milne, in a news release. “We’ve had challenging discussions. I think we’ve struck a balance and landed in an affordable place for our communities.”

The Blue Mountains Deputy Mayor Peter Bordignon said he feels the 6.3 per cent increase is too much.

“I believe it’s still too high in this economy and with the pressures at the local level. There is only one taxpayer and one taxpayer’s wallet,” said Bordignon. “County council has made some strides for some big ticket items to help this year. There is still an opportunity during this budget to further assess capital expenditures as we move forward.”

Grey Highlands Mayor Paul McQueen said the proposed county increase would have a significant impact on local municipalities.

“It’s as high as I’ve ever seen it,” McQueen said of the county budget. “It basically means we don’t have the flexibility at the lower tiers as we’ve had in the past. The dynamics are going to change. We have to roll up our sleeves.”

McQueen also said it may be time for the county to examine its structure.

“It boils down to: maybe the county can’t do it all anymore,” he said.

County staff will now revise the 2024 budget packages to reflect council’s changes. A bylaw to officially adopt the budget will be presented for council’s consideration on Jan. 11.

The draft 2024 budget details can be found here. Updated materials will be available on the county website prior to the meeting in January.