Barrie homeowners are facing a 3.95 per cent property tax increase at this stage in the city’s 2023 budget process.
Council will hear a presentation on this year’s operating and capital budget at Wednesday’s meeting.
The annual budget sets service levels, along with the taxes and fees to pay for city services.
It also sets water and sewer (wastewater) rates, which are slated to increase by 3.7 and 5.0 per cent respectively this year.
“I will be approaching this budget as I have others, ensuring that only necessities are added affecting the tax rate,” said Coun. Gary Harvey, chairman of the city’s new finance and responsible governance committee.
“This will be another tough year as inflation is a concern for everyone, so we as a council will have to work diligently on the budget as I truly don’t believe that many residents cannot afford a combined 3.95 per cent tax rate increase.”
Coun. Sergio Morales said city council will be processing this draft budget, proposed by staff, as a team.
“With such a strong skill set and fresh perspectives of what residents value, I’m confident we can reduce the tax increase staff’s budget requires,” he said. “In addition to our own services, I will be honing my focus on ensuring the service providers’ tax increase asks are realistic and manageable.
“They deliver those services, but we communicate that increase to residents, so we all need to be in line and cohesive, especially during a time of inflation," Morales added.
That 3.95 per cent hike has three main components: city operations, service partners and the dedicated infrastructure renewal fund.
City operations include the 60-plus services offered in Barrie, such as public transit, winter control, garbage and recyclable pickup, park maintenance, recreation facilities, etc. These service costs are slated to increase almost $2.7 million this year, or 0.88 per cent more.
Service partners include Barrie city police, the Barrie Public Library and the County of Simcoe, which provides paramedic services, social and affordable housing as well as funds for sheltering the homeless.
These service partner costs are to increase by $6.3 million in 2023, or 2.07 per cent more.
It should be noted the annual police budget is normally about 20 per cent of the city’s operating budget. Police wanted 7.28 per cent more or a $3.4-million increase to its 2023 budget, when it was presented to the police board late last year.
The dedicated infrastructure renewal fund helps pay for the replacement and renewal of Barrie’s roads, pipes, buildings and bridges. It’s worth $3 million this year, and one per cent on the property tax bill.
All of which equals 3.95 per cent more for Barrie homeowners.
It’s expected to cost $8.1 million, or 2.66 per cent, more to maintain city services this year.
Coun. Ann-Marie Kungl, who sits on the city’s new finance and responsible governance committee, said Wednesday’s presentation is a financial overview ahead of presentations from city service partners and deliberations by councillors next month.
“This is the beginning stage of our 2023 budget planning process,” she said. “The 3.95 per cent is the proposed 2023 tax rate impact based on several assumptions including, but not limited to, maintaining service levels, a return to the commitment of a one per cent dedicated infrastructure renewal fund and support for service partner budget requests.
“Over the coming weeks, we will be exploring where we move from this initial point to ensure we balance our operating and capital budgets, as required by provincial law," Kungl added.
This year’s capital budget totals $360 million, although $271 million of that figure is requested spending, not yet approved.
There is $89 million in approved capital spending and it includes road resurfacing and flood mitigation, along with the study and design of the upgrades and capacity of the Wastewater Treatment Facility.
Municipal government budgets face a number of pressure points, and Barrie’s is no different.
City staff say Bill 23, the More Homes Built Faster Act of 2022, could greatly impact development charges (DCs), which are designed to recover the capital costs associated with residential and non-residential (commercial, industrial, institutional) growth within a municipality from developers so that existing residents don’t have to foot the bill.
Craig Millar, the city’s chief financial officer, has said Bill 23 could cause a reduction in DC revenues between five per cent and 10 per cent on an annual basis. The city should have collected approximately $100 million in DCs last year.
If that figure holds true in 2023, Bill 23 could cost the city $5 million to $10 million in DCs this year.
There are some measures in the 2023 budget that will not cost Barrie residents more.
Parking rates, for example, are not slated to increase.
And while stormwater user-fees are new, they could be less than what was paid through property taxes.
The owners of single-family Barrie homes should pay $10.75 a month — or $129 annually — in stormwater user fees starting this spring.
The average homeowner had been contributing $174 annually toward stormwater management through property taxes. These fees still need approval as part of this year’s city budget. For 2023, the proposed rate would be billed for nine months beginning April 1, 2023, and would total $96.75 for the year. The first three months would be funded by the federal gas tax rebate, totalling $2.6 million.
Barrie’s service partners are scheduled to make their budget presentations to councillors on Feb. 1.
Sitting in general committee, councillors will begin budget deliberations Feb. 8 and have left time Feb. 9 as well, if required.
City council could approve the 2023 operating and capital budget on Feb. 15.
Last year’s property tax increase was 2.94 per cent, which on a typical city home assessed at $362,740 equalled an increase of almost $132 — bringing property taxes on that house to $4,612 last year.
That 2.94 per cent increase is a blended number, for municipal and education taxes, which almost never increase, and included 0.75 per cent more dedicated infrastructure renewal funding.
City staff formally began working on the 2023 operating and capital budget May 16.
