It may still be early days for crunching numbers at the County of Simcoe, but at least one councillor is concerned about the potential for a tax increase that he believes would create an undue burden on local taxpayers.
Bradford West Gwillimbury Mayor James Leduc spoke up during Tuesday's committee of the whole meeting as councillors were presented with a report from staff titled "High Level Draft Budget Assumptions."
The report asks for council's consideration and direction in the development of the county’s 2024 draft budget. Due to a variety of factors, the report says the tax levy increase is suggested to be in the range of two per cent for asset management and three per cent for operating expenses, for a combined increase of approximately five per cent for 2024.
“That is an extreme number that’s going to be a great burden for many people out in the county," Leduc said. "Many homes are one paycheque away from losing their home with the cost of living right now.
"I certainly want us to look at ways to reduce this budget from five per cent down to a reasonable number that makes sense for everybody in the county," he added. "When you read the report, and it is just a high-level assumption, but you agree to five per cent, I think that’s what they are coming back with."
Leduc also said he believes the county needs to look at ways — including the possibility of service delivery cuts, if necessary — to accomplish that.
“I think we need to sharpen the pencils and … make sure that we deliver a budget that is acceptable to the residents of Simcoe County,” he said.
Later in the meeting, Leduc tabled an amendment asking staff to bring forward a draft budget with an increase of no more than three per cent, but the motion was ultimately defeated.
Trevor Wilcox, the county's general manager of corporate performance, noted staff take the process of putting together an estimate for the budget for the year very seriously.
“We did have a restrained budget going into this year, following a significant increase in inflation, but you will see that even the CPI (consumer price index) is going to exceed the increase that we did put in last year," he said.
"My concern isn’t just for this year, but if we don’t implement a larger than a two per cent increase this year we are going to pay the price sometime soon," Wilcox added. "I don’t want the county to be in that position. I am trying to get ahead of it and trying to stay ahead of that.”
Leduc said he was making the suggestion for a different recommendation because the last time he attempted to reduce the budget by removing $1 million at the last minute, “everyone was upset.” He said that is why he was making the suggestion before the official budget deliberations get underway.
“They are being told, with this recommendation, that they can come back with a budget of five per cent and we will debate it then," he said. "It’s difficult to debate it then. I am trying to be ahead of the game … and would like staff to come back with some different alternatives in that assumption.”
Adjala-Tosorontio Mayor Scott Anderson said the county can't look at anything less than what they had last year for an increase.
“If we are looking at a tax increase this year — we had 3.5 per cent last year — so anywhere in the range of (that) and five per cent is something we can live with, but we cannot reduce what we were looking at from last year," he said. "We need to stay ahead of things and if we start undercutting ourselves we will be in far worse at the end of the term than we are here.”
Midland Mayor Bill Gordon reminded council that they were not approving a budget, but merely providing staff with some “breathing room” as they proceed with the budget process.
“That whittling down of the estimates that we see on that budget is something we are going to do collectively," he said. "I don’t know if it’s worthwhile doing that now by cutting the legs out from under staff. Let’s give them this number and then we will get to the hard work."
Gordon said they have to be careful with raising tax rates if it causes people to be "tipping people over the edge."
“The social issues that are starting to unravel in the fabric of our society are going to happen regardless and I don’t know that us nickel and diming and hamstringing staff … is really the best solution," he added. "I think the best time to do that is on the council floor when we have that draft in our hands and we can start making the red lines and getting it down to a number we are comfortable with."
Council is expected to begin voting on the budget line-by-line by mid-October.
