December 2nd , 3rd and 4th , 2024
Council met over three evenings to review the draft budget prepared by staff. All council members were in attendance.
The first evening was primarily taken up with presentations from various groups seeking funding in 2025. These are addressed further in this review.
2025/26 OPERATING BUDGET
This year Council has directed staff to put forward a two-year budget.
Staff identified three significant pressures as being out of the control of the Municipality and which equate to 4.46% of the Municipal Tax rate.
These items are
- Ontario Provincial Policing (OPP) cost estimates up 21% from 2024’s municipal bill of $2.65m to $3.2m
However, this was prior to the Province providing over $451,000.00 to help offset OPP cost increases.
- Insurance costs for 2025 estimated at a 10% increase over 2024 for a total of $851k
The annual insurance cost would be $773 K. if a 10% increase brought it to $851 K. or an increase of $77.3 K.
It was noted in a recent Midland Today article that Tay Township experienced only a 1.5% increase in insurance costs under a Simcoe County municipal insurance pool agreement. The 1.5 per cent increase was in comparison to roughly $596,999 last year at an $8,900 difference.
As per a county report, Tay Township could potentially see a savings of just over $1 million after five years in the municipal insurance pool, with the county possibly saving nearly $37.7 million in that time.
The following was included in the County Reports for the December 13 CoW meeting.
Each participating municipality is requested to complete and submit the Form of Subscription within the subscribers’ agreement by March 1, 2025, to allow time to set up the advisory board and then become one of the Founding Subscribers effective June 1, 2025.
The Municipal Insurance Pool will allow subscribers to gain greater control of and reduce an existing substantial expense by 13 to 20% immediately, and then by 19 to 27% after set-up. Representing 1 to 2 million dollars in savings over the next 10 years for each municipality.
- 15% decrease in the Ontario Communities Infrastructure Grant (OCIF) from $1.036m to $880k for 2025.
There was no reason provided as to why the OCIF grant was reduced given Tiny’s dire infrastructure situation.
These optional additional adjustments were identified and amount to a 4.35% of the increase on the Municipal Tax rate.
- an additional 2.39% infrastructure tax levy increase as per the recommendation from the Asset Management Plan
- one Full-time proposed position, one Student proposed position
- keeping the Student/Seasonal/Volunteer Fire Fighter (VFF) wage grids in parity with the rise in the minimum wage rate.
BUDGET ASSUMPTIONS
Staff advised that the first draft of the 2025 budget was presented with some incomplete or unknown information as follows:
• 2024 spending on certain operating activities and capital projects is not complete at this point in the year. 2024 actual costs are updated as of October 31, 2024. As a result, Staff have provided certain estimates to determine costs to complete those items. These estimates have been denoted by a dotted lined box.
• Per the Municipal Act (s.290(4)), operating surplus from the prior year is to be treated as revenue. Following year-end, Staff will prepare the 2024 year-end variance report identifying the estimated available surplus to apply the draft 2025 budget. At that time, should there be any surplus, Council can then direct the surplus to be applied to reduce the taxation rate or to allocate the surplus to a Reserve Fund.
In April 2024, Council decided to allocate 2023 budget surplus to reserves rather than to reducing the tax rate.
• The formal Assessment Roll has not been released, however, based on preliminary information obtained through the Municipal Property Assessment Corporation (MPAC), the estimated assessment growth for the township for 2025 is an increase of 1.26% or approximately $215 K. in additional tax revenue based on 2024 municipal taxation rates. For the 2025 draft budget, the proposed 2025 municipal tax levy will be based on an estimated total assessed value of $4,423,064,171 (excluding Exempt and Payment in Lieu (PIL) properties).
• At the time of drafting the budget the, Simcoe County has approved a 3.625% tax rate increase, and the Province of Ontario has announced that the education rate will remain the same for 2025. These rates plus the proposed municipal tax rate increase will result in a blended tax rate increase.
DEBT FINANCING and ANNUAL REPAYMENT LIMIT
A report is scheduled to be brought to Council on December 11, 2024, to seek authority for an application to be filed for financing through Ontario Infrastructure for a construction loan facility. This was ratified by council on November 20th. Anticipated costs for the construction loan facility are captured under the Operating budget called Debt Financing.
For the purposes of securing financing, the maximum of new annual debt servicing costs (principal and interest) that a municipality can undertake without seeking prior approval from the Ontario Municipal Board is based on the Annual Repayment Limit (ARL) issued by the Ministry of Municipal Affairs and Housing (MMAH) each year (O. Reg 403/02).
Tiny’s most recent issued ARL is $5,227,838.
Note, using the anticipated assessment base for 2025, for every 1% municipal tax rate increase, the tax revenues would rise by $172,151.
Council and Full-time Staff
The Consumer Price Index (CPI) shows a 12-month trend and a year-over-year change of +1.6% (Canada). Based on this information, staff recommend that at minimum, the cost-of-living adjustment (COLA) to wages be set at 1.5% for Full-time staff and Council. A COLA increase of 1.5% would amount to a budget increase of $125k or $100k net of reserve funded salaries.
Comment: This amount was agreed to and has been included in the 2025 Draft Budget.
DEBT FINANCING – TOWNSHIP of TINY ADMINISTRATIVE CENTRE
• In 2024, the tax supported budget for the Township of Tiny Administration Centre was $400k under the Capital project 02-300-2610. As communicated in Staff Report PWR-013-24, $400k was raised in the taxation levy in 2024 and now forms part of the tax levy for 2025 even if a 0% tax rate increase is adopted.
• To ensure that there are enough funds built into the budget for future debt servicing costs, the $400k has been reallocated to a new Operating Budget from the Capital Budget noted earlier and earmarked in the 2025 Budget as a transfer to Debt Financing Reserve to be available to use towards the financing costs in 2025.
• For 2025 an additional $250k has been earmarked to be added to the Debt Financing Reserve to continue to build up the amount through the tax levy so by substantial completion of the new TTAC there should be enough room built into the tax levy to pay the full estimated costs on an annual basis as discussed and demonstrated in Staff Report PWR-013-24. Note, currently there has been no commitment on a specific type of financing, interest rate, terms, or structure.
• In the September 16, 2024, TTAC minutes, the committee approved to move forward with a report to Council on requesting approval to apply to Infrastructure Ontario for a construction loan. These minutes were approved at the Council meeting on November 20, 2024.
• A staff report on behalf of the committee will be on the December 11, 2024 Council meeting agenda regarding the approval of the application for a construction loan arrangement with Infrastructure Ontario. If Council approves the application, Staff will proceed to apply for an interest-only construction financing arrangement with Infrastructure Ontario. It is anticipated, based on the capital budget amount for the project in 2025, and on the expected draw dates for the financing that $250k in interest payments will be incurred in 2025. The $250k amount is shown as an interest expense line item on the Operating budget and funded by a transfer from the Debt Financing Reserve.
• If Council wants to make more then an interest only payment on the construction financing, there will be $650k available as long as the $250k earmarked in the 2025 draft budget for the Debt Servicing Reserve is approved.
Arenas Reserve
• As in 2024, the same funding level ($56.5k) previously provided to Penetanguishene and Midland arenas is proposed bringing the reserve amount to $113,000.
Comment: It is assumed that when Council discontinued payment to neighbouring municipalities for arenas and library services they were planning to build an arena on the new municipal building lands along with a library. Thus, one of the reasons to select a site much larger than initially required.
However, during budget discussions there was no mention of this rather talk of the Arena Reserve being utilized for future township investment in converting existing outdoor rinks to artificial ice.
Resident Membership Reimbursement Program (previously Libraries)
• The Library Operating Grant (PLOG) has been earmarked at $38k. Staff have confirmed that the PLOG grant is still applicable for the library reimbursement program and have included it in the 2025 budget.
Staff did not apply for the grant in 2024.
• Staff have kept the library membership reimbursement budget the same as in 2024 and any surplus will be directed to a library reserve fund as discussed in the 2024 budget deliberations. If a deficit occurs, staff will propose a resolution at that time.
• As of October 31, 2024, with the invoices received to date the library membership reimbursement program is as follows:
Library Household Reimbursements
Midland $137k 680
Penetanguishene $ 16k 72
Springwater $ 11k 150
Total $164k 902
Council discussed the program with the Deputy Mayor questioning the value of the Penetanguishene library agreement. Councillor Walma noted that only 680 of some 12,000 households were availing themselves of this and was critical of residents for not using this free service.
FUNDING TO ORGANIZATIONS
The funding provided to organizations supported in 2024 are at the same level as 2024 except for Cultural Alliance who submitted $5k lower funding request for 2025. A total of $54k to be funded to the following organizations is in the draft budget;
- Georgian Bay General Hospital (GBGH) Foundation ($20k)
- Physician Recruitment Program ($12k)
- Community Reach ($7.5k)
- Bay Shore Seniors ($6k)
- Georgian Bay Seniors ($8k)
- Culture Alliance ($7.5k)
- Wheels 4 Wheels ($5k)
SHORT-TERM RENTAL Accommodation Licensing
• The Short-Term Rental (STR) Accommodation Licensing program is set-up to be a net zero budget and is not tax supported. All costs for the program are to be covered by licence fees, so there is no impact to the tax rate.
• In 2024 realizing that licenses revenues were coming in lower than anticipated during 2024 budget planning, staff made realignments in the program.
• Revenues for 2025 have been decreased to reflect a conservative number of licenses to be issued (200) in line with 2024 actuals resulting in a decrease on license revenue of $175k for a total estimate of $350k for 2025.
• Further staff position adjustments were made as follows that resulted in $134k in remuneration reductions.
- reducing hours of the STR-Fire Inspector in mid 2024 and with the recent approval of Council replacing with a position that is shared with the Fire Department. On November 20, 2024, Council approved the position of Chief Training Officer/STR Fire Inspector.
- the licensing coordinator position was adjusted to assist with By-law and Clerk’s Department administrative work in addition to STR work which reallocates some remuneration to the By-law department.
- As STR compliance is becoming more realized there is less time required and estimated to be required of By-law staff enforcing the STR by-law, corresponding in further reduction of time allocated by by-law officers to the STR program.
- the elimination of the contract STR-Building/zoning position that became vacant in January. The associated review duties of this position were absorbed by existing building and planning staff while the communication duties of the position were incorporated into the STR-Fire Inspector position.
- Staff propose that the Fire vehicle purchased in 2024 by way of a loan to the STR program (from Corporate Capital Reserves) be transferred to the Fire department as the vehicle is to be used by the new Fire Training Officer/STR Fire Inspector. This adjustment has further reduced the STR budget by $10.5k. A charge back for use of time of the vehicle for 2025 has been earmarked at an estimate of $1750.
Only a transfer from reserves and jiggling of staff hours allowed this to be a net zero program this year.
ANIMAL CONTROL
Councillor Helowka questioned the large amount being paid to Huronia Animal Control budgeted at $72.8 K for 20-25 and whether there were any details on their activities. Clerk Walton reminded him that there is a monthly report on the consent agenda detailing all activity. CAO Lamb inserted that to establish a Township run facility would be far more expensive.
ECONOMIC DEVELOPMENT
• Tiny has provided yearly support to the Economic Development Corporation of North Simcoe (EDCNS); a non-profit organization that promotes the economic growth and prosperity of North Simcoe. The funding request received from EDCNS was up by $13k for 2025. The total allocated is $73,855.00
There was no payment made to EDCNS in 2024 but no mention why. Given this not-for-profit group represents the four municipal neighbours (Midland, Penetanguishene and Tay), the withdrawal by Tiny is a significant blow to the organization.
After much discussion of the value being received, it was decided to advise EDCNS we would not be funding in 2025 due to budget restraints and the need for a revised funding formula.
The payment of $73.9k for 2024 was not paid and $25k will be retained in a new Economic Development Reserve.
COMMITTEES
Parks & Rec, Seniors, Accessibility, Youth, Teens, Golf, Health & Safety, Heritage and Committee of Adjustment budgets were reviewed. In 2024 $271,500.00 was budgeted yet expenses to date only total $157,750.
This is $113,750 under budget with basically the same 2024 budget numbers being adopted for 2025. These budgets are historically underspent.
WATER
• Water operations are funded on a cost recovery model, in which all expenses are covered by user fees, and the surplus/deficit is transferred to the water reserve. For 2025 it’s projected that operations will see a surplus of $821k which will be transferred to the Water Reserve.
OPERATING COST SUMMARY
2024 Actual 2024 Budget Variance 2025 2026
MUNICIPAL TAXATION $17,935,469.00 $17,917,634.00 -$ 17,835.00 $21,151,768.00
Mayor & Council $430,178.00 $597,462.00 $167,284.00 $597,446.00 $609,703.00
CAO Clerk & Admin. $888,537.00 $1,184,024.00 $295,487.00 $1,232,613.00 $1,272,114.00
Corporate Services $678,447.00 $1,092,246.00 $413,799.00 $1,115,802.00 $1,148,359.00
Emergency Planning $101,072.00 $147,681.00 $46,609.00 $151,437.00 $152,813.00
Fire $1,261,724.00 $1,625,769.00 $364,045.00 $1,393,503.00 $1,418,857.00
Building $637,275.00 $753,431.00 $116,156.00 $762,500.00 $762,500.00
By-Law Enforcement $326,646.00 $457,230.00 $130,584.00 $459,607.00 $475,951.00
Pub Works Admin $602,379.00 $592,769.00 -$ 9,610.00 $618,457.00 $635,888.00
Roads $2,473,207.00 $3,358,168.00 $884,961.00 $3,446,012.00 $3,516,443.00
Fleet Mtce. $537,151.00 $800,464.00 $263,313.00 $865,767.00 $854,884.00
Huronia Airport $41,352.00 $41,429.00 $77.00 $42,496.00 $43,235.00
Env. Stewardship $395,094.00 $430,689.00 $35,595.00 $438,850.00 $438,850.00
Water $3,158,803.00 $3,162,686.00 $3,883.00 $3,258,632.00 $3,258,751.00
Parks Maintenance $1,001,490.00 $1,167,638.00 $166,148.00 $1,392,296.00 $1,417,347.00
Totals $12,533,355.00 $15,411,686.00 $2,878,331.00 $15,775,418.00 $16,005,695.00
Based on the numbers presented, $2,878,331 is budgeted to be spent in the last two months.
2025 CAPITAL BUDGET OVERVIEW
New for 2025 is the introduction of a 5-year capital plan with staff including what they consider to be the most urgent projects in the 2025 Draft Capital Budget along with recommended funding sources. Several additional projects which staff have identified as high priority but can not be done at the draft proposed tax rate increase, have been placed on the Funding Gap for further consideration. All lower priority projects or projects that can be deferred or are planned in future years are included in the 5-year capital plan but not included in the draft 2025 capital budget.
Capital Funding Sources
For discussion purposes, the overall Gross Capital spending for 2025 is currently budgeted at $18.859m. In 2024 the gross capital budget (not including carry-over projects) was $9.4m representing a 101% increase in new gross project costs in 2025, with construction costs of the new Township of Tiny Administrative Centre (TTAC) as the main contributor to the draft capital budget increase.
After all funding sources proposed are applied to the gross capital budget, the Tax Supported Net 2025 Draft Capital Budget, is $4m.
This is the cost on the tax rate and is 22% of the overall Tax Levy.
There are various sources of funding that the municipality has available for capital projects. Funding presented in the 2025 Draft Capital Budget include anticipated grants, reserves/reserve funds, debt and municipal taxation. Staff have provided recommendations as to what funding sources to apply to each project.
The Ontario Community Infrastructure Fund (OCIF) is the largest source of external revenue provided to the township for core infrastructure. The Township of Tiny’s 2025 allocation has decreased by $155k as compared to the 2024 OCIF funding amount. The total amount of OCIF the township will receive in 2025 is $880k. $790k of which is available for 2025 projects as the remainder is required to fund previous year carryover projects.
The Canada Community Building Fund (CCBF, previously known as ‘Gas Tax’) allocation has not yet been confirmed however an estimate has been provided for 2025 of $425k. Using this estimate and remaining funds from 2024 there is an estimated $574k available for 2025 Capital.
Below is the breakdown of FUNDING SOURCES applied to the 2025 Draft Capital Budget.
Ontario Community Infrastructure Fund Grant (OCIF) $790k
Other Grants (approved/pending) $30k
Canada Community Building Fund (CCBF) Grant $554k
Water Reserve Fund (User Funded) $1,985k
Parkland Trust Reserve $87k
Development Charges Reserve $314k
Infrastructure Reserve $1,652k
Capital Reserve $97k
Climate Action Reserve $9k
Computer Reserve $35k
Debt financing $9,226k
Proceeds of Disposition $8k
Municipal Tax Funded Tax Levy $4,073k
Total Funding Sources $18,860,202
2025 CAPITAL PROJECTS
- Loan financing – $9,226,000
- Computer Systems $14,500 – Computer Reserve
- Records Management System $ 25,000 – Corporate Reserve
- Work Center Copy/Fax/Scan/Print Devices $ 20,208 – Computer Reserve
- Implementation of HRIMS $25,000 – Corporate Reserve
- Corporate Capital Reserves $102,000
- Computer Reserves $10,000
- Infrastructure Reserve ($1.1m moved from Ops) $1,472,008
- Personal Protective Equipment $94,000
- Radio Communications Equipment $35,000
- Respirator Fit Tester $8,500
- Fire Capital Reserves $390,000
- Parking Machines $19,671 – By-law reserve
- By-Law Capital Reserves $27,835
- Replacement Fuel Tanks at PW Yard $30,000
- Road scanning for all paved roads – $80,000
- Shoreline Resilience Study $ 20,000
- 2025 Public Works Capital Contingency $43,500
- RT38 1/2 ton to replace RT61 – Fully electric $70,000
- Tandem axle plows (RT39, RT40, RT41) $637,500
- 3/4 ton to replace R100 or RT36 $70,000
- Backhoe to replace current unit $230,000
- Slip in water tank $55,000
- Park Road – Culver to 207 $162,500
- Paving Farlain Lake Road East $397,500
- Repave Oneida, Breithaupt, Wakunda $332,500
- Repaving Concession 15W from TBRN to Wolfe trail $67,500
- Repaving S. Oliver Drive (TBRN to Sherwood) replace Culvert TBRN $592,000
- Repaving Silver Birch phase 3 – #200 to Chemin du Loup $345,000
- TBRN from Concession 12 to 13 with paved shoulders $312,500
- Angela Schmidt Road/Marshall Road Reconstruction $43,000
- Micro surface Desroches Trail, Macedonia, and Concession 15W $ 110,500
- Micro surface Rue de Lac, Delbrooke Court, Cranbrooke Court, Huronia Court, Nottawasaga Court, Cape Cod Court, Rue de Parc, and Nassau Court $65,000
- Micro surfacing on Robb’s Road $13,000
- Single Surface Treatment on Skylark $50,250
- Single Surface Treatment on Concession 17W. $67,000
- Rehabilitation of Bridge R6002 $350,000
- Withall Dam – Phase 2 (dam) $500,000
- Turnaround for the end of Tucson $60,000
- Public Works Yard – Concrete block walls $15,000
- Chlorinator Analyzer replacements $40,000
- Electrical Assessments – all stations $25,000
- Piping Upgrades – 4 stations $50,000
- Verification of Culverts, Well Piping / Condition Assessments / Replacements $100,000
- Georgian Bay Estates/Sawlog Bay EA and Watermain Replacement $1,320,000
- Lafontaine Water Meters $450,000
- New Well for the Balm Beach Washroom and interior renovation $ 80,000
- Lafontaine Pavilion – Washroom Ventilation $8,000
- Cargo Van to replace P205 – Fully Electric $70,000
- Landscape Trailer $16,000
- Mower to replace JM05 $95,000
- Toanche Pavilion Extra Funds Reserve $100,000
- PRAC Master Plan Implementation $30,000
- Concession 5 Beach Access $40,000
- Delineation Phase 5 $40,000
- Section of Limestone on Trails $40,000 – $30k Grant from County
- Replace Stairway at Edmore Beach $5,000
- Concession 14 and 15 Beach Access Improvements $20,000
- Rec Master Plan (PRAC) – Master plan for Lafontaine Park $15,000
DRAFT 2025 RESERVE FUNDS OVERVIEW SUMMARY
There are many 2024 invoices that have not yet been received that may impact the closing 2024 balances to the Discretionary Reserves, Reserve Funds and Obligatory Reserve Funds.
In addition the 2025 transfer to Capital Reserve balances on the Reserve schedule will not tie directly to the Capital Summary schedule as the Reserve Schedule includes reserves required for 2024 projects, that will be completed in 2025.
Discretionary Reserves
The Discretionary Reserves are specific reserve funds that have been established at the discretion of Council to finance future expenditures, relative to the specific reserve account. However, Council does have the discretion to reallocate as needed.
The 2025 draft total budgeted discretionary reserves show an overall increase of $86.7k from an estimated 2024 closing balance of $2.98m to $3.07k at the end of 2025. The 2023 audited closing balance of discretionary reserves was $3.30m, indicating there is an estimated $233k decrease in discretionary reserves expected throughout 2024 and in the 2025 draft budget; most of which relates to the decrease in Capital and Infrastructure reserves for pre-planned use in 2024 and 2025.
Staff are proposing to utilize $89.7k from the Capital Reserve balance towards Capital asset investments in 2025; Of this amount,
$55.1k is allocated from Corporate Capital Reserves, and $34.7k from the By-law capital reserves. Note, the schedule shows a transfer of $469k from the Fire Capital Reserve however that relates to an already approved 2024 project.
Contributions into discretionary reserves are planned at $2.91m for 2025, of which $1.47m is proposed to be allocated to the Infrastructure Reserve and $595k into the Capital Reserve. Transfers from discretionary reserves to Operations are estimated to be $329k and transfers to the 2025 proposed Capital projects are projected to be $1.79m. The total transferred the Capital Reserve in 2025 is $2.5m, which includes the 2025 proposed projects as well as $704k to complete 2024 projects.
The Computer Replacement Reserve is projected to have a balance of $26.2k at the end of 2025. $34.7k of funding is proposed to be utilized for capital projects in 2025.
In 2024, an Arena Reserve was established at the same level as the amounts paid in earlier years to the three partner arenas. A continuation of this budgeted amount for 2025 is added in the amount of $56.5k. At the end of 2025, this reserve is projected to be $113.0k
To ensure STR program is self-funding and not supported by the general tax levy year-to-year a Short-term Rental (STR) Reserve was established in 2023. At the end of 2025, it is forecasted that the reserve will be in a deficit of $57.6k.
At the end of 2025, the Election Reserve is expected to have a balance of $100k in preparation for the 2026 elections with an additional $29k transferred into it in 2025.
The Accessibility Reserve is projected to have a balance at the end of 2024 of $48.3k, and $40.8k at the end of 2025.
Further, a Golf Tournament Surplus Donation Reserve account was established, for any net proceeds or late invoices following the completion of the tournament to be dedicated to and utilized in future years. In 2025, $1.4k is estimated to be transferred to this reserve.
In 2025, a Debt Financing Reserve is proposed to be established to accumulate funds related to the financing costs of the new Township of Tiny Administration Centre. A transfer from Operations of $650k into the reserve for 2025 has been earmarked. Further, dependent on start date and financing arrangements, a $250k transfer to Operating is currently budgeted to fund anticipated interest costs on the financing, leaving $400k in the reserve at the end of 2025. It’s anticipated that annually the reserve transfer contributions into the reserve will accumulate until enough funds from the tax levy cover the annual costs of the financing.
Restricted Reserve Funds (Water)
The water flat rate and metered fees collected from users of the townships water system fund all operating expenditures and capital projects.
It is anticipated that the water reserve, after funding 2024 water operating and capital costs will have an ending 2024 balance of $4.62m. In 2025, it is further estimated that if the water operations and capital projects are approved, the ending balance in the water reserve at the end of 2025 is projected to be $3.69m. Overall, the township’s water reserve is forecasted to decrease by $938k, or 20.3%, in 2025.
Obligatory Reserves
Obligatory reserve funds refer to reserve funds that are required by legislation to be segregated from other municipal revenues. The townships obligatory reserves include Canada Community Building Fund (CCBF) Reserve (formally known as ‘Gas Tax’), Building Reserve, Development Charges Reserve, and Parkland Reserve.
Canada Community Building Fund (CCBF) Reserve
Tiny has received an estimated yearly allocation schedule for CCBF funding for the next four years. With regards to the 2025 CCBF allotment, staff have included this estimate of $424,638 in the forecast. As the 2024 ending balance is projected to be $179k, staff are proposing to utilize $554k towards 2025 capital projects and $51k towards completing 2024 projects. This will leave a projected ending balance of $9.0k at the end of 2025.
The Building Reserve is estimated to be $2.43m at the end of 2025, which is $80.1k lower than the projected 2024 ending balance of 2.51m. This stems from the estimated $156k required for building operations in 2025. The Council approval recommendation #146 in 2021 and subsequent council report PD-009-23 state that there should be 2x of Building operating costs in reserves. The reserve is 2.65x the 2025 draft operating costs, and therefore complies to council’s approved recommendation.
The Development Charges (DC) Reserve Fund is funded by Municipal Development Charges (DC) for improved properties. The funds proposed to be utilized towards capital projects related to growth and are part of the township’s development charge study created in 2019. Receipts of DCs have changed significantly over the past few years (2020: $306.4k, 2021: $823.9k, 2022: $526.6k, 2023: $463.5k, 2024 (YTD): $309.8k), thus there have been large swings in the DC reserve account. The estimated 2024 closing balance is $180k. An estimate of $300k of DC revenue is forecasted in 2025. Further, it is recommended that $45.0k be allocated to fund DC applicable studies in Planning operations, which includes $30k for an updated DC Study. As well, $314k is proposed to be allocated towards 2025 capital projects related to growth. The estimated closing balance in 2025 of the DC reserves is $131k, which is an approximate $48.6k decrease from the estimated 2024 closing balance. A new DC Study is being undertaken in 2025 to update the DC rates for the Municipality.
The Parkland Reserve Fund is mainly funded by subdivision agreements and as there has been very little subdivision agreements activity over the past several years, a modest $20.0k increase is forecasted for 2025. In 2021, the Sale of Surplus Land Project generated significant funding for the Parkland Reserves. In 2025 staff recommend that $86.5k be utilized towards 2025 capital projects, $151k towards completing 2024 projects and $20.0k toward operational activities. This will leave a projected balance in the Parkland Reserve of $52.5k at the end of 2025.
2025 ADDITIONAL PROPOSALS for COUNCIL to CONSIDER (Funding Gap Proposal List)
Staff have identified a number of projects for Council consideration that are not included in the 2025 Draft Budget. These items also include requests that have come in after the draft budget was finalized or items that have been added as the Budget discussions took place.
Funding Gap
- OMERs for FIRE and employment costs (Report) Costs TBD
This was deferred to next year based on the need for further costing information. This was discussed in confidence with few details available. However, it appears that this is a proposal for volunteer firefighters to be included in the OMERS pension as well as service awards. Councillor Walma voiced that there was no conflict of interest even though he is a volunteer firefighter.
- Staff 3 Adjustments and Corrections to draft budget (RT06 $5,265, RT08 $4,765) $10,030
- Adjusted WSIB and CPP rates/ceilings as of Nov 18, 2024 – legislated $13,445
- COLA (1.5% proposed) (Gross $125k, net tax impact $100k) EDCNS – increase in funding request over 2024 levels $13,145
Deputy Mayor Miskimins felt that he was more comfortable at 1.25% which would be more appropriate given budget pressures. Councillor Walma was more in favour with staying at 1.5% as was the mayor. Councillor Helowka was good either way and voted with the 1.5%.
- Firefighting Water Supplies Report – Thunder Bay Upgrade $75 K.
- Portable Pumps $15 K.
- PPV Fan $7.5 K
- Purchase – 1/2-ton Pick-up Truck to replace Utility 3 $75K. Funded by Capital Reserve
- Backup Generator $20 K.
- Paving Old Schoolhouse Road and Baseline Road North $137 K.
- Study – Opening Peek-a-boo to Coutenac and Bush Road $60 K.
- Wyevale Crosswalk Repainting $45 K.
- Hot Mix Patching Program $140 K.
- Well Replacements $300 K. funded by Water Reserve
- Maintenance Activities at Water Pumphouse Facilities $20K.
- Lafontaine Environmental Assessment Report $100 K.
- 2025 Compact Pick-Up (To Replace R110) $75 K.
- Yard Hydrants $20 K. (funded by Water Reserve)
- Toanche Dog Park $30 K.
- Wyevale Baseball Diamond Lights $350 K.- Partially funded by $50 K. donations and $175 K. grant – pending approval
- Major Beach and Park Wayfinding $ 70 K.
- Repair to the Welcome to Tiny Signs $ 60 K.
- TTCC Horseshoe Pit Improvements $ 5 K.
- Lafontaine Community Centre – Barrier free ramp reconstruction $ 30 K.
- TA11 Stage Trailer $ 150 K.
- Septic Receiving Upgrades to Midland WWTP $1,238,147 (less grant $903,847) net $334,300. Pending Grant Approval. $ 334 K.
Five Year Capital Program
Of particular note, many highlighted reserves have substantial funds allocated with no tie in to specific assets.
The five-year capital program leaves much to be desired given the number of TBD’s identified.
As an example, under the Lafontaine Beach Master Plan (LAMP) there are projects identified as volleyball court, gateway structure, improved perimeter fencing, rope fence around natural areas and tree planting and gardens. There is also a project identified as Master plan for Lafontaine Park.
The LAMP implementation committee was dissolved in 2019 with the understanding that the projects identified were in the capital program and would be completed. The committee decided that the volleyball court was not conducive to this park and was relaced with bocce courts that were installed. The washrooms identified in the LAMP were finally constructed and opened in 2024.
Funds for the gateway structure, improved perimeter fencing, rope fence around natural areas and tree planting and gardens were in the budget in 2019 but somehow are now TBD. Why a new Master Plan is being considered when the original 2011 LAMP has not been completed is puzzling.
CONCLUSION
Councillor Walma continued to push the need to take on debentures to complete more road projects which would again affect the tax rate. Mayor Evans felt that they had sufficient dedicated to roads without taking on debt.
Councillors discussed what the final number should be and staff were directed to come back with a budget reflecting a 7% municipal rate which would result in a blended tax rate of 4.52%.
A meeting will be held in early January 2025 to finalize the budget.