Amherstburg town council will be starting the 2025 budget process looking to shave down a proposed 5.3 per cent tax increase.
Town council tabled the operating and capital budgets during a special meeting held Monday evening. In a presentation made by chief financial officer (CFO)/treasurer Tracy Prince, “the 2025 budget focuses on the proposed levy to deliver the service level and sustainability desired by council. To fund all the proposals in the 2025 budget, the levy increase would be $2,353,233. Factoring in an increase in assessment growth allows for the presentation of a 5.3 per cent increase in the municipal tax rate.”
Prince said that percentage would translate into a $149.81 increase of the year on a home valued at $250,000, or $2.81 per week.
Water and wastewater rates are also projected to increase by three per cent each.
Work on the budget began as far back as May, she noted, and the senior management team (SMT) went through requests and made their recommendations to town council. The two levies that were created by town council are still part of the town’s budgeting process.
“There are contractual services in there that we do not have control over. They are based on provincial legislation, health and safety regulations and contractual obligations,” said Prince. “Those are police and fire.”
Prince said with MPAC delaying weighted assessment, “it appears our mill rate continues to grow. If that assessment had kept pace, our mill rate would not have had to increase as much because the value of the home would have increased.” CAO Valerie Critchley confirmed MPAC hasn’t increased assessments since 2016 and it will not happen in 2025.
“The increase for 2016-20 was supposed to start implementing in 2020. That was delayed. Had all of that happen the way it was supposed to, we would actually be in our second set of reassessments. We are still at the 2016 assessment,” said Critchley.
Among the new positions being recommended by the SMT for 2025 include a human resources (HR) administrative co-ordinator moving from part-time to full-time with a proposed budget impact of $38,320.44. A permanent part-time recreation co-ordinator would have a budget impact of $30,729, if approved.
Cost constraints identified by Prince include contractual salary obligations - including salaries, benefit cost increases and retiree benefit cost increases of $591,600 (1.85 per cent), an increasing in policing costs of $565,021 (1.77 per cent), dispatch and radios costs rising “substantially” to $226,056 (0.71 per cent), an asset management plan increase of $498,734 (1.6 per cent), new debt of $225,000 (0.7 per cent), an increase to the transit program net of gas tax of $147,000 (0.46 per cent), garbage removal including tipping fees of $49,749, cybersecurity costs of $75,000, bunker gear replacement of $64,000, vehicle and equipment maintenance costs of $50,000 and the aforementioned moving of the HR position to full-time.
The new debt is largely attributed to the construction of the new Amherstburg fire hall, currently underway at the Libro Centre. Prince added some of the costs relating to growth, such as garbage collection and tipping fees as one example, are paid for by growth.
Budget highlights Prince included in her presentation were the maintenance of programs and services, issue papers provided to council for direction proposed service level reductions, lifecycle reserve contributions increased per the asset management plan (AMP) recommendations, OCIF funding budgeted and confirmed at 85 per cent of 2024, utilities and fuel, salary and benefit costs, and the police contracting expenses.
Pressures she identified include the non-residential construction index and legislative changes surrounding asset management, accounting standard changes, availability of infrastructure programs, and federal and provincial budget uncertainty.
Program and service delivery pressures include service levels, preventative maintenance programs, municipal drains, enhancements, maintaining programs, collective bargaining agreements and contractual obligations.
Prince provided a graphic detailing proposed tax rate increases from around the area, with Amherstburg’s 5.3 per cent landing near the middle of those numbers that are definitively known. The County of Essex has a proposed increase of 6.37 per cent increase with its budget meeting scheduled for Nov. 28.
Deputy CAO/director of development services Melissa Osborne outlined the proposed capital budget, noting the proposed five-year capital budget from 2025-29 being over $63.4 million. Of that, just over $13.8 million has been identified for 2025. The 2025-29 recommendations are balanced against forecasted available reserve funding. She noted the 2026-29 figures are presented for approval in principle and subject to change, except for a fire ladder truck.
That truck is included in the fleet and was approved by town council, she said.
About 41 per cent of funding for the capital budget comes through taxation while 21 per cent comes from user rates, such as water and wastewater rates, Osborne noted. The bulk of the investments in the capital budget – about $4.4 million – is in the town’s road network. The water network costs are the next highest at about $2.77 million.
Osborne said an asset management shortfall amounts to about a 1.6 per cent increase annually.
“Unfortunately, the OCIF funding that we have, we have been advised to project a 15 per cent reduction annually on that until it levels back out to pre-2020 rates,” said Osborne.
Growth in reserves is hindered by a decline in OCIF funding, she added.
“The annual shortfall in funding just to address the assets we’ve added since 2023 is about $491,000, less than we’re putting in annually per year,” said Osborne. “Every time we build a new asset we didn’t have before, there is a financial accountability based on its life that we need to start to understand and to make sure council has the information when you start making your decisions.”
Among the projects proposed in the 2025 capital budget are $160,000 for the annual bridge maintenance program, $1,025,000 for culverts on Concession 6 North and Concession 7 South, $175,000 for the sidewalk replacement program, $2.9 million to reconstruct Concession 8 North from Alma St. to the bridge over River Canard, $965,000 for the mill and pave program, $1.125 million for a watermain and road rehab project on McCurdy Dr., Linden Court and Oak Court, $150,000 for engineering on a Richmond St. sewer project from Fryer St. to States Ave., $313,000 for Lakewood Dr. pumping station enhancements, $80,000 for Big Creek sewage plant upgrades, and $1.328 million for the fleet replacement program.
Among the capital budget items for the parks, facilities, recreation and culture department, there is $100,000 earmarked for Libro Centre arena upgrades, $12,000 in upgrades for the Libro Centre’s premier baseball diamond including backstop removal and moving home plate and the pitchers mound to “accommodate proper base positioning.”
Other proposed capital budget plans call for $65,000 for Gordon House upgrades, $75,000 for HVAC upgrades at town hall, $165,000 for upgrades to the police station roof, $150,000 to further investigate Libro Centre parking lot issues, $100,000 for Pat Thrasher Park improvements, $530,000 for H. Murray Smith Centennial Park improvements such as tennis courts that council has applied for additional government funding for, $150,000 for parking enhancements at parks, $100,000 for Navy Yard Park lighting upgrades, $500,000 for a pump track at the Libro Centre, and $350,000 towards redevelopment at Malden Centre Park.
Councillor Peter Courtney said the proposed 5.3 per cent increase to start was “not terrible” and said council will still seek more cuts.
“My jaw didn’t hit the floor tonight,” said Courtney. “Thank you for that initial projection.”Councillor Molly Allaire offered praise to administration, stating her first look at the budget saw some cuts on the table made by staff.
“That’s really helpful, it’s really impressive,” said Allaire.
Deputy Mayor Chris Gibb, who chaired the meeting in the absence of the vacationing Mayor Michael Prue, noted the real efforts begin now.
“Good luck,” he told his fellow council members. “Now the hard work starts.”
A public open house will be held this Saturday (Nov. 23) at the Libro Centre from 10 a.m.-12 noon. An online survey is open at www.talktheburg.ca until Dec. 2. The audit and finance committee will review the proposed budget Dec. 2 and the budget will be deliberated Dec. 9-11, with public delegations welcome Dec. 9.
The finalized budget is scheduled to be completed and adopted in January 2025.
By Ron Giofu
Town tables 2025 budget, starting off with proposed 5.3% tax increase
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