Putting together a municipal budget during hyperinflation and trying to maintain aging infrastructure has been challenging, says Timmins' director of finance.
This week, Timmins council approved a three per cent net levy increase for 2024.
The increase is down from the 3.5 per cent increase first pitched to council due to $260,000 being transferred from reserves. Since the first budget meeting, $25,000 has also been added to the Community Safety and Well-Being Plan to address intimate partner violence.
The net budget that impacts taxes residents pay is $47.1 million, which is $1.3 million more than 2023. It's not known what the impact will be on tax bills. While other municipalities provide that information during the budget process, Timmins only provides it later in the year once the education rates are set and the budgets from agencies, boards and commissions (ABCs) that also may impact taxes are approved.
"Preparing a balanced budget during a period of hyperinflation when costs have increased across all departments, in addition to being tasked with maintaining aging infrastructure, is challenging. City council worked diligently with administration and staff to deliver a budget that works for today and plans ahead for tomorrow," said Natalie Moore, director of finance, in a news release.
The budget increase is in addition to the rising water and sewer rates.
The 2024 water and wastewater rates were approved last month. This year, the average five-room household will pay an extra $59 — $24 for water and $35 for wastewater.
The two votes against it were from councillors Lorne Feldman and Cory Robin.
Feldman opposed the increase after being contacted by residents concerned about the "consistent and constant increases" in property taxes, water and sewer rates and user fees.
He said the city needs to find ways to bring relief to residents.
"If we want to retain them, if we want to continue to attract people they are going to ask what is the cost of living? Why are the taxes as high as they are? And it makes me wonder why they continue to increase when we live in a region that is probably one of the wealthiest in the world with our resources. Yet it doesn't seem like our residents are receiving the benefit of those resources," said Feldman.
Feldman said he constantly hears about Timmins having what the world needs.
"The problem is the world doesn't want to pay our residents for it. And I think that is just completely inequitable," he said.
Knowing that the three per cent is only the municipal portion of the increase and that the ABCs will add to it, Robin said he can't sleep at night with a three per cent increase.
"I think there's an opportunity for us to do something difficult and that's to say three per cent is too much. This budget is too high. And it's time for we, as a city, to relook at the services and staffing and everything else that we provide to see if we're providing the services required for all of our residents," said Robin.
"Simply because if you look at our population over the last 10 years it's been shrinking and our taxes are going up every year."
Coun. Bill Gvozdanovic said he's made a lot of calls about the budget.
"When you talk about sleeping good at night, I'm gonna sleep fine tonight, OK, because I put in the work on the budget," he told members.
While Feldman and Robin feel the budget is too high, there were also no suggestions about how to lower the impact.
"We've had three or four budget meetings and I'll be honest, I could probably count the words that were said at those budget meetings on my fingers. Very little direction, very little feedback given to staff in terms of what to cut. In terms of putting on a show or attempting to look good, there's nothing that looks better than voting against the budget," said Coun. Steve Black.
He and Gvozdanovic talked about items that council had previously approved — such as wage increases and the cost to rebuild the Golden Manor.
"When you look at our three per cent increase, the majority of that is salaries. So you can't vote for the things that increase the budget and then turn around be upset that the budget is increasing," Black said.
If people compare Timmins tax rates to southern Ontario municipalities, Black noted that the population in those areas is growing.
"Timmins is not growing. It hasn't grown since I moved here. And that's a challenge for us," he said.
"When it comes to revenue sharing from resource industries and the allocation that goes to the municipal level, that's a conversation we can have. But I don't think we cannot approve a budget, that we supported all the items that go into that budget, because we're mad that the province of Ontario doesn't have what we would consider an effective revenue-sharing agreement with municipalities. I would say the Indigenous communities across our country have done an excellent job lobbying on their rights to revenue sharing and community revenue share."
Before voting on the document, Mayor Michelle Boileau made it clear that she supported it.
She noted that there was an enhanced budget engagement process this year.
"We heard from residents. We heard that the cost of living is becoming ... an increasing challenge for a lot of residents but we also heard that residents want to see continued investment in infrastructure and improving infrastructure and enhancing the quality of life here and enhancing safety and well-being in the community. These are all things that we are being asked for and being asked to ensure care in the community as well," she said.
What the budget includes
Some of the more notable capital projects in the budget are:
- $48.9 million for projected construction costs related to the Golden Manor redevelopment, which is being offset with financing
- $5.6 million for the Hoyle bridge construction and contract admin work, offset with reserve and funding
- $2 million to repair the piers and retaining wall at the Mattagami boat launch
- $1.8 million transfer to reserve for the Golden Manor redevelopment
- $1.3 million for renovations at the Pine Street public works yard building
- $900,000 for a rescue unit, offset with reserve funding
- $858,442 for various upgrades at the pool (the projects are for storm sewer and asphalt repairs, structural floor decking repairs, south wall repairs, installing new louvres and ventilation control system)
- $800,000 for hydro and storm upgrades on St. Jean, where the city's industrial park is
- $750,000 for a fire department tanker, offset with reserve funding
- $400,000 for a removable glass and ice rink floor cover at the McIntyre arena and Sportsplex
- $350,000 for soil management facility development
- $265,000 for storm sewer and asphalt repair at the pool
- $225,000 for the Terry Fox trail and parking area near the tennis courts
- $216,109 for the structural floor decking repairs at the pool
- $200,000 for council chamber renovations (which are mostly for IT improvements to allow for hybrid meetings)
- $200,000 to replace the roof at city hall
The big ticket items in the road budget are:
- $7.7 million for Connecting Link work, offset with funding
- $2.1 million for grind and pave work
- $2 million for Connecting Link work at the Porcupine bridge, offset with funding
- $1.5 million for Connecting Link work at the Mattagami bridge, offset with funding
- $320,000 Connecting Link admin contract with Aecom
- $315,000 for surface treatment, offset with reserves
- $165,000 for design costs of future phases of the Connecting Link
- $150,000 for roads need study
- $150,000 for an audit and assessment of traffic safety
- $132,613 for Geotech roads program
The transit budget includes buying two conventional buses for $1.4 million, $121,000 for a para transit bus, $150,000 for cold storage, $225,000 for drive barriers, $1.7 million for Fairbox system software, and $213,000 for two trackless vehicles with snow plows. All of these projects are offset with funding.
