TIMMINS - The local services board has started it 2025 budget talks.
At the Cochrane District Services Board’s (CDSB) on Nov. 21 meeting, board members were presented with the proposed budget.
It includes an overall increase of 2.31 for operating expenditures and 7.5 per cent for capital, for a total hike of 9.82 per cent, or $2.1 million. Each of the member municipalities in the district, including Timmins, pay into the CDSB. The breakdown of what the increase means for municipalities was not included in the presentation.
The board deferred the final decision on the budget to a future meeting, but it wasn’t specified it will be approved
The budget discussions were centred around managing rising costs, maintaining services, and balancing the needs of municipalities and residents.
Board members are waiting for funding announcements that could impact the final numbers, including potential funding for the Wellness Centre of Excellence/HART Hub project, which is not yet included in the budget.
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“We serve a significant number of clients,” said Angela Delaurier, director of finance.
“We hesitate to suggest dropping any of our services. But maintaining these services requires funding, and that’s the balancing act we have to perform.”
Delaurier said the CDSB reviewed multiple budget scenarios before arriving at the current proposal. She noted that a balance had to be struck between rising costs and the expectations of the municipalities the CDSB serves.
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“So what we then arrived at was including a portion of the new MCCSS (Ministry of Children, Community and Social Services) funding to arrive at an operating expenditure increase between two and three percent which is in line with what the municipalities were expecting,” Delaurier said.
“So that's what we ended up with, and that is the scenario of operating expenditures that we are running with for both draft one and draft two.”
A major source of financial pressure is the housing portfolio, which includes numerous aging buildings in need of significant repairs.
Lindsay Cumming, director of housing, detailed the difficulties of maintaining social housing across the district, especially as CDSB prepares to receive its final round of federal funding for housing administration in 2026.
“The burden has fallen on the municipalities to administer and maintain social housing units,” Cumming said. “We can argue the fairness of it, but unfortunately, we are not alone in the province in this. At the time, maybe it was a good idea. Buildings were fairly new and there was funding still attached.”
Those buildings, some of which were constructed as early as 1962, are now approaching the end of their useful life, Cumming said. She emphasized the urgency of addressing repairs before the cost of maintaining these units becomes unsustainable.
She used the 16-unit Winnipeg Street project in Kapuskasing as an example.
“Winnipeg project alone is projecting $876,000 in the next five years in repairs needed, mechanical, electrical, fire alarm systems. It would take 828 years to save if we base it on the $1,000 per unit per year, which we know is not realistic or feasible. But it's going to reach a critical point that if an increased investment is going, units won't be habitable and will need to be closed down," she said.
The 24 senior housing units in Smooth Rock Falls need a projected $585,000 in repairs over the next five years, Cumming said.
“Cracks in the centre blocks, HVAC, baseboards, heaters, sprinkler systems. What happens to Smooth Rock Falls if we can't keep these buildings in good repair? That's the only housing that Smooth Rock Falls has," she said.
The CDSB’s budget faces increased costs in virtually every department.
While some services, such as children's services, are seeing slight reductions in expenditure, overall costs are rising due to inflation, higher labour and construction material costs and the reduction in federal funding, Delaurier said.
She pointed out that interest rates, while beneficial for mortgages, are negatively affecting interest revenue.
“We’re expecting a reduction in federal funding and in interest revenue that's due to the interest rates that are decreasing, as we can see,” Delaurier said. “So good for our mortgages, not good for our interest revenue.”
As a result of these pressures, the CDSB revised its capital request for 2025.
Originally, the board had requested a 132 per cent increase in capital funding to address urgent building repairs. However, after discussions with the audit and housing committees, this request was reduced to a 49 per cent increase, with some external projects deferred.
“We reduced it to a 49 percent increase,” Delaurier said. “We did that by removing all external work, so any outdoor work, and we did remove a couple of other capital items.”
Despite the reductions, Delaurier emphasized that repairs are still necessary to maintain the safety and habitability of the CDSB’s housing stock.
While the budget proposal aims to balance expenditures, it also acknowledges that delaying essential repairs poses a significant risk, Cumming said.
“Small issues like cracks and curving or fencing can escalate into larger structural problems and more expensive repairs. Neglected maintenance can also increase the likelihood of accidents or injuries,” she said.
“So in the drafts, from option one down to the last option, we've reduced anything external fencing, parking lots, and curbs. They're not necessary if you're looking in view of having a home to house someone, but there is liability and risk that's associated with those items as well, and the further we push them off, the more likelihood that it's going to increase the cost down the road.”
Cumming also pointed out that the limited funding available for repairs, combined with the aging housing stock, means that the CDSB will need to request more funding from municipalities to prevent further deterioration.
“Unfortunately, the cost of construction materials and labour has surged since the COVID-19 pandemic,” she said.
“These combined factors make it necessary to request more funding to cover the heightened expenses involved in keeping the facilities in good condition, ensuring that they are there to serve the community effectively.”
