by Sylene Argent, Local Journalism Initiative
Essex Council adopted its 2024 Budget during its deliberation meeting last Wednesday. After a four-and-a-half hour meeting, Council moved to adopt a 5.07% total blended tax increase with estimated County and Education portions included.
On average, that will account for an additional $76 per household for Essex’s portion, or $159 with the estimated County and Education portions included.
The adopted tax increase was slightly lower than the 5.64% increase Administration recommended at the 2024 Budget Walkthrough meeting held on November 28 that introduced Council and the public to the 2024 draft document.
Presented at the Budget Walkthrough meeting was a proposed 2024 Budget with revenues and expenses in both the Capital and Operating Budgets of $70.6M. The Capital Budget was just over $17.5M and the Operating Budget was just over $53M, with additional supplementary growth revenue of just over 2%.
Kate Giurissevich, Director of Corporate Services, said the 2024 Budget showed a decrease in estimated revenues, mainly due to an estimated decrease in construction activity.
The main theme was stabilizing tax increases and necessary staff complements with a focus on the Public Works Department, Giurissevich noted.
Council adopted the 2024 Operating Budget in principle, removing the proposed Public Works Operator position for $93,401.
With the change, in addition to changes made since the Budget Walkthrough meeting beyond Council’s control, the 2024 Operating Budget came in at $53M, with around $18.4M from taxation revenue and around $34.6M from all other revenue, such as from reserves or grants.
Councillor Katie McGuire-Blais asked why there was a $794k increase in salaries, benefits, and personal expenses compared to the previous year. Giurissevich said that includes part-time benefit changes and adjustments due to union and non-union increases. It also includes a full-year of the Landscape Operator and Assistant Manager of Capital Works that was approved in 2023, in addition to the proposed tax-supported Public Works Operator and rate-supported Water Operator proposed in 2024.
Annually, salaries account for over 25% of the Town’s Operating Budget expenditures. Total Proposed 2024 Salaries, Wages, Benefits, and Personnel Budget is $13,863,332, a $ 794,437 increase from last year.
The second proposed position in the 2024 Budget was for a Water Operator for $99,625. It was noted previously Essex is short a Water Operator for the size of the municipality. This is user-rate supported.
McGuire-Blais was not sure she was in approval of two new employees for the Town. In addition to the wage for the Public Works Operator, the position holder would get a snow plow.
Director of Infrastructure, Kevin Girard, noted the removal of the Public Works Operator would result in a decrease in the Budget, it would also result in a decreased level of service. The Town has grown a lot in the past 24-years, which is the last-time additions have been made to that department. Three Public Works Operators were requested originally, and one made the Budget proposal.
Council approved McGuire-Blais’s motion to cut the proposed Public Works Operator from the 2024 Budget, but keep the Water Operator position. The removed position could be revisited mid-year or in 2025.
This reduced the 2024 Budget by a half of a percent.
Highlighted changes in the 2024 Budget since the Walkthrough meeting included the Ontario Community Infrastructure Fund (OCIF) grant coming in with a decrease at over 15%, a reduction of $238,160. Giurissevich said all local lower-tier municipalities experienced a decline this year around the same percentage.
This OCIF funding was being applied to the previously approved Irwin Avenue reconstruction project for $4.3M. Town staff, Giurissevich said, had the strategy that should OCIF funding come in lower than expected that the Town would fund through the Asset Management Plan (AMP), which had sufficient funds to cover the reduction.
The Town was successful in receiving a $100,000 accessibility grant for the recently constructed Stanton Park. That money will go back into AMP, as that is where the funding came from. That reduced the impact in the reduction of the OCIF.
She added it is estimated Union Water will forward around $25,000 annually to the Town as part of the administration fee for doing the billing services. This was to be finalized through its own budget. That would be a direct transfer to reserve.
In addition, the Town received $68,113 through the Ontario Nuclear Emergency Management Grant, which was just over $18,000 more than anticipated. This funding will go towards a generator for the Essex Centre Sports Complex. This increased amount will decrease the amount of funding needed from the General Contingency Reserve for the generator.
Council adopted the 2024 Capital Budget in principle, with around $17M in expenses.
Council removed IT’s request for virtual meeting room software of $15,000 from taxation, reduced the Essex Sports Park amenities from $150,000 to $100,000 from a combination of Development Charge Reserve and taxation, reduced the Colchester parking project from $50,000 to $15,000 with funding coming from AMP and taxation for signage and not move forward with paid parking in lots A-D for the time being, removed additional swings at Stanton Park for $50,000, and the additional snow plow for $330,000 was also removed.
In addition, the remaining funds of $8761 from the 2023 Council Contingency Fund were re-allocated for a sun shade sail for the McGregor playground, which Councillor Kim Verbeek said is needed and should have been installed when the playground was added. How to fund the outstanding funds for the $20,000 item will be looked at throughout the year.
Projects included for 2024 year include Irwin Avenue reconstruction – which Council previously approved pre-budget to get an early start on the tendering, continuation of Ridge Road rehabilitation, $160,000 for replacement of Dock C at the Harbour, and a $400,000 playground at Co-An Park, utilizing $200,000 from Essex’s Co-An Park Reserve with Amherstburg to match.
Council passed several road related projects, including, $1.27M for yearly maintenance overlay on select roads with surface course asphalt, $1.05M for the rehabilitation of the Ridge Road from Huffman Road to County Road 50 from the CCFB, and $450,000 for yearly maintenance overlay on select rural tar & chip roads.
Another item included in the Budget was for a truck in the Water Department. An additional position was approved, now another pick-up truck is needed. Girard noted Capital Works and Asset Management had a surplus truck, where a light-sized vehicle could be used.
A business case was made to transfer the truck into the Water Department, which would pay their portion of around $28,900. Staff noticed they could obtain a lighter-duty electric vehicle for Capital Works and Asset Management for around $70,000. This would have a net impact on the budget for just over $41,000.
Girard said this is also being looked at as a pilot project to try out an electric vehicle, while also benefiting the Capital Works and Asset Management and Water Departments.
Council also approved carry-over projects from 2023 previously approved, so long as they do not exceed what was budgeted.
Since the Walkthrough meeting, Giurissevich said several Councillors expressed concern regarding the drastic drop in reserves, estimated at the end of 2024. She presented a forecast to Council last Wednesday. With an estimated 60% project completion – realistic compared to prior years – would highlight the reserves around $68M. The previously presented $57M in Town reserves, she said, was a harsh number, given it didn’t include all of the replenishments to reserves, like interest income.
Giurissevich added Council is spending reserves and does need to be cognisant of how those dollars are spent. She reiterated that Council adopted a Reserve Management Plan earlier this year to direct responsible management of the Town’s reserves.
Compared to neighbouring communities, Essex is in the middle when it comes to looking at total numbers in reserves and dividing that by the number of households. That is a good place to be, she said, noting there has to be a happy-medium.