Talks on Barrie’s 2022 operating and capital budget Monday night appear to be heading in one direction: down.
“We still have percentage points to cut,” said Coun. Sergio Morales, chairman of the city’s finance and corporate services committee. “It’s still early in the process to say it’ll come out of one budget line or another.
"It’ll likely be (from) multiple sources," he added.
As budget talks begin, homeowners are facing a 3.67 per cent property tax increase next year. On a typical city home assessed at $362,740, this is a hike of $164 — bringing property taxes on that house to $4,644 in the coming year.
Coun. Jim Harris noted a 3.67 per cent increase is just where the budget process begins.
“As always, this is the starting point, which represents the cost for continuing to offer services at the current expected level, and keeping pace with our commitments to the maintenance and renewal of City of Barrie assets and infrastructure,” he said. “Council and staff will be working together over the next few weeks to see where there are opportunities to reduce spending.”
The 3.67 per cent increase is a blended number, for municipal and education taxes, and includes the 0.75 per cent dedicated infrastructure renewal funding, which is used to replace and renew Barrie’s roads, pipes and buildings, and worth $2.2 million next year.
Once approved by general committee next week, the budget is scheduled to pass at the Dec. 6 city council meeting.
The budget also includes increases to water and wastewater (sewer) rates next year — 2.4 per cent or $8.75 more for water, an additional 3.03 per cent or $15.61 for sewer, for a typical household that consumes 180 cubic metres of water annually.
So the yearly cost of Barrie’s water and sewer services in 2022, on this typical household, are estimated at $374 and $531 respectively, for a combined cost of $905. This is $24.36 or 2.77 per cent more for both services compared to 2021 levels.
The 2022 tax-supported base operating budget for Barrie’s municipal operations has gross expenditures of $393 million and a net property tax levy requirement of $267.0 million or a $12.7 million increase compared to 2021.
This includes $58.9 million for the Barrie Police Service (BPS) next year, $25.05 million for the County of Simcoe — which provides social housing, ambulance services, Ontario Works, etc. — and $9.2 million for the Barrie Public Library.
The 2022 capital budget totals $342.4 million, including $141 million in previously approved funding, $201.1 million in new funding requests and $332,000 associated with new investment and service recommendation operating budget requests.
Council’s approval of new projects in the 2022 capital budget would include the funds required in 2022, 2023, 2024, 2025, and 2026 to conduct the work, totalling $201.1 million.
Helping offset the property tax increase is estimated assessment growth of $3.6 million next year.
