Coun. Sergio Morales has nothing in mind for Barrie taxpayers next year.
As chairman of the finance and corporate services committee, Morales says he will push city staff and his fellow councillors to arrive at no property tax increase in 2021.
“I want to be clear: this is a lofty goal and it will take a lot of work of this council working together with one another to come close,” he said. “I strongly believe it is the right thing to strive for, to show our residents we are in touch with their struggle, our collective struggle, during these times.”
Morales said that after talking with staff, a combination of federal/provincial money, lower operating costs while on pandemic shutdown, using any 2020 property tax surplus against the 2021 property tax rate increase, and using dividends the city gets for its stake in Alectra could do the trick.
“We might get there in a once-only responsible, sustainable manner,” he said.
Deputy Mayor Barry Ward is also a member of the finance and corporate services committee.
“It should always be council’s goal to bring in a tax increase as low as possible without cutting essential services, so there is nothing wrong with aiming for zero per cent, especially when people and businesses have been hit so hard by the pandemic,” he said.
“It will be extremely difficult to achieve since we already know we are going to be asked for an increase from some of our major service partners, such as the police and Simcoe County," Ward added. "That accounts for more than one-third of the city’s portion of your tax bill and we, as councillors, have very little control over it.”
The 2020 property tax increase was 2.96 per cent, or 1.96 per cent to deliver city services, and those provided by service partners (policing, paramedics, social housing) plus a one per cent increase for the dedicated infrastructure renewal fund, used to replace and renew Barrie’s roads, pipes and buildings.
“The ultimate goal would be to hit zero per cent, and subsidize the one per cent from the Alectra reserve, in order to not negatively impact us fixing roads,” Morales said. “I’m personally prepared to cut services to get there, but only those services that make sense to cut, scale back, or delay during a pandemic response.”
The Ward 9 councillor noted that some cities and counties are getting to zero property tax increases for 2021, or close to it.
He noted zero tax increases in the past have meant “instant gratification in the now while pushing the bill down the road, often at the cost of a higher bill.”
The last time Barrie had no property tax increase was in the 1990s when Janice Laking was mayor. That move was blamed for poor roads and other infrastructure deficits for many years.
“Recent councils have also instituted a one per cent infrastructure levy to help us catch up on such things as street paving. I think that is spending which has been welcomed by Barrie residents,” Ward said.
“So getting to zero per cent without cutting services will be very difficult, even with the much-welcomed federal and provincial money," he added. "I guess we’ll see how realistic it is when we the city budget lands on our desks in a couple of weeks.”
In October, the city was facing a $2-million deficit by year’s end, although that could be offset by Safe Restart Agreement funding, federal/provincial money to help municipalities pay pandemic-related costs.
In its first phase, the city’s allocation was $6.6 million in municipal funding, plus an additional $2.6 million in transit funding, for a total Phase 1 allocation of almost $9.2 million.
The province expects the city to place any excess funding, not needed in 2020, into reserves to be accessed to support COVID-19 operating costs and pressures that may occur next year.
The city has also applied for Phase 2 funding.
Craig Millar, Barrie’s finance director, has also noted the city is facing a $1-million parking deficit this year and the County of Simcoe is going to require anywhere from $600,000 to $1 million more to cover its additional long-term care costs.
Barrie city police are asking for a 2.65 per cent increase to their 2021 budget, or $391,458 more than this year’s budget.
This would make the police municipal funding request almost $57.3 million in 2021. Policing is typically around 20 per cent of the city’s operating budget.
Barrie councillors will debate the 2021 operating and capital budget in January; it sets property taxes and service levels.
City council is scheduled pass its 2021 budget on Jan. 25.
Morales is also asking Barrie residents to tell the city how COVID-19 has affected their finances and what a zero per cent property tax increase would mean to them and their family. Messages can be e-mailed to [email protected].
