Times are about to get a little tighter for Barrie homeowners.
City councillors approved a 2.92 per cent property tax increase Monday night, along with the 2022 operating and capital budget, which also sets service levels.
On a typical city home assessed at $362,740, this would be an increase of almost $131 — bringing property taxes on that house to $4,611 in the coming year.
“Property tax, whether you pay it in rent or you pay it as a property owner, is part of the cost of living,” Mayor Jeff Lehman said. “The more we’re able to moderate that, and keep it below inflation, the better.”
But he also noted that 2.92 per cent is just below the rate of inflation.
“There’s always risk when the city passes a tax increase that’s below the rate of inflation. That means we’re literally not keeping up with the costs affecting the city,” Lehman said.
As budget talks began Monday, homeowners were facing a 3.67 per cent property tax increase next year — or $164 more on that typical Barrie home, bringing its taxes to $4,644 in 2022.
Coun. Gary Harvey said he didn’t expect the increase to be whittled down to 2.92 per cent.
“I didn’t think we were going to get anywhere close to this,” he said. “I came in tonight anticipating we were going to be somewhere that I wasn’t going to support. Who knows what other magic might occur over the next seven days before council next week.”
City council will consider final approval of the 2022 operating and capital budget at its Dec. 6 meeting.
The 2.92 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. One per cent equals about $2.8 million in the 2022 budget.
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 largest impact on the budget’s bottom line Monday was offsetting the tax increase with $1.1 million worth of Safe Restart money, federal/provincial funding to help municipalities pay for pandemic-related costs.
Lehman said it was a bit of a gamble.
“The bet is either in sufficient carry-over funding from 2021 or that additional funding will be made available to municipalities,” he said.
“I think both are pretty likely, I think the chances of at least one of them is very likely, but there is a risk here — when we assume something that has not yet been approved and won’t be approved until fiscal year-end, we do create an exposure.
“We’ve already made application to carry over this amount and that’s where the number of $1.1 million came from. That would have to be denied by the province for this not to be made available.”
Coun. Sergio Morales, chairman of the city finance and corporate services committee, said he likes the city’s chances.
“It’s not really a bet,” he said. “We’re allocating the intent and the expectation of a grant to keep the tax increase lower, based on good data and good expectations.”
“I don’t love bets, but I think that it’s an educated bet,” said Coun. Natalie Harris.
Also helping offset the property tax increase is estimated assessment growth of $3.6 million next year.
Potential service level improvements in the 2022 budget include reopening Georgian Theatre for $214,500.
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 $268.1 million.
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.
“I think the issue of fixing more of what we’ve got and making sure we’re conducting proper asset management… the 2022 capital plan was another step toward that on a long road” Lehman said. “It’s always a difficult balance. I think the choices that were made were reasonable under the circumstances.”
At a special general committee meeting Nov. 20, councillors identified an estimated $252 million in capital spending that could be postponed until after 2031.
Barrie’s total forecasted debt will reach $366 million next year, $397 million in 2023, $427 million in 2024 and $451 million in 2025, then drop to $410 million in 2026.
The budget includes $58.9 million for Barrie Police Service next year, or a 2.88 per cent increase from 2021.
The 2022 police budget actually totals almost $59.8 million — minus almost $5.65 million in grants, secondments and recoveries, then plus a transfer of almost $3.9 million to capital reserves, $220,000 for a radio system upgrade and legislative impacts of nearly $3.2 million.
Legislative impacts refer to supporting Ontario’s First Responders Act and Workplace Safety and Insurance Board (WSIB) reserve at just more than $2.8 million, and $371, 371 for the next generation 911 system.
The salaries and benefits portion the 2022 police operating budget totals $53 million, of which 76 per cent is salaries, 23 per cent is benefits and the last one per cent overtime.
Its staffing plan calls for 123 civilians and 250 officers next year, but the 2022 BPS budget totals 121 civilians and 245 officers.
Barrie police calls for service are roughly 20 per cent criminal and 80 per cent non-criminal, 60 per cent non-emergency and 40 per cent emergency.
Staffing is one place Barrie police has held the line in 2022.
The County of Simcoe provides a number of services to Barrie, such as paramedics, health and emergency services, Ontario Works, children’s services, social housing and long-term care homes.
Barrie’s share of these operating and capital services is projected to be $25.05 next year.
The library board has determined city funding of $9.2 million is required to maintain adequate and effective library service in 2022; this is $180,639 or 2.03 per cent more than the approved 2021 municipal grant, for a total budget of almost $9.96 million next year.
This includes a new Holly branch, to open in the spring.
So far in 2021, 4,100 new members have been added to Barrie Public Library’s more than 35,000 members actively using its downtown and Painswick branches.
Barrie Fire and Emergency Services has a 2022 operating/capital budget of just more than $29.1 million, a net increase of 1.93 per cent or $531,533. Gross expenses have increased by $1.34 million, or 4.84 per cent, but have been partially offset by increased revenues related to the long-term emergency communications contract.
And 96.2 per cent of next year’s Barrie Fire operational budget is salaries and benefits.
Capital expenses including replacing firefighters’ bunker gear, for interior firefighting, for $320,000, the temporary expansion of the fire training facility for $495,000 ($440,000 previously approved), Hazmat detection equipment replacement for $80,000, with half of that previously approved, and $20,000 for mobile response technology replacement.
And there’s $35,000 in 2022 to replace the Barrie Fire portable and mobile radio equipment that has reached end-of-life. There’s also $210,000 for the same expense in each of the following three years.
All funding comes from the tax capital reserve.
Barrie’s 2021 property tax increase was 0.92 per cent — 0.67 per cent for city services and service partners, including police, libraries and Simcoe County services like social housing and land ambulances — and 0.25 per cent was for the dedicated infrastructure renewal fund, or DIRF.
