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Councillors pass property tax increase less than 1%

'I think this might be the lowest tax increase in 17 years,' says Thomson; Councillors also OK'd a supportive housing project on Vespra Street
2020-08-18 Barrie City Hall RB
Barrie City Hall. Raymond Bowe/BarrieToday

Barrie’s 2021 property tax increase is easier on the wallet than expected.

City residents face a property tax increase of 0.92 per cent this year, or another $40.45 on a typical house assessed at $367,550, bringing taxes on that property to $4,494.45 this year from $4,454 in 2020.

Barrie councillors gave initial approval early Wednesday to this year’s operating and capital budget; council will consider final approval of the budget at its Jan. 25 meeting.

“I think this might be the lowest tax increase in 17 years,” said Coun. Robert Thomson.

It took two marathon sessions  Monday night, and Tuesday night into Wednesday morning  to get initial approval of the budget.

“Almost 12 hours over two nights, almost 60 amendments, we’re done with the budget,” said Mayor Jeff Lehman.

Budget talks began with homeowners staring at a blended (municipal, education) 3.75 per cent property tax increase this year, or paying another $166 on a typical house assessed at $367,550.

The budget talks also included setting this year’s water and sewer rates. Councillors approved a motion to freeze wastewater rates in 2021, and increase the average water bill by about 2.48 per cent or by $8.83 in a typical home that consumes 180 cubic metres annually. It brings 2021 annual water rates to $364.83 on that typical home, and $507 for sewer, for a total of $872.

As part of the budget, councillors also approved a modular supportive housing project on Vespra Street  the old fire hall property  and added $3 million to the capital budget, which will be funded from debt, with the annual debt servicing costs to be paid from the city’s reinvestment reserve, and the funding to be leveraged to access other funding opportunities.

The $3 million includes $500,00 for soil remediation on the property. Staff will also issue a call for proposals for a service provider to construct and manage the development.

The 2021 budget assumes $4 million in tax assessment growth on Barrie, but the city does not break it down in terms of new residential, commercial and industrial assessment.

Barrie’s 2021 tax-supported base operating budget for municipal operations has total gross expenditures of $370.5 million and a net property tax levy requirement of $262.7 million.

The 2021 capital budget of $243.2 million includes $73 million in previously approved funding, $168.8 million in new funding requests and $1.5 million associated with new investment and service recommendation operating budget requests.

This year’s capital budget includes $7.75 million for the Allandale Transit Hub development. It is to provide transit services and connections between Simcoe County, Muskoka and the Greater Toronto Area (GTA). Barrie Transit’s route system and schedules would be adjusted accordingly if the hub is built. It could have 13 bus bays, ticket selling services for local and regional transit, parcel receipt, washroom facilities, a waiting area vestibule, offices and retail space.

The principle site of the new transit terminal would be the vacant parcel of land immediately north of the current bus facility at the GO station, formerly home to the Barrie Lawn Bowling Club. Buses would enter and leave the site near the corner of Lakeshore Drive and Tiffin Street.

There’s also $4.75 million in this year’s capital budget for the city’s road resurfacing program, and $1.7 million for waterman renewal. And $4 million for transit bus growth and replacement.

Every Barrie capital budget has road projects and this one is no exception.

There’s $7.5 million in the budget for Dunlop Street West’s right-of-way replacement from Eccles to Toronto streets, and $4 million more for the project in 2022.

Big Bay Point Road will get a right-of-way expansion, from Bayview Drive to Huronia Road, for $1.6 million this year, $5.3 million next year and $3 million in 2023.

Councillors approved $4 million in cuts Monday  by using the city’s one-time COVID-19 funding of $1.3 million to offset the tax levy, by reducing it by a further $500,000 by taking $250,000 from the tax rate stabilization reserve and $250,000 from the reinvestment reserve, by cutting the contribution by $450,000 from the fleet reserve and taking $1.75 million from the Barrie Hydro Holdings fund. 

Councillors also cut the one per cent dedicated infrastructure renewal fund, worth $2.5 million, to 0.25 per cent, or $625,000. The funding is used to replace and renew Barrie’s roads, pipes and buildings. And councillors took a further $1.25 million from the tax-rate stabilization reserve.

Despite annual increase in salary and benefit costs from negotiated contracts and adjustments to benefit rates, overall salaries and benefit costs are expected to decrease by approximately $1.2 million for 2021. This overall decrease is a result of the reduction of part time staff mainly in recreation and operations because of scaled back programming due to the pandemic.

Last year’s property tax increase was 2.96 per cent, or 1.96 per cent more to deliver city services and those provided by Barrie’s service partners  for policing, paramedics, social housing, etc.  plus one per cent to the dedicated infrastructure renewal fund, used to replace and renew Barrie’s roads, pipes and buildings.

In November Zoocasa, a Toronto-based real estate company, released a report ranking 35 municipalities in Ontario on 2020 property tax rates, and compared the amount that homeowners could expect to pay in taxes at three sample assessment values. 

Barrie ranked 23rd with a property tax rate of 1.21 per cent on a home valued at $649,793; Toronto had the lowest rate at 0.599 per cent, while Windsor was the highest at 1.77 per cent.

In Barrie, a home assessed at $250,000 has property taxes of $3,026 in 2020, a $500,000 home has taxes of $6,051 and one assessed at $1 million has taxes of $12,102.

Municipalities levy priority taxes annually, and they are calculated as a percentage of a home’s assessed value.

The budget includes expenditures for the city’s service partners - police, library and the County of Simcoe.

City police asked for, and received, $57.3 million in municipal funding this year, a 2.65 per cent or $148-million increase from 2020. Barrie Police Service (BPS) has 244 officers and 118 civilians whose salaries and benefits take up 95.7 per cent of the police budget, and its 2021 budget includes no new hires. It does include money for body worn cameras  $140,000 to equip 140 front-line police officers. 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. 

Two attempts to reduce police spending were defeated by a majority of councillors. 

Barrie Public Library, with downtown and Painswick branches, wants another $161,989 from the city to maintain its services this year  bringing its municipal request to almost $8.5 million, an increase of 1.95 per cent. The library’s total 2021 budget is $9.7 million which is offset by $1.2 million in revenues.

The library board also asked for a third branch in Holly, to be located in leased space in a commercial plaza in the Mapleton Avenue/Essa Road area. It carries a $1.18-million capital cost, to be paid from development charges and fundraising, and annual operating costs of $723,877, including $221,000 for salaries and benefits. The Holly branch would be about 4,500 square feet in size.

Councillors approved staff negotiating a lease for the Holly branch and reporting back; all funding for the branch will be withheld until there’s a lease agreement between the landlord and the city.  The County of Simcoe provides paramedic services, Ontario Works, children’s services, social housing, long-term care (LTC) and more to Barrie. Its 2021 operating and capital budget for Barrie totals $26.857 million. Compared to the county’s 2020 budget of $24.9 million, that’s $1.9 million or 7.7 per cent more. But county officials are forecasting city costs of $25.47 million last year, $1.4 million or 5.4 per cent more. The City of Barrie is bound by service agreements with the County of Simcoe to pay its share of the above services, based on a formula including population and property assessment.

The Barre Fire and Emergency Service (BFES) operating budget is increasing by 1.8 per cent or $487,000 this year, and most of that (1.72 per cent) is for salaries and benefits. Salaries and benefits are 97.2 per cent of the fire department’s operational budget. The $27.5-million operating budget does include other increased spending  but revenue generated by long-term emergency communications contracts with other municipalities, grant revenues and internal transfer funding offset the BFES budget expenses. There are also 11 new firefighters starting in March of 2021. BFES has 144 operations firefighters with a total staff of 187, the remainder being in communications, prevention, training and administration.

This year the city is also going to finish buying a technical rescue truck in the capital budget. There’s already $375,000 put aside from the fleet management reserve, and another $375,000 is required from the same reserve, to buy the $750,000 vehicle.

There’s also $250,000 in the BFES for the new Fire Station #6, to service the Mapleview Road and Prince William Way area. The bulk of its $5.45-million cost will be in the 2022 and 2023 capital budgets.

On that typical $367,550 Barrie home with 2021 property taxes of $4,620, approximately $883 is for policing, $424 is for fire and emergency services, $318 is for the County of Simcoe’s services and $141 to maintain library services.