Municipality of Kincardine Council met for the fourth time about the 2023 budget on Monday, February 27th. The agenda, published early on February 17th to allow Council additional time to review, ask questions, and make informed decisions, centred around a Budgetary Reductions Report.
At the end of the January 25th meeting, Council made the request that staff provide all options available to reduce service levels across the four departments, thereby reducing tax rates. Working line by line, staff provided a list of the options with notations on the impacts the reductions or eliminations would have. With a tax rate goal of 7%, the list with its notes was informative for Council.
“The budget process is part of the hard work we must do as a Council,” says Mayor Kenneth Craig. “Our staff initially brought us a budget that not only kept services but looked to improve upon them. The reality of this is that the state of the economy, inflation, and supply chain issues results in a significant tax increase with the original budget.”
Significant changes in provincial planning legislation also affect operations and approvals for funding decisions already made by Council at the previous meetings highlight a few of the challenges faced in building a balanced budget.
Mayor Craig continues, “The Budget Reductions Summary is not a list of items recommended for reduction or elimination by staff. It is an information list requested by Council to help us make those tough budget decisions. It allows us to weigh both the financial value and service impact of each item.”
Using this list as a starting point, Council’s discussions on Monday looked to find a balance that maintains service levels, invests in infrastructure and current assets, while setting aside savings for future needs, is a challenge Council is sure they can meet through collaboration. Council’s choices for changes in the operating budget by department were:
Corporate Services
· Apply $27,000 Ontario Cannabis Legalization Implementation Fund (OCLIF) to maintain the School Resource Officer position.
· A one-time reduction of $2,000 from the office equipment budget.
· A one-time reduction of $1,000 from the office supplies budget.
· The beach heritage signage request in the amount of $2,000 be cut.
· A reduction in By-Law Enforcement Services of one seasonal position for an estimated savings of $26,181.
Infrastructure and Development
· A $1.00 increase to Bag Tag charge for estimated annual increase in revenue of $160,000.
· W3 Bruce Landfill Site closure to public usage for a savings of approximately $6,000.
· Reduction of part-time contracted help at the W3 Bruce Landfill Site for an estimated savings of $20,550.
· Closure of the Re-Use Building at the Kincardine Waste Management Centre for estimated savings of $9,000 annually.
· Reduction of tree purchases and planting budget to $40,000 (a $10,000 savings).
· Elimination of the scheduled replacement of a door and tube heaters at Armow shop for a savings of $12,200.
· Removal of the Cemetery Columbarium Design for a savings of $5,000.
Community Services
· Reduction of contracted grass cutting services at a cost of $20,000.
· Elimination of one Horticultural Student position for a savings of $10,982.
· Drought-resistant and/or native plants be used in at least a quarter of municipal gardens as a pilot project.
· Deferral of Dog Park Enhancements (entrance sidewalk) to 2024 for a $5,000 savings.
· Reduction of Municipal Administration Centre’s cleaning contract for a savings of $20,000.
· Elimination of the annual Sports Hall of Fame for 2023 for a savings of $1,500.
· Elimination of the purchase of mats for the Youth Archery Program for a savings of $1,000.
· Establishment of a Sponsorship Program for facilities with estimated annual revenue of $25,000.
· Adjustment to Summer Day Camp fees to cover costs and break even with $44,212 in the 2023 budget.
Strategic Initiatives
· Elimination of the Tourism Centre landline phone for a savings of $1,500
· Elimination of the Tourism Centre facility rental on Highway 21 for a $15,000 annual savings.
· Reduction of two Summer Student Positions for an estimated savings of $24,365.
Additionally, Council directed that:
· $250,000 of the Bruce Telecom dividend be directed to Operating Expenses.
· $155,000 from the Contingency Reserve Fund be used to offset Physician Recruitment ($70,000) and Nurse Practitioner Program ($85,000) costs.
. To set aside $600,000 within the Healthcare Reserve Fund for the Kincardine Hospital Foundation for the Kincardine Hospital Expansion, resulting in a cumulative $1,200,000 commitment to this initiative.
“As with any budget, there’s bound to be some disappointment where cuts were made, or funding wasn’t added. It’s our responsibility, both Council’s and staff, to work together to make sure the Municipality of Kincardine operates in a way that’s responsive to both current taxpayers and future generations,” says Mayor Craig.
A fifth budget meeting to consider capital items and finalize the budget is set for Monday, March 6th at 5 p.m. The agenda is already available online at https://calendar.kincardine.ca/council.
Council meetings can be viewed live on Rogers TV Channel 6 or Bruce Telecom TV Channel 1, on demand on the Kincardine Rogers TV website, or by pre-registration through ZOOM. If there is a technical interruption during a live stream, the broadcast will pivot to the Municipality of Kincardine’s YouTube channel.
