Night one of Chatham-Kent’s budget deliberations wrapped up with the budget committee trimming the proposed tax increase.
Going into Tuesday night, CK administration had presented a proposed tax increase of 4.92 per cent.
After adjourning to closed session, the percentage sat at 3.96 per cent courtesy of two motions from Ward 2 representative Anthony Ceccacci.
Ceccacci’s first motion was to reduce the tax funded asset management plan lifecycle inflation by $1,500,000. The Ward 2 representative didn’t see anywhere else in the proposed budget to drop a per cent.
Quinton didn’t agree with the AMP cut.
“This is a serious impact,” said Quinton. “It’s not just the two million dollars. You’re reducing the base by $2 million, which means you won’t have it next year either. Over 10 years, you’re losing $20 million of ability to build things”
The motion to reduce by a million and a half was voted through 13 to 4. The second part of the motion was to reduce this by another $500,000 which was approved in a 11 to 6 vote.
In a presentation to the budget committee, General Manager of Infrastructure and Engineering Services, Edward Soldo, talked about the capital budget and adapting to change.
“If we don’t invest in our assets, we all know that our infrastructure is going to continue to deteriorate,”
“Maintenance is going to get deferred, costs will continue to go up, and this is going to result in higher long term costs for residents. Not investing at the right time, or not investing at appropriate levels will lead to future higher tax increases later on and potentially lower levels of service then we have today.”
Soldo advised that the existing infrastructure is degrading faster than it is being repaired or replaced and that puts services at risk.
Ceccacci asked about possible debentures in the future and where Chatham-Kent would stand.
Chatham-Kent’s Chief Financial Officer Gord Quinton informed the committee that this council or a future council will be asked to borrow a significant amount of money on the municipal side.
Dust suppression blew back into council chambers after being cut from the previous budget and then reinstated and tendered over the summer.
Committee members voted 16 to 1 in favour of bringing back dust suppression service in the form of a revised pilot program, Councillor Rhonda Jubenville being the only opposing vote. The program will provide one treatment of dust suppressant near driveways and increased application at intersections.
With no tax impact, the money for this initiative would come from strategic reserves with up to $550,000 allotted to fund it. Administration will also include a business case for it to be added to the 2027 budget for a decision by a future council.
Ceccacci also proposed increasing landfill hosting fees from $150,000 to $200,000, an increase of $50,000. This motion passed unanimously.
Councillor Ryan Doyle proposed a motion to take $515,000 from reserves to reduce the tax impact by eliminating certain expenditures like investment fluctuation, insurance risk, and the community improvement plan.
Quinton advised against this motion as it could cause financial issues in the future, especially with projects not included in the budget.
“It’s a choice using the money in reserves to buy down a tax rate,” said Quinton. “If you feel the reserves are too high, they could just be shifted to where that big freight train is coming at you. Affordable housing or whichever one you want.”
The motion failed, as did splitting the motion into smaller chunks.
Budget deliberations will continue at the Civic Centre Wednesday at 6pm.
