February 5, 2021 · 0 Comments
By Sam Odrowski
The new term of Orangeville Council is maintaing its pattern of below the rate of inflation tax levy increases, this year coming in at 0.97 per cent.
Council approved its 2021 Consolidated Budget totalling roughly $70 million Tuesday night, with a total net levy of $36.9 million, which repersents a 0.97 per cent or about a $350,000 shorfall that is covered through increased taxation.
“The 2021 proposed levy over 2020 proposed levy – the increases are extremely minor and essentially inflationary in nature,” noted Town treasurer, Nadini Syed.
Mayor Sandy Brown and Coun. Debbie Sherwood voiced their support for a zero per cent tax increase this year by drawing roughly $350,000 from reserves, given the financial challenges brought about by the COVID-19 pandemic.
“This is a very good budget, I’m very happy with what’s been put in front of us. I think I see some nodding heads,” said Mayor Brown to Council during Tuesday night’s budget meeting.
“The only problem I have is it’s still a tough year for a lot of businesses and a lot of residents, and we do have the ability to reach into some of our reserves.”
Follow Mayor Brown’s comments, Coun. Debbie Sherwood agreed, adding that she would make a motion to take $356,417 out of the Town’s tax rate stabilization reserve, so the budget can be approved at zero per cent, however, a motion to approve the budget as is was passed instead.
“It was a really phenomenal budget, it was too difficult to cut anything because it came in really, really lean,” said Coun. Sherwood.
“You know I wanted one per cent but I’m very satisfied with 0.97. I think that’s something the taxpayers should be really grateful for because we know that you [Town treasurer, Nandini Syed] came in with just what we required, so again I thank you and all staff.”
Deputy Mayor Andy MacIntosh shared the same view, noting Orangeville’s tax rate increase is something to be proud of amidst the pandemic.
“I find this to be an excellent budget, I hear some real horror stories out there because of the pandemic – what some cities are going through with the increases that they need, and I think to bring a budget in that’s below one per cent is absolutely amazing,” he remarked.
“I too would like to see it at zero per cent but I have no issue with anything under one per cent.”
When looking at policing services, the Town of Orangeville is currently in the first year of a three year transitional billing model under the Ontario Provincial Police (OPP).
The projected cost to continue running the Orangeville Police Services (OPS) in 2021 was $8.52 million, while the OPP’s budgeted for $7.87 million this year, providing taxpayers with nearly $650,000 in savings.
The Town’s projections show the cost difference rises to $816,000 in 2022, before dipping down to $772,000 in 2023, which is the last year of the transitional billing model, before it’s converted to standardized billing, which is much more cost effective.
Projections show this is where the real cost savings kick in, with roughly $3.83 million being saved in 2024 and $3.84 million in 2025.
“OPP is a provincial agency and they serve more than 300 municipalities across the Province, their billing practices and billing model is very standardizes, so what we are seeing is not unique to the Town of Orangeville,” said Syed, during her presentation of the budget.
She added that it’s important to note, the savings projections provided by consultants who were hired to determine the feasibility of an OPP transition aren’t the same as what’s being projected by the Town.
This is because all financial modelling or forecasting is based on assumptions and factors in a margin of error.
“Any financial forecasting is based on a number of assumptions and there’s a number of variables one must take into consideration when building, whether an annual budget or a police services transition model,” Syed noted.
“When we’re looking at modelling and forecasting you have to keep in mind that at the time of the forecast that the consultants made, he took into account some assumptions, clearly the global pandemic that we’re incased in wasn’t part and parcel of those assumptions, and clearly as we can see right now, some of the variables are changing.”
The most notable impact to police services savings is a reduction in the number of grants the Town was expecting to receive through the OPP.
Coun. Todd Taylor highlighted the discrepancy between the consultant’s projections and the Town’s projections for savings, which is roughly 12 per cent lower than what was promised, before receiving some push back by Mayor Brown.
“That police budget, although less than what was predicted for the OPS if we had stayed, it is $800,000 more than what the consultant had predicted a year ago,” said Coun. Taylor before being cut off by Mayor Brown,
“What you’re trying to do here is some political grandstanding and this isn’t the time,” said Mayor Brown, in his response.
Coun. Taylor replied by saying he would suggest that it’s the same case for Mayor Brown, since the Town’s $6 million over what the consultant’s said the long term police savings would be and it’s important for the public to be aware of that figure.
Mayor Brown then recommended speaking about the issue at Council’s Feb. 8 meeting, noting that the budget meeting was not the appropriate place or time.
“That’s fine. I just think it’s an absolute shame that we’re in the situation that we’re in,” said Coun. Taylor.
In his concluding remarks of the budget meeting, he said: “I do appreciate my council mates and I can see why my questioning tonight would have been upsetting and it certainly was not my intent, but Mayor Brown I’m very disappointed in your conduct tonight and I felt that it was disrespectful.”