Owen Sound City Hall. (photo by Matt Hermiz/Bayshore Broadcasting)
Owen Sound’s 2022 draft budget calls for a 2.51 per cent combined tax increase.
Councillors reviewed the proposed operating spending plan for next year in a special meeting on Wednesday.
The net levy increase is $939,474 (2.97 per cent) for a total of $32.6-million to be raised from taxation in 2022.
Homeowners would see their annual property tax bills rise by $44 per $100,000 of assessment under the planned budget as it stands currently. According to a city release, the increase for the average assessed home of $235,000 would pay an additional $104 or $8.60 per month.
The city’s projections assume a county tax increase of two per cent.
Owen Sound Mayor Ian Boddy says a pre-budget survey of council identified a target tax increase of between two and 2.5 per cent. He says in the long run the city would like its taxes to be more competitive with neighbouring municipalities.
“And right now we’re not,” Boddy says. “So that’s a long-term goal to try and increase our assessment base and attract new investment in our community and try to get our overall tax rate down compared to others.”
Council made only minor tweaks to the proposed plan on Wednesday to lower the total combined projected tax increase to 2.51 per cent, eliminating a number of new reserve transfers to storm water and pond maintenance ($50,000), parks and trails capital ($50,000), cemetery capital ($18,000) and campground ($40,000).
Some reallocations were also made to the capital plan to allow up for mould abatement and basement rehabilitation work to be undertaken at the former CN Rail Station on 1st Avenue West.
More than half of Owen Sound’s proposed levy increase is going to cover the cost of providing transit. Councillors approved a motion during budget discussions Wednesday to defer a discussion about the city’s transit contract and options for the future of transit until a special meeting in January.
Owen Sound’s Director of Corporate Services Kate Allan told councillors the proposed transit budget for 2022 requires an additional $499,000 to maintain the current service level — an increase of 49 per cent over 2021 transit budget. Increase costs for contracts, fuel and winter maintenance, as well decreased revenue from falling ridership and gas tax are among the reasons for the hefty projected increase to the budget for public transit.
The net operating budget for police services in 2022 is $8.02-million, a 2.6 per cent increase over this year.
The fire department’s budget is up 2.2 per cent next year to $5.08-million.
The 2022 operating budget includes $3.05-million in tax support for the capital program. The city’s $15.1-million capital plan for next year was introduced in early November. It includes the start of the second phase of the Downtown River Precinct Project — the rehabilitation of the 900 block of 1st Avenue East. Upgrades at Greenwood Cemetery, the Tom Thomson Art Gallery and Harrison Park are also part of the 2022 capital program.
Next steps in the city’s budget process include a final budget meeting and a public meeting in January.
The 2022 budget by-law is expected to be brought forward in February.