2022 Capital and Operating Budget - Final

Municipality of

Perth

Capital and

Municipality of

Budget Chair’s Review

On behalf of Council, I am tabling the 2022 Budget for Council approval. Through the 2022 Budget Process, members of Council and staff have worked to find a balanced position between the need to support important municipal services, invest in current and future infrastructure and asset needs, while limiting tax increases.

Council began the 2022 Budgeting Process with a policy statement and pre budget public survey, followed by a visioning session. The visioning session gave each member of Council the opportunity to outline their concerns about municipal services provided and the delivery of those services in North Perth, as well as their priorities for the 2022 budget

Capital Project Ranking

All new (i.e., not carryover) proposed capital projects for 2022 were ranked based on standard criteria to assist in establishing a priority list for Council’s consideration. The cumulative list was reviewed by the Senior Management team, with some minor adjustments being made.

Public Engagement

The development of the proposed 2022 Operating and Capital Budgets included a range of opportunities for public input and engagement. Opportunities included:

• the “2022 North Perth Budget” project page on www.yoursaynorthperth.ca. Engagement activities hosted on this page included:

o 2022 Pre-Budget Survey – a brief summary is attached outlining common concerns/themes in the survey results and how they are being addressed through the 2022 Budget and other municipal initiatives

o Budget Q&A Board

o 2022 Proposed Budget Virtual Consultation video and feedback form

• a Budget page on the municipal website at www.northperth.ca

Due to the COVID 19 pandemic, the Municipality was unable to host an in person Budget Open House. The information usually presented at the Budget Open House was adapted into a Virtual Consultation opportunity that included a video presentation and feedback form.

Interested parties have had the opportunity to view the live stream of all 2022 Budget meetings on the North Perth YouTube channel.

Communication and engagement on the implementation of the proposed 2022 Budget will continue throughout the year.

2022 Operating Budget

In 2022, the Province is providing the Municipality with $1,509,000 in funding through the Ontario Municipal Partnership Fund (OMPF), which is equivalent to $259 per household (compared to $1,445,300 in 2021). 2022 OMPF revenue has been distributed amongst the municipal department operating budgets.

OMPF is the primary funding source provided by the Province to municipalities. When the current Provincial Government came into power, a review was conducted on the OMPF program. The Province

2017 Budget Presentation to Council

has also announced its commitment to consult with municipalities to better focus OMPF on communities that need it most, including small, northern and rural municipalities.

For services funded by tax dollars, the estimated operating costs total $33,774,733.57 and after other funding sources, the Municipality will be raising $16,731,205.68 in local property tax. The following chart illustrates the allocation of North Perth tax dollars to various services:

Proposed 2022 Operating Budget

Asset Management 1% or $242,000.00

Programs and Facilities

16% or $2,629,364.84

General Admin, EcDev, Clerk, Finance, IT, Conservation Authorities, BIA 18% or $3,153,725.48

Police 15% or $2,566,036.21

Roads, Storm, Drainge, Cemetery 35% or $5,804,125.78

Fire 9% or $1,456,818.00

Library 5% or $879,135.37

Other operational budgets, totalling $12,827,083 00, are solely funded by user fees, which include Child Care Services, Building Department, Water Services, Wastewater Services, Waste Management and Perth Meadows.

As part of the Asset Management Financing Strategy approved by Council, $242,000 per year (beginning in 2020) is included in the annual operating budget. This should close the funding gap by 2048.

Introduced in 2018, the Stormwater Management Area Rate (SMAR) is an area rated levy to provide for future stormwater management (SMS) services in the built up area of Listowel, including some of the fringe development. The levy for 2022 is estimated at $250,000 and is shared amongst the properties within the SMAR boundary.

The Business Improvement Area (BIA) levy of $119,300 is also area rated to commercial properties in a limited boundary.

2017 Budget Presentation to Council

2022 Capital Budget

The 2022 Capital Budget includes multiple carryover projects from 2021 Some significant carryover projects include:

• NEDL(Northeast Development Lands) Walton and Davidson Pump Station

• Transportation Master Plan

• Master Servicing Plan

• Community wide Climate Change Plan

• Budget/MMS Software Application

• Hydraulic Re rating of Wastewater Treatment Plant

• EMCC Refurbishment/Renovation

• Aquatic Facility Drawing

A number of new projects are planned for 2022. Examples include:

• Water Meter Replacement

• Binning Street Area Master Plan

• Davidson Bridge Replacement

• Asphalt Resurfacing

• Monkton Ball Park Lighting Upgrades

• Listowel Memorial Pavilion Upgrades

The overall project cost estimate for 2022 is just over $16 8 million. Carryover project costs represent $7,432,731.00, or 44%, of the overall amount. The ongoing project work is being funded by Development Charges revenues, reserves/reserve funds, donations and provincial/federal grant funding.

Maintaining and improving North Perth’s municipal infrastructure will continue to require significant and planned investment.

Impact on Property Taxes

The North Perth Building Department had another busy year in 2021, issuing 371 building permits, which included the creation of 174 new residential dwelling units This increased tax base allows the total budget levy to be applied across a greater number of properties.

Due to the COVID-19 pandemic, MPAC postponed the 2020 property reassessment that would have reassessed properties based on a valuation date of January 1, 2019, with reassessments to be applied and used for budgeting through the 2021-2024 period. This is still deferred.

The North Perth 2022 tax levy increase is $951,560.68 for local municipal purposes. A total property tax bill reflects taxes levied by the Municipality of North Perth, the County of Perth and school boards. Specifically, for every residential tax dollar received in 2022, approximately 61 cents will be kept by North Perth, approximately 21 cents will be transferred to Perth County and 18 cents will be transferred to school boards. When all three 2022 levy requisitions are combined, the overall levy increase in

School Boards $0.18

North Perth $0.61

Perth County $0.21

2017 Budget Presentation to Council

Breakdown of $1 Residential Tax Dollar

North Perth is 5.8%. Due to assessment shifts and real growth, the residential levy impact is about 2.3%, or about 20 cents per day Actual % change will depend on any individual assessment changes and specific relative tax class. Other factors might include, the Listowel area Stormwater Management Levy, BIA Levy, waste bin charges and other service charges applied to your tax billing for collection.

2022 Property Tax & User Fee Impact Example

A) Calculation based on $450,000 residential assessment

2022 2021 Difference Per Day

Taxes

Stormwater Levy

Small Waste Bin

Average Water/Sewer

This example includes the stormwater levy (charged to Listowel and fringe area only) on a $450,000 assessed residence, small garbage wheelie bin and average water/sewer use. In this example, the ratepayer will experience an increase in their municipal costs for 2022 compared to 2021 totalling $175.38. This equals to .48 cents per day. For properties located in the municipality’s hamlets, the services they do not receive, such as Stormwater Levy or Water/Sewer, can be removed from this example to calculate their increase.

B) Calculation based on $1,483,500 farm assessment with $182,500 residential assessment

Per Day

This example is for a farm property

at $1,483,500 with $182,500 assessed farm residence, as well as a small garbage wheelie bin. In this example, the ratepayer will experience an increase in their municipal costs for 2022 compared to 2021 totalling

This equals .41 cents per day.

Budget Presentation to Council

Conclusion

This budget addresses operational and infrastructure needs to maintain anticipated municipal service levels required by our community, while managing inflationary pressures and past provincial reductions in OMPF funding. Members of Council will be closely monitoring the 2022 financial statements to ensure that the Municipality is sustaining the desired levels of services and moving forward with current development to ensure growth and prosperity during 2022.

On behalf of Councillor Lee Anne Andriessen, Vice Chair, and myself, I thank members of Council, our staff and the public for participating in developing the future of North Perth via the 2022 budget deliberations.

Yours sincerely, Allan Rothwell Councillor and Budget Chair

Budget

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Administration Capital Project 12 – 2022 Special Initiatives

Affordable Housing Initiative

In an effort to address the need for affordable housing in North Perth, funding may be utilized for the preparation of an affordable housing action plan, donation of land and/or monetary donations toward the development of affordable housing.

Climate Change

In an effort to act on climate change, initial steps will be taken to develop an implementation plan for the Greenhouse Gas Reduction Plan in partnership with the participating municipalities of Perth County. The implementation may include education, decision making tools, and municipal projects that reduce our greenhouse gas, plus ongoing monitoring of our progress.

North Perth Agriculture Excellence Strategy/Plan

Create a North Perth Strategic Plan for Agriculture specifically outlining potential value added projects for Agri Food. A consultant will lead the initiative, with extensive involvement from key stakeholders and potential partners. They will include reviewing past studies, developing priorities, determining the value added projects with timelines, business models and partnership opportunities. Funding/grant opportunities will be investigated for potential project of this nature.

2022 Budget Consultation Follow-Up

Pre-Budget Survey Themes Addressed in Budget

Below are some key concerns that were identified by residents who completed the 2022 Pre-Budget Survey. We have highlighted how components of North Perth’s 2022 Capital and Operating Budget address these concerns.

Traffic Issues

Traffic issues was the most important concern among respondents of the survey. There are some projects outlined in the 2022 Public Works department budget that would address traffic concerns including the completion of the Transportation Master Plan which would include a report back to Council in the coming months. Additionally, the beginning stages of a Listowel By pass Plan have been introduced in the 2022 Capital Budget.

General Infrastructure

The second most important concern facing survey respondents was growth, development and infrastructure. There are various projects throughout the 2022 capital budget that address the need to maintain and enhance current infrastructure including; roadwork projects and replacing bridges and culverts. Additionally, the 2022 Operating Budget allows for routine maintenance of existing infrastructure.

Growth, Development and Sustainability

Another concern that was indicated in the results of the pre-budget survey was growth, development and sustainability. In the 2022 Capital Budget, projects such as North East Developing Lands and the Binning Street Area planning process focus on responsible growth and plans for future development. As always, the building department operating budget also focuses on responsible growth and development.

2017 Budget Presentation to Council