Key Insights into Navigating the City's 2024 Operating Budget

KEY INSIGHTS INTO NAVIGATING THE CITY’S

2024 OPERATING BUDGET

C I TY O F OWE N S O U N D O N TA R I O

“Our goal is to efficiently provide a balance of services that our community wants and can afford, to help our city achieve its potential, and provide individual members the opportunity to live healthy, safe and thriving lives, now and in the future.”

- MAYOR IAN BODDY 1

TABLE OF CONTENTS CITY INTRODUCTION

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01

THE CITY’S ROLE IN SERVICES

02

BUILDING AN OPERATING BUDGET

03

PROPERTY TAXES

04

BUDGET TRENDS AND UPDATES

THIS IS OUR CITY

OWEN SOUND, GREY COUNTY, ONTARIO, CANADA Owen Sound is a lower-tier municipality in the County of Grey with a census population of 21,600 people and acts as a regional hub in a rural geographic area, with a daytime population expanding to more than 45,000 people.

Owen Sound employs staff in the areas of Community Services, Corporate Services, Public Works and Engineering, Strategic Initiatives and Operational Effectiveness and Fire Services. City of Owen Sound Police Services and the Owen Sound & North Grey Union Public Library are governed by separate boards which are funded in whole and in part by Owen Sound taxpayers.

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CITY STAFFING STRUCTURE Area City Manager Corporate Services Community Services Public Works and Engineering Fire Water and Wastewater Total

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FTE 4 29 36 31 31 20 151

The budget includes the City of Owen Sound staffing 151 Full Time Equivalent (FTE) employees, 13 Part Time Equivalent (PTE), 25 seasonal staff, and 13 summer students.

The table below breaks down the number of employees by department. It does not include Police or Library employees.

PTE 1 1 10 1

Seasonal

13

25

16 9

Student 3 10

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01 THE CITY’S ROLE IN SERVICES

Municipal governments in Ontario spend billions each year to provide the public services that meet the important needs of Ontario residents. The municipal government receives its power from the provincial government. The city or town council decides on by-laws that deal with issues concerning their community such as public parks, libraries, local police and fire services, garbage removal, and public transportation.

Municipal governments raise most of the money for financing these services from the property taxes paid by residents and businesses in the

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local area. Additional funding comes from user fees such as facility rentals, for example, and some funding comes from provincial government grants.

In the City of Owen Sound, councillors are elected at large, meaning all councillors represent the entire municipality. In Ontario, the head of a local (lower or single tier) municipal council is either called the mayor or the reeve.

What about Grey County Council? The head of a county council is called a warden. The county council is composed of designated elected members from the lower tier municipalities. The county council itself selects the warden from among its members.

444: THE CURRENT NUMBER OF MUNICIPALITIES IN ONTARIO Depending on its size and its history, a local municipality may be called a city, a town, or a township or a village. They are also referred to as “lower tier” municipalities when there is another level of municipal government like a county or region involved in providing services to residents.

Owen Sound is a lower tier municipality, where as Grey County is upper tier.

See the image on this page that helps define which level of government is responsible for which service or program for its residents.

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Te n n i s Co u r t s a t H a r r i s o n Pa r k

02

BUILDING AN OPERATING BUDGET

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HOW DOES OWEN SOUND BUILD ITS OPERATING BUDGET? Each year, City Council considers community priorities, Strategic Priorities, expected service levels, and legislated responsibilities as it sets the operating and capital budgets for the City of Owen Sound.

Over the last three years, the City has made significant strides to reduce the gap between Owen Sound’s residential taxes and the average for Grey Bruce. This budget will continue to close that gap. Council always strives to find a balance between services offered and affordability for citizens.

City Staff build a budget by implementing zero-based budget techniques. Zero-based budgeting deviates from traditional budgeting in that the budget for each new period is created starting from a “zero base.” Council and staff must justify each expense before adding it to the new budget, even old and recurring expenses.

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The City does not have the ability to simply disolve services from one year to the next, like a corporation might. This means fixed costs must be included in the budget first, such as staff wages and facility operations.

Next main contracts are included in the budget (such as transit and waste management). After this, each additional cost that isn’t fixed is analyzed and considered (such as professional memberships).

User Fees $9.9 million or 21%

Grants

$2.2 million or 4.7%

Total 2024 Operating Expenses: $47 million Taxes

$34.9 million or 74.3%

2024 OWEN SOUND OPERATING BUDGET The total operating expenses for 2024 is $47 million, but total tax levy required is $34,899,652.

The difference between what will be spent and what is required from taxpayers is offset by grants, user fees, and other revenues as City Council and staff work hard to stretch every tax dollar as far as possible.

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OPERATING BUDGET TIMELINE FOR 2025

2024

2025

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2024

2024

2024

2025

2025

PROPERTY TAXES

Co m m u n i ty Wa te r f ro n t H e r i t a g e Ce n t re , l o c a te d i n t h e h i s to r i c C N R a i l S t a t i o n

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HOW MUCH DO I HAVE TO PAY IN PROPERTY TAXES? The amount of property taxes a resident pays is based on the value of the property they live in.

Tenants pay a portion of their landlord’s property taxes through their rent. The property value is determined by the Municipal Property Assessment Corporate (MPAC) - not the City.

The taxes are calculated by multiplying the assessed value of a property by a tax rate. There are three parts to the tax rate: 1. The municipal tax rate, set by the City of Owen Sound 2. The municipal tax rate, set by the County of Grey

“While we should be proud of what we have achieved, our vision is not to coast on these successes, but to build on them and to imagine new possibilities for our great city. We’re bridging the gap between our city’s tax rates and those of other municipalities.”

3. The education tax rate, which is set by the provincial government

- Mayor Ian Boddy

For illustrative purposes, the chart below shows property tax calculations based on a sample tax rate of 0.15%. Owen Sound’s tax rate will be set in April of 2024.

Home Assessed Value by MPAC $200,000 $300,000 $400,000 $500,000

Residential Tax Rate 0.15% 0.15% 0.15% 0.15%

Property Tax Total $300 $450 $600 $750

Owen Sound has multiple tax rates, for different types of properties.

This includes: • Residential (single-family structure available for non-business purposes) • Multi-residential (seven or more self-contained residential units) • Commercial (used for retail, food service, office or other general commercial uses) • Industrial (may include warehousing, light manufacturing or other general industrial uses) • Farmland (any tract of land devoted solely to agricultural purposes) • Managed Forests (receive designation through an application for this tax class For more on property types, visit mpac.ca 12

WHY DO CITY TAXES NOT REFLECT THE CITY’S AVERAGE INCOME? Property tax is a regressive tax - it is not linked to one’s income. Property tax rates are uniformly applied. This does disproportionately impact lower-income residents and adds to the overall cost of housing. This is why Owen Sound continues to strive to find the best balance between services offered and affordability for citizens and continually looks to the province for other possible streams of revenue.

Income tax is a Progressive Tax

Property tax is a Regressive Tax

PROPERTY TAX IS A REGRESSIVE TAX 13 O we n S o u n d Wa te r f ro n t

HOW DO THE COUNTY AND PROVINCE COLLECT TAXES? The City of Owen Sound collects taxes on behalf of Grey County and the Province of Ontario.

Of each dollar collected by the City of Owen Sound...

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.20

...the County of Grey receives 20 cents for their programs and services

.08

...the Province of Ontario receives 8 cents for public education

.72

...and the City of Owen Sound keeps 72 cents of each dollar to provide services.

WHERE DO CITY TAXES GO? Of the $0.72 of each tax dollar collected from residents, the City of Owen Sound works to be financially responsible while providing many services and opportunities.

Below outlines how the City breaks down one City tax dollar: Bylaw $0.01 Art Gallery $0.01

ve

Tra

nsi

03 $0. ste ement Wa nag Ma 3 0.0 y$ t & .03 rar en $0 Lib pm g lo rin ve ee De ngin E

Go

Stormwater $0.01

rn

an

t $0

ce

$0

.0

4

Police $0.28

.04

Corporate Services $0.09

Community Services $0.12

Fire $0.17

Transportation & Roads $0.14

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POLICE & FIRE Includes Police and Fire services.

TRANSPORTATION & ROADS Includes construction and repairs to roads and sidewalks.

COMMUNITY SERVICES

CORPORATE SERVICES

Includes arenas, parks, cemetery, River District, programming, tourism and events.

Includes insurance, human resources, IT, health and safety, finance, procurement, service desk, tax billing and collection, and corporate facility management.

TRANSIT Includes conventional and mobility bus services.

DEVELOPMENT & ENGINEERING Includes community development, engineering, planning and building.

WASTE MANAGEMENT Includes garbage and recycle collection, compost site, household hazardous waste events, and future source separated organics.

BY-LAWS Includes by-law enforcement, parking and animal control.

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GOVERNANCE Includes Council, Strategic Leadership Team, and clerks.

LIBRARY Includes Library programs and services and the Adult Learning Centre.

ART GALLERY

Includes Tom Thomson Art Gallery programming and activities.

STORMWATER Includes stormwater network, drains and reservoirs.

*Water and wastewater are not included as they are 100% funded through a rate structure.

BUDGET TRENDS AND UPDATES HOW IS OWEN SOUND’S BUDGET TRENDING? Although reviewed and reset annually, the City’s Operating Budget doesn’t just last one year - the effects of City budgets span multiple years. Owen Sound references the BMA study which compares all participating municipalities in Ontario, and shows Owen Sound is trending toward our taxes being more in line with comparable municipalities.

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BMA Study Since 2000, BMA Management Consulting Inc. has annually completed a municipal comparative study on behalf of participating Ontario municipalities. The study identifies both key quantifiable indicators and selective environmental factors that should be considered as part of a comprehensive evaluation of a local municipality’s financial condition. Use of the study over a number of years provides trends to allow decision makers to monitor selected indicators over time. Trend analysis helps to provide interpretative context.

Closing the Gap Over the last three years, we have made significant strides to reduce the gap between Owen Sound’s residential taxes and the average for Grey Bruce. As presented, the 2024 Operating budget will continue to close that gap. City Council and staff always strive to find a balance between services offered and affordability for citizens.

For residential taxes, Owen Sound is high in the region in 2023, but in one year the gap between Owen Sound and the region average was reduced by 7%! This is a huge shift. This is even after a reduction in the multi-residential ratio that shifted the tax burden back to the residential tax class. The pressure is not off, and with our current proposed increase, the gap is estimated to close by an additional 5-7 % in 2024. In multi-residential and commercial taxes, Owen Sound is in the mid range, and in industrial the low range for the region.

See the most recent BMA study for full details at OwenSound.ca 18

TOP WAYS TO ENGAGE WITH THE CITY OF OWEN SOUND

Ce n te n n i a l Towe r

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CITY COUNCIL

Mayor Ian Boddy iboddy@owensound.ca 519-376-4440 ext. 1212

Deputy Mayor Scott Greig sgreig@owensound.ca

Councillor Travis Dodd tdodd@owensound.ca

Councillor Jon Farmer jfarmer@owensound.ca Residents can report concerns to the City using an online form at OwenSound.ca/ReportAConcern or by scanning the QR code above

Councillor Brock Hamley bhamley@owensound.ca

Councillor Marion Koepke mkoepke@owensound.ca

Councillor Suneet Kukreja skukreja@owensound.ca

Councillor Carol Merton cmerton@owensound.ca

Councillor Melanie Middlebro’ mmiddlebro@owensound.ca 20

REPORT A CONCERN

Completing the online form is a convenient and efficient way to receive information or address any issues. City staff will respond to concerns based on priority.

Topics you can report on include: • Animal Concerns • By-law Complaints • Garbage or Recycling Issues • Playground Equipment Issues • Pothole Issues • Sidewalk Issues • Snow Removal Issues • Traffic Signal Issues • Transit Service Issues • Tree Issues • Watermain Break Issues • And more While reporting, there is a chance to include a location, a brief explanation, and any photos that may help City staff to understand the issue better.

CITY OF OWEN SOUND 808 2nd Avenue East Owen Sound, Ontario N4K 2H4 Phone: 519-376-1440 Email: ServiceOwenSound@OwenSound.ca Web: OwenSound.ca

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