EDITORIAL

Fearmongering or prudent financial planning?

Everyone is entitled to an opinion and in a letter to the editor last week an opinion was expressed that I was fearmongering in regard to the affordability of the proposed new main branch library. No - I wasn’t. Let me offer some context.

The County, with an annual budget of $230 million (operating and capital) and assets of over $2 5 billion, has never had a long-term financial plan (LTFP). Decision making to date (24 years since the County was formed) has been done in the absence of an overarching financial plan. Decisions we make can impact financially for 25 and more years.

I have advocated for a LTFP since I joined Council in 2018 and in December 2023 Council were presented with the first draft. The early takeaways are a) to provide financial oversight on an increasingly complex business and to increase confidence in our decision making we need this tool in our toolkit and b) we are rapidly increasing our debt and selfimposed limits will be exceeded next year, with limits mandated in the Municipal Act potentially challenged in the coming 5 years.

Things change and the County is growing - no kidding! An example - just 3 years ago we forecast capital spending in 2024 would be $45 million - in 2024 we are putting forward a capital budget of $ 92 million - more than 100% change in 3 years! Another example - our tax levy has increased by 40% in the past 4 years.

And there’s more - we have recently been made aware of a potential additional funding call of $ 30 million over the next 6 years to meet our Social Housing commitments and the potential for up to $ 200 million from the County to deliver our share of funding for the proposed new BGH. A LTFP will greatly assist in modelling, help us plan a sustainable financial future that doesn’t overburden taxpayers, and allow us to make better decisions and tough choices on what we can afford and when

Due diligence by Council and staff is not a once and done activitywhen new information is brought forward, as it has been with the 2024 10 year capital budget forecast and the LTFP, I believe we, as Councillors, are duty bound to reflect on it and act as appropriate in the interest of residents and taxpayers

Fearmongering or prudent financial planning? I leave the reader, the taxpayers and the voters to decide.

John Bell, B Sc , M Sc , MBA, MIMechE (retired) Councillor Ward 3 and taxpayer