The 2023 draft budget was presented to Municipality of Chatham-Kent Council Council on Wednesday night, January 11, 2023.
With community consultation and budget committee deliberations still to come, the proposed tax increase sits at 6.35%.
Gord Quinton, Chatham-Kent’s chief financial officer, says the 2023 budget balances the need for continued funding towards Chatham-Kent’s infrastructure, Provincial funding reductions and investment in programs and services that Chatham-Kent residents deem important.
“As our residents continue to deal with inflation levels not seen in 40 years, Municipal services are also facing those same pressures, with even higher inflation on infrastructure related expenses,” Quinton stated in the draft budget document, which can be seen read, here.
“In May 2022, Council set budget direction with a target no higher than inflation plus an additional 1.5% capital levy. I am pleased to say the draft 2023 budget is being presented at a rate lower than the current rate of inflation.”
Quinton added: “Administration is presenting a draft budget with an increase of 6.35% for Council’s consideration. It includes significant investments in Chatham-Kent’s infrastructure, with a proposed tax increase of 3.65% directed towards our Asset Management Plan. This 3.65% increase is comprised of the 1.5% capital levy, inflation on our infrastructure budgets, and offset by some assistance from the Federal government with increased Canada Community Building Fund revenues.”
Michael Duben, Chatham-Kent’s chief administrative officer, said a budget isn’t just a financial document, it is a guide to help move the community in the right direction.
“Our 2023 municipal budget represents the reality of where Chatham-Kent is now and a vision of what our residents want our community to be,” Duben said, in the draft budget document.
“Through discussions with elected Council and residents, it is clear that we want to build a community that reflects the ideals of those people who call Chatham-Kent home. We are increasing our emphasis on “people first” with plans to develop a mindset to celebrate our ever-increasingly diverse culture while also commemorating our heritage.”
Duben added: “We are emerging from the pandemic with new skill sets, attitudes, and abilities driven by an increasing number of ways to obtain public information, feedback, and interaction.”
Duben said this year’s budget presents several challenges.
“As with anyone running a household, our expenses have increased, often in dramatic fashion,” Duben said.
“This has focused us to make choices about our priorities and how we achieve them. All of our employees are constantly on the lookout for innovative ways to do things more efficiently. That effort and attitude are as important as anything else we do.”
Duben added: “Much like households have “must pay” expenses such as rent, mortgages, and utilities, the Municipality has legislated responsibilities we must fulfill. The Municipality also has to deal with the same economic factors that affect households, including higher interest rates and price increases due to inflation.
We still face significant infrastructure and asset management issues related to our geographical size, nearly 2,500 square kilometers and population density less than 50 persons per square kilometer.”
Duben said the Municipality continues to work with their partners in the provincial government to see opportunities to mitigate these challenges.
“Despite the dual battles of high-interest rates and inflationary pressures, we continue to enjoy a robust economic climate with more than 1,300 building permits valued at approximately $340-million, both figures among the highest in our history,” Duben added.
“We will utilize our community’s economic and human capital to develop budgets that allow us to reach our potential.”
Quinton said in late 2022, it was announced Chatham-Kent would be receiving a reduction in their Ontario Municipal Partnership Funding, which added an additional 0.51% to the 2023 draft budget.
“Municipal departments were able to find efficiencies to partially offset increases in operational inflation and staffing costs, resulting in a draft budget increase of 0.61%,” he said.
“The remaining 1.58% recommended increase pertains to business cases related to staffing and service level changes for Council’s consideration.”
Quinton added: “It is my opinion as Chief Financial Officer that the Federal and Provincial governments should take more responsibility in funding our Asset Management Plan, particularly in areas of mutual interest such as housing and climate change. Our housing stock is aging and storm water infrastructure are significantly underfunded for Chatham-Kent and will take decades to correct.”
Quinton said he continues to lobby for municipalities to have a share of the HST rather than these costs falling only on property tax levies.
The Municipality’s annual budget survey and public consultation are some of the ways staff and Council learn more about the community’s priorities, Qunton added.
“The 2023 budget survey garnered 223 responses,” he said.
“This, coupled with the budget public consultations scheduled for January 18th and 19th, 2023, will assist Council in determining the public’s wants and needs leading up to Budget Committee deliberations starting on January 25th, 2023.
The budget documentation provided to both Council and the public has been significantly improved, providing organization Full Time Equivalents (FTEs), base budgets, past actuals and forecasted tax rate impacts, Quinton said.
“All of these changes have been made to ensure Chatham-Kent continues to be open and transparent with our taxpayers,” he said.
“We have presented the 2023 budget in alignment with the 2018-2022 Council Term Priorities to clearly demonstrate our goals as a municipality. Once adopted by the new Council, the budget will establish the direction for all municipal programs and services for the coming year. Our final budget will represent resident input, Council direction and staff recommendations on how to best accomplish Chatham-Kent’s priorities.”
Quinton added: “Finally, I would like to thank residents who have contributed to the process and our staff who have worked countless hours to provide the draft budget for debate.”
Deputations were made on Monday night by the Chatham-Kent Health Alliance, who is requesting Municipal funding for their Wallaceburg hospital build, and from Indwell, who is requesting funding for an affordable housing build in Chatham.
Some upcoming dates related to the 2023 budget, include:
– January 18 at noon: Public consultation – virtual only via Chatham-Kent’s Facebook Live feed
– January 19 at 7 p.m.: Public consultation – virtual only via Chatham-Kent’s Facebook Live feed
– January 25 at 6 p.m.: Budget committee deliberations
– January 26 at 6 p.m.: Budget Committee deliberations
– January 31 at 6 p.m.: Budget Committee deliberations
– If needed, additional meetings will take place on February 1 and 2
Written deputations can be sent by email to ckfps@chatham-kent.ca by 3 p.m. on any day of deliberations and will be provided to the budget committee.
