Timmins council has taken its first look at the 2020 budget, and according to the CAO, it's the lowest proposed impact in recent history.
The proposed net expenditure for 2020 is $43,202,040, which is a $393,802 (.92 per cent) increase over 2019.
The net figure, however, doesn't include budgets from agencies, boards and commissions that will impact the overall taxation increase.
At this point, it's not known how the increase will impact the average homeowner's municipal tax bill.
“We don’t have all of the MPAC data that’s required in terms of determining what assessment is,” said CAO Dave Landers after the meeting, adding the city doesn't typically receive that information until late December.
The net figure includes a $30,297 (.08 per cent) decrease year-over-year in operating costs. The capital costs are proposed to increase $424,099 — going from $7,662,824 in 2019 to $8,086,923 in 2020.
“This is the first time to my knowledge that we’ve ever brought forward an operating budget that is a decrease from the year prior for council consideration, so we’re working hard in trying to reduce overall costs,” said Landers.
A number of things have been done to eliminate costs.
He said projects have been re-tendered to drive savings instead of renewing contracts, and they've been more aggressive in making purchasing decisions.
"We are also working across departments better than we have in years gone by and found savings by using staff or equipment in one part of the city that can be used in another part of the city to save rental costs and to reduce overall labour costs. And we’ve had a couple of positions eliminated through attrition over the year to create some savings as well,” he said.
The goal is for council to approve the budget this month or early next year.
"It’s important to have that decision from council on it early in the new year so we can move forward with tendering projects so that we can get competitive bids, particularly for construction projects. The longer you wait to put them out, the worse the pricing comes back in,” said Landers.
Water and wastewater rates are separate from the tax levy and will be talked about at the Dec. 17 meeting. Because water bills are issued in January, director of finance Natalie Moore said they need to be approved in December.
Moore's 2020 draft budget presentation included a breakdown of departments.
In administrative services, there are reductions for the CAO, communications and tourism.
The CAO's department savings are $36,900, which the report notes is due to a "reduction in consulting fees related to continuous improvement."
There is a $62,200 reduction for communications.
This is due to the city not moving forward with creating a new manager of communications position approved by council in February. Instead, the 2020 budget includes $50,000 for a new communication strategy, which the city is working with Redbrick Communications for.
"We certainly see an importance in enhancing municipal communications, we did initially look to fill a position but weren’t successful in landing in exactly what we were trying to do. At this point, we’ve taken a step back, we’re working on more of a strategic plan with it,” said Landers.
In clerk services, there is a $6,900 (1.2 per cent) increase for council for "inflationary increases". A $100,000 increase in bingo and business license revenues is also budgeted for.
With fewer casket burials, there is a $22,000 reduction in cemetery fees. Because of this, the city will be sharing staff between the cemetery and parks and recreation to help with winter maintenance at parks.
One new position — information technology computer information systems co-ordinator — is being requested in corporate services. According to the report, it would be offset with program reductions.
A couple of factors are making a big impact in financial services.
In the spring, Timmins council approved a four-per-cent municipal accommodation tax. It applies to hotels, motels, cottages and other short-term accommodations, including Airbnbs, within the city. In 2020, that's giving the city a new revenue stream of $270,000. That is just the municipal portion of the tax, which is split 50/50 between general operations for the city, with the other portion earmarked to develop tourism.
Early in the new year, Landers said the tourism investment committee will launch and there will be a call out for proposals to decide where the tourism cash will be invested.
The city has also finished paying the Siemens Energy Project from 2009, which was $160,000.
In public works, two new staff are being requested.
A new utility technician position is proposed to be funded by decreasing contractor costs and eliminating one seasonal winter patrol staff. An engineer-in-training is proposed to be funded by project savings.
For community services, the transit operating costs have gone down by $74,000, which Moore's presentation says is due to the standardized fleet of buses, and there has been about a $50,000 increase in revenue due to increased ridership.
With a $23,000 reduction in arena revenue, increased snow removal costs, and inflation, the parks and recreation budget is proposed to increase by $149,000 (3.33 per cent) in 2020. One part-time winter maintenance staff for the skating oval is also being requested.
According to Moore's presentation, the major capital purchases proposed for 2020 are:
- $250,000 for McIntyre Headframe repairs
- $500,000 for IT network environment
- $250,000 for new flooring on the pool deck
- $400,000 for an emergency response pumper for the fire department
- $375,000 for the South Porcupine splashpad
- $260,000 for an outdoor multi-use pad at Roy Nicholson Park
- $550,000 for traffic lights
- $350,000 for a public works yards needs study and preliminary design
- $225,000 for landfill gas project
- $275,000 to transfer to future infrastructure
For roads, the proposed major capital projects are:
- $3.7 million for Connecting Link
- $500,000 for Laforest Road paving
- $850,000 for grind and pave
- $720,000 for bridge repairs on the Languir culvert and Frederick House timber culvert
Council has not approved the 2020 budget yet. The next budget meeting is Dec. 17 in council chambers.
