Innisfil will be able to stand pat on a 4.95-per-cent increase in property taxes, despite budget increases for South Simcoe police and the County of Simcoe.
In 2024, the average homeowner in the municipality can expect to pay $5,033.16 in 2024, an increase of $237.62 over 2023.
The upcoming year is the second in the municipality’s multi-year budget cycle. Earlier this year, the then-new councillors worked through a staff-prepared budget for 2023 and 2024 that utilized the best estimates possible to predict what the town would need to spend to keep up with its infrastructure and service demands, all while maintaining its funding commitment to the police service — which it shares with Bradford West Gwillimbury — and the county.
But the estimation process is no easy task, and to virtually no surprise, the police and county budgets came in higher than predicted, with South Simcoe police increasing their budget by 6.9 per cent — nearly two per cent greater than estimated by the town at the start of the year — and the county passing a budget with a 3.7 per cent increase, up slightly from the 3.4 per cent predicted.
Yet the more than $1.1 million in unaccounted funding was handled by the town without changing the tax levy impact on its residents, thanks to the growth the municipality has seen in the past year.
Just as staff’s estimates for the police and county increases were off, so was its prediction for the growth in assessment.
“Fortunately, our assessment growth which generates taxation revenue was a lot higher than we initially estimated,” said town treasurer Audrey Webb. “In the case of 2024, our actual assessment growth is coming in a lot greater so that gives us more taxation revenue. So, while the county and the police did increase, we’re able to absorb that in the 4.95 (per cent) increase.”
Staff had predicted the assessment would grow by two per cent in 2024. The actual number is expected to be nearly double that, with recent Municipal Property Assessment Corporation (MPAC) data reflecting a 3.68 per cent increase.
That allowed the town to shoulder the burden of the increased costs, but also allocate extra money to other items, including $216,000 to the transit budget, $220,000 to the fleet equipment reserve and an increase of $210,000 to the capital levy.
The net increase to the capital levy will be $4.4 million, however, as two projects for the fire department from 2026 need to moved forward to 2024 to take advantage of manufacturer’s savings and accommodate post-COVID-19 pandemic realities.
Fire protection is not immune to the other inflationary pressures found in nearly every facet of life, with the cost of apparatus, such as heavy machinery, increasing by more than 30 per cent in some cases since before 2020.
Fire chiefs across North America have begun lobbying on behalf of their communities and have successfully convinced the leading manufacturers to limit their annual cost increases to no more than six per cent, where possible, over the next few years, Innisfil Fire and Rescue Services Chief Brent Thomas told council.
“(This is) good news for us,” he said. “We can adjust our capital budget numbers appropriately.”
Delays in production have increased the lead time needed to procure new equipment, with up to 500 days required from ordering to get a new fire truck in service. That’s expedited the need to order the new equipment now so the town can remain compliant with safety standards.
“We’ve talked to council before about compliance to the fire underwriters’ survey where we’re asked to have trucks in service — our front-line pumpers — for 15 years, reserved for five and then replaced, as part of the insurance requirement,” Thomas said. “In order to get these trucks in the years that we should be getting them we need to pre-order.”
Two pumpers and one aerial fire truck will be replaced through the increase in funding, totalling approximately $5.8 million. Thomas told councillors that approving the expense before the end of 2023 can save the municipality about $350,000.
It was the town’s first budget since Mayor Lynn Dollin was granted strong mayor powers. While the process remains largely the same under her watch — with staff doing the heavy lifting in creating the document they always have — there are more “procedural gymnastics” council has to do now than previously.
Most importantly, she was happy with the budget and included in the motion council passed unanimously by recorded vote that the budget was being recommended by her fellow councillors.
“This is a responsible budget,” Dollin said. “Years ago, I would have thought 4.95 was a big number but when I’m seeing what’s coming out around the county, not so much.”
Dollin said this the right budget for the town and lauded her colleagues for how they were able to put together such a strong two-year budget so early in their term.
“(I’m) very happy we were able to maintain the 4.95 we set a year ago and I’m still very much in awe of the fact that you all sat here after only a couple of weeks on council and were able to motor through a two-year budget,” she said.
Councillors have between now and Jan. 10 to make any suggested changes to the budget. During that January meeting, if all goes to plan, council will pass any resolutions for budget adjustments, agree to shorten the 30-day adjustment period and endorse the budget. The mayor’s stamp of approval would immediately follow.
