Changes coming to Chatham-Kent’s budget process

To help with long-term fiscal planning, Chatham-Kent councilors voted in favor of recommendations related to a multi-year budgeting process.

Staff had recommended developing a draft operating budget for 2024-2027, with a starting position of a net tax impact at or below the estimated rate of inflation.

In addition, there will be a 1.5 per cent increase for the capital asset management plan, and a 0.5 per cent increase to allocate towards the rate stabilization reserve.

The budget committee meeting schedule was also approved, with the opening night slated for Nov. 15 of this year, rather than a January date, as seen in previous years.

Steven Brown, director of budget and performance services, told council Monday that multi-year budgeting is considered a best practice for municipalities.

“This approach encourages a focus on achieving longer term plans, goals and objectives for funding plans, rather than a single year at a time,” he said.

According to a staff report, budget officials are monitoring the following:

– Significant changes in the consumer price index (CPI);
– Developing sustainable financial strategies for reserves, debt and infrastructure;
– Senior government legislative changes;
– Municipal cost of inflation pressures that are different from CPI;
– Magnitude of services delivered by municipalities and those that are controllable locally versus mandated by senior governments, such as public health;
– Competitive tax policies.

Brown noted that potential drawbacks include discomfort with forecasting long-term revenue and expenditures, along with a perceived lack of flexibility.

However, budget amendments are still possible for new council directions, cost drivers, and new or changed regulations.

“Both council and administration will have an opportunity to address future expenses and revenue anyway during the budget update process,” Brown said.

Prior to the pandemic, the provincial government began working on changes to funding formulas for programs in childcare, employment and social services and public health.

Permanent changes to these formulas will result in a larger share of the cost being borne by property taxpayers, the staff report added.

It is also expected that Chatham-Kent may see another decrease in Ontario municipal partnership funding for the 2024 budget year, due to assessment growth and positive employment and household income indicators.

Chatham County. Brock McGregor, who serves as budget chair, was pleased with Monday’s report, noting the changes will help people to better understand the process and its long-term impacts.

“(It’s) beneficial for businesses. It’s beneficial for homeowners,” he said. “London’s been doing it for awhile now. They got through the challenge of COVID much like we did, with that four-year budget process. … It shows that it can work in just about any climate.”

Chief administrative officer Michael Duben said there will be training for senior and extended management later this month.

“Once we get into it, we’ll realize that it’s really not all that different,” he said, adding most of the adjustment will likely come in the first year.

“We’ll have to work through this together. It is something new for all of us.”

BUDGET DATES

opening night
Nov. 15, 6 p.m.
Council chambers
Information meeting will review staff recommendations and any issues facing council. Public deputations for funding will be scheduled for this evening as well.

Community consultations (online)
Nov. 22, noon; Nov. 23, 7 p.m.
A brief presentation will be followed by a question and answer period.

Deliberations
Nov. 28, 29 and 30, 6 p.m.
Council chambers
Budget deliberation meetings. Public participation is scheduled for 8 pm

*If needed
Dec. 5 and 6