Ratepayers await a definitive answer on the city’s 2025 operating and capital budgets, however at last Monday’s council meeting some serious pencil sharpening was evident.
The process began with a proposed 4.93 per cent hike to the municipal tax levy next year.
However, after more than two hours of deliberations, that hike has been whittled down to about a 3.8 per cent increase.
This was accomplished by dipping into reserves for an additional $650,000 to soften the hit on ratepayers next year.
Next year’s proposed levy is almost $74.5 million, up from just shy of $69 million this year, an 8.13 per cent increase.
Factor in the estimated additional growth-related tax of 3.2 per cent and ratepayers were looking at a 4.93 per cent hike.
City treasurer Dan Sheridan advised in his report to council, “The 2025 operating budget has been a challenge, the high rate of inflation along with the need for additional resources due to growth and development have resulted in a proposed levy increase that is higher than in previous years.”
The proposed budget had required dipping into reserves to the tune of $1 million.
Sheridan added, “The use of reserve funds doesn’t erase the large increase but it allows the city to realize a modest tax increase in 2025 and offset the increases in 2026 where fewer pressures are expected.”
“If the actual growth amount differs from the estimate,” assured Sheridan, “the reserve contribution will be adjusted to hold the approved levy increase.”
Major factors impacting the operating budget are a hike of $2.3 million in wages and benefits due to contract increases and a $2.1 million bump in that same category as a result of new hires at city hall.
New borrowing costs add $610,000 to the proposed budget and the city has committed $400,000 to assist The INN with its operating budget next year.
In total, almost 24 full-time equivalent positions will be added to the payroll next year “to maintain the current level of service” in the city.
Sheridan will report back to council at Monday’s (Dec. 16) meeting with the budget update.
In the meantime, a reader commented on our LinkedIn page about the need to assume debt to ensure the growth of the city (see The Echo Chamber below).
Just how much long-term debt are we talking about?
According to the finance director’s report to council, at the beginning of next year, the city has almost $44 million in long-term debt.
Breaking that down, Valleyview Home has $1.9 million to be paid down in 2026, $1.3 million of which will be this coming year.
The city’s social services location at 423 Talbot Street has a balance of $1.2 million with a maturity date of 2037. In 2025, the payment will be $121,000.
Just over $10 million is owed on the new St. Thomas Police Services home and that also comes due in 2037. The 2025 payment is just shy of $1 million.
At 1Password Park, $7.2 million is outstanding and the loan matures in 2038. This coming year, $660,000 will be applied to that total.
The social services hub at 230 Talbot Street in the west end has an outstanding debt balance of $7.2 million which matures in 2050. This year $413,000 will be applied to that total.
Almost $6 million is outstanding in the investment loan associated with the former St. Thomas Energy acquisition of a stake in Chatham-Kent-based Entegrus. No payment is proposed for 2025.
And then a long-term debt of $10 million linked to Yarmouth Yards, the city’s new industrial park. This is related to the settlement with the Municipality of Central Elgin for the hundreds of acres of land absorbed by St. Thomas for the new industrial park. It is not due until 2054. Next year, $610,000 will be applied to that.
You can read more about that last item here.
Sheridan notes in his report to council, “While the City’s debt is relatively high, servicing this debt isn’t putting a large strain on the budget as our 2023 levy per capita is at $1,469, which is well below the average municipal levy at $1,865.”
He does caution however, “The development of Yarmouth Yards will require St. Thomas to take on significant debt in the next five years, it’s important that the city doesn’t incur any unnecessary debt during this time to maximize the municipal debt limit.”
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FINE-TUNING TRANSIT BOOKING
On-demand and parallel transit booking will also be a focal point at the Dec. 16 meeting of city council.
In June of this year, several members raised concerns about some of these buses arriving early and departing before the scheduled pick-up.
As a result, riders were missing the bus.
In a report to members from transportation technician Rose Patrick, it is noted staff analyzed a year’s worth of data encompassing 32,700 trips.
Of those planned trips, 95 per cent were completed within the pickup window.
Five per cent of trips were marked as ‘No Show.’ That is, the vehicle arrives, waits and the rider does not appear.
According to the report, two trends are emerging. There are issues with recurring bookings and also with trips booked far in advance.
And so several service improvements are being recommended.
- Reduce the trip booking window from 30 minutes to 15 minutes.
- Reduce the 14-day booking window to 7 days
- Reduce the 14-day recurring trip booking to a limit of 7 days.
- Upon rider request, permit the use of Interactive Voice Response (IVR) robocalls, to riders who do not have smartphones. This will allow non-smartphone users to receive automatic calls to update them on their trip windows and notifications.
NEW COUNTY WARDEN: WORKING TOGETHER AS A UNITED TEAM
While it lacked the drama of last year’s election of the County of Elgin Warden, there were those in the council chamber who agreed that it was a good thing.
On Tuesday evening, Southwold Mayor Grant Jones defeated Malahide Coun. Mark Widner to sit as County of Elgin Warden in 2025.
At this time last year, members of Elgin county council re-elected Bayham Mayor Ed Ketchabaw as warden for 2024.
He defeated Jones for the position.
After 4-4 votes with a spoiled ballot on two rounds of voting, it was Ketchabaw’s name that was eventually drawn out of a hat.
And so on Tuesday, it was Ketchabaw who presented the incoming warden with the official gavel and watch that accompany the position.
Jones also served as warden in 2017.
In his election pitch to members of council, Jones looked back on the past year – while casting a glance forward – on what “is going to be an exciting time.”
He continued, that council is anticipating the delivery of a roadside needs study and a transportation master plan.
“These are critical studies that will enhance our decision-making process, given the growth that’s expected in the region over the next few years.
“I see our biggest challenge as nine representatives from seven municipal departments working together as a united team for the common good of all.
“These councillors need to understand that a successful one is a win for all. I also think that there are ways to improve and enhance these wins with the leadership from Elgin county.
“But we need to get along, and that’s pure and simple. We all have to work around this table as a team.”
“I think we can do a better job of supporting each other, and I think that will go a long way toward our success in the future. Sitting down with the municipalities and just how can we work together? What can we do to make it better for everybody?”
He stressed, “Economic development, whether it’s industrial lands, residential lands, or commercial components to these residential lands, we need to focus more and centre our attention on those issues.
“We can’t emphasize enough how much industrial and commercial growth will support the rest of the issues we’re dealing with these days.”
He wrapped up his pitch by declaring, “We need to grow.
“We need to be progressive. We need to be on the cutting edge. And I think I can help deliver that.”
Speaking with Jones immediately after the election, he admitted a busy year lies ahead, and not only at the county level.
Southwold is experiencing rapid growth with the Amazon fulfillment centre up and running, and residential growth in Talbotville, Shedden and Fingal, all of which will require construction of a new wastewater treatment facility.
He reiterated the need for strong and clear communication, not only amongst all of the municipalities in the county but also with the City of St. Thomas.
“I think we can do a better job of supporting each other, and I think that will go a long way toward our success in the future.
“Sitting down with the municipalities and just how can we work together? What can we do to make it better for everybody?”
Jones wrapped up the conversation by marvelling at the overwhelming dynamics – both in residential and industrial growth and the supports required – now present in the county as opposed to his term as warden just seven years ago.
A time almost sleepy in comparison.
And now the County of Elgin truly lives up to its branding, Progressive by Nature.
THE ECHO CHAMBER
Several responses to our 2025 city budget item last week including this observation from Jeff Wedlake.
“Extremely hard to grow as a city if we don’t take on debt. Also can’t expect to get any new services (i.e. Indoor Aquatic centre) without debt!”
Eric Jones has concerns about dipping into reserves.
“Double the $300k reserve burn of last year at $650k. Probably not the best idea given possible VW difficulties. City council better learn to tighten the belts.”
And Valerie Young checked in again this week with the following.
“Well I’m certainly glad the city hasn’t forgotten about the Animal shelter NEXT YEAR, this has been going on for what, four years now? And always next year.
“I’ve also noticed the city Animal Services over the last year has been actually using their Facebook page to post animals coming in and to raise money, finally a step in the right direction.
“Also the city will have to do a major overhaul of Burwell Road after PowerCo has its plant built and all roads modified since all the transport trucks & dump trucks are using Burwell to get into town. The roundabout wasn’t built for large trucks and they all go up onto the centre island taking big pieces off it.”
