Wawa Municipal Council's had its first look at this year's operating budget.
Just over a month after approving - in principle - the capital budget, Council reviewed the proposed multi-year operating budget, which focuses on 2023 but also lays out some plans for 2024-26, though Treasurer Manuela Batovanja told Council to focus on this year, with their first "true" multi-year budget to come next year, when it will cover 2024-27.
Council was told that staff sought to minimize the levy impact and property tax increase while maintaining service and addressing priorities laid out by Council - including through the Asset Management, 10 Year Financial, and other plans - but inflation plays a major factor, increasing operating costs for everything - despite that, budgeted expenses are only up 1.49 percent, with lower revenues such as declining grants being another major factor.
In the end, a 3.8 percent levy increase is proposed for 2023 - which would bring in over $191,000 more - which is expected to mean a roughly 3.6 percent rise for residential taxes - combined with increasing water and wastewater rates, it's expected to mean $12.98 more per month or $156 more over the year for the average household, something that Mayor Melanie Pilon emphasized is "not a small amount", especially amid the rising cost of living, but particularly for those on a fixed income, like seniors.
Wrapping the presentation, CAO/Clerk Maury O'Neill noted Council has options to lower the levy increase, including: reducing capital projects requiring tax support or increasing the use of reserves for them; reviewing, reducing, or eliminating programs and services; using rate stabilization funds; further decreasing travel and training, the Library levy, or long-term planning; or further increasing user fees, though she warned of issues with each option, including that costs are expected to continue rising with grant revenues diminishing so the rate stabilization fund will be needed more in the future, Council's already approved an increase in user fees, and cuts can lead to other problems down the line - she also noted Council could opt for a larger levy increase, preparing for the future.
The full presentation can be viewed on the Municipality's YouTube channel, and will be available on the municipal website, with public input to be accepted until March 8th - plans are for the budget to go to a vote March 21st.
