Wawa Municipal Council's had its first look at next year's operating budget.
More than two months after seeing the initial draft for the capital budget, Council looked at the proposed multi-year operating budget, which focuses on 2024 but also lays out some plans for 2025-27, though Treasurer Manuela Batovanja told Council to focus on this year, noting there would be opportunities to review and revise for the subsequent years.
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, updated Strategic, and other plans - but inflation plays a major factor, increasing costs for everything - including payroll - with lower revenues such as declining grants being another major factor, along with rising costs to meet regulatory requirements and capital needs.
In the end, a balanced budget of $14,299,949 is outlined - up 1.95% from 2023's budget - with a 4% levy increase proposed for 2024 - which would bring in about $191,500 more - which is expected to mean a roughly 3.5% rise for residential taxes - combined with increasing water and wastewater rates, it's expected to mean $13.84 more per month or $166 more over the year for the average household - and it further estimates 4% levy increases for the following three years, as well.
Batovanja noted the capital budget has been modified from the version presented in September - including moving Town Hall and Fire Hall projects and taking more from reserves to reduce the reliance on taxation - with reserves set to decrease through 2027 before the Municipality needs to cut down on larger projects and focus on building those reserves back up.
Batovanja 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; 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 the rate stabilization fund will be needed more in the future - she also noted Council could opt for a larger levy increase, possibly adding a 1% capital levy, but recommended accepting the 4 percent increase initially outlined.
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 January 3rd - plans are for the combined budget to go to a vote January 16th, though Batovanja noted Council could delay that, if they need more time.
