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Oakville's 2021 budget plans

budget 6

Property taxes in Oakville are set to rise by 1.7 per cent next year, based on a recommended 2021 budget rolled out by town staff this week.

For residents in a house assessed at $800,000, the tax bill will increase by about $96.

Last winter, when the word pandemic was mostly confined to dystopian novels, Oakville councillors directed staff to keep the 2021 property tax increase to the rate of inflation.

This week, town staff introduced operating and capital budgets that meet that goal, thanks to about $10 million in cuts and a $3.4 million dip into reserve funds.

The math

The town's planned spending actually equates to a 2.31 per cent tax hike next year. But its budget only makes up a portion of your tax bill. When combined with an estimated 2 per cent increase in regional taxes and no increase in education taxes, the net impact is 1.7 per cent.

Town of Oakville
Town of Oakville
The pressures

The main challenge remains the impact of COVID-19 on town revenues.

“As we move into the deliberations of the 2021 budget, the pandemic of 2020 has not left us,” said Jane Clohecy, the town’s CAO, as she introduced the budget.

“It has consumed many of the town resources throughout 2020 and unfortunately the same is going to be true for at least the first half of 2021.”

Staff are predicting COVID will cost the town about $17 million next year, primarily through lost transit fares, parking revenues and recreation fees.

To make up those costs without increasing taxes, staff are recommending about $10 million in cuts.

Intended to be temporary, the reductions are primarily related to part-time staffing, materials and contracted services related to the programs impacted by the pandemic, Catharine Hewitson of the town’s finance department told the town’s budget committee during a presentation on Nov. 17.

The details

The proposed 2021 operating budget is $348.3 million.

Town of Oakville
Town of Oakville

Increases this year are mainly related to staff salaries, contracted services, the cost of running the new Fire Station 8 and Oakville Trafalgar Community Centre, as well as growth costs for new infrastructure.

The recommended capital budget is $81.1 million.

Highlights include:

  • $14.4 million in green fleet infrastructure like electric buses, EV charging infrastructure and hybrid vehicles
  • $9.5 million in stormwater and erosion control infrastructure improvements
  • $6.8 million in active transportation projects like bike lanes, multi-use trails and sidewalks
  • $4.6 million in new neighbourhood parks, village squares and trails
  • $3.2 million for health and viability of tree canopy and natural environment
  • $2.5 million in traffic management and traffic calming infrastructure and studies
  • $1.6 million to implement online and digital solutions
Why not use reserves to cut this year’s tax increase to zero?

That’s the question the Joshua Creek Residents' Association had for Ward 6 councillor and budget chair Tom Adams.

The answer: Town staff used reserve funds to cover revenue shortfalls in the 2021 budget (ie. transit fares etc.) which are expected to recover in future years.

If reserve funds were used to cover inflationary costs, which remain part of the budget next year, larger tax increases or ongoing withdrawals from reserves would be required to cover those costs.

After the withdrawal this year, the town’s tax stabilization reserve balance will be about $65 million.

Some of the things you’ll see next year
  • Increased spending on traffic calming
  • Preparation for photo radar speed enforcement
  • North Park Master Plan and detailed plan for outdoor amenities
  • New development charges bylaw to maximize development charges
  • Completion of a town-wide parking strategy
  • Gypsy moth intervention program
  • Wi-fi on buses
  • More accessible bus stops
  • Free transit rides for children under 12, as part of a pilot program
Rates and Fees

The cost of almost everything from getting a business license or a fire inspection, to renting a room at a town facility or installing a gravestone, will increase by at least 1.7 per cent in the coming year.

Some items and fees will see a higher increase, to reflect cost recovery.

Most increases will take effect on Jan.1, 2021.

See a full list of rates and fees here.

Have your say

Town council will consider next year’s budget at its meeting on Dec. 21. Before then, there are several opportunities to learn more and delegate to councillors:

  • Nov. 25 (7 pm) – Virtual budget open house, hosted by budget chair Tom Adams. (Watch for a link on the town’s 2021 budget page.)
  • Dec. 1 (9:30 am) – Public delegations
  • Dec. 3 (6:30 pm) – Public delegations

Dec. 15 (1:30 pm) – Budget committee meeting


What's next?


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