Oakville’s 2022 budget will keep property tax increases to the level of inflation but relies on the province to ante up about $5 million to make the numbers work.
The pandemic continues to impact town revenues, particularly in the Oakville Transit farebox, town staff told the budget committee on Nov. 16.
“It is expected that it will take some time for our revenues to actually return to pre-pandemic levels, and potentially not even in 2022,” said town CAO Jane Clohecy.
For the coming year, COVID-19 is expected to have a $5.34 million impact on the town.
But town staff have gambled that higher levels of government will cover those costs, allowing local politicians to keep taxes down.
“Over the past two years, the provincial and federal governments have assisted municipalities, including Oakville, with the financial impacts of the pandemic,” said Jonathan van der Heiden, the town’s director of finance. “The recent provincial fall economic statement referred to ongoing support for municipalities, and our hope is that this support will continue into the future.
“If this support does not materialize, our plan would be to use tax stabilization funding to offset these costs.”
Town share of property taxes up 2.3 per cent
Councillors got their first look at 2022’s draft operating budget of $327.4 million and draft capital budget of $274.8 million on Tuesday.
The budget will keep property tax increases in line with inflation, as directed by town council.
As the numbers sit, the budget proposes a 2.3 per cent increase in town-levied property taxes.
When combined with regional and educational taxes, that would amount to an overall property tax increase of 1.7 per cent, or an extra $12.27 per $100,000 assessment.
For a homeowner with a property assessed at $1.5 million, that would result in about $185 more in property taxes next year.
For every $100 paid in property taxes, about $25 goes toward infrastructure renewal, nearly $20 is spent on emergency services, about $12.50 pays Oakville Transit, and approximately $12 is spent on the road network.
‘Ambitious capital budget’
An “ambitious capital budget” proposed for next year is much larger than any the town has ever approved before, van der Heiden told councillors.
In an average year, Oakville spends about $120 million to build, repair and replace infrastructure.
“This year’s budget comes in at more than double that, at $274.8 million,” he said.
About $164.4 million will be for growth-related projects largely covered by development charges levied against new residential projects, including:
- $47.2 million for North Park Community Centre and Library
- $22.5 million for widening and reconstruction of Sixth Line from North Park to William Halton Parkway
- $21.7 million for widening Speers Road from Fourth Line to Dorval Drive
- $29 million to purchase land for a Palermo transit terminal and library
About $85.7 million will be spent on infrastructure renewal projects, including:
- $16.9 million for electric, conventional and specialized transit vehicles
- $16 million to develop new neighbourhood parks, parkettes and trails in North Oakville, including North Park sports fields
- $11.4 million for parks, trails and parks facilities renewal and rehabilitation
- $5.6 million for storm water and erosion control infrastructure improvements
- $3 million for new tax software
- $9 million for road resurfacing projects
The budget process also includes a review of the town’s rates and fees charged for services. Most are scheduled to increase by two per cent to reflect inflation.
Public input invited
Councillors will wrestle with the budget over the next five weeks as they hear from town commissioners and consider possible program additions.
The aim is to give final council approval to the budget on Dec. 20.
“Over the next few weeks, the budget committee will be reviewing the budget before making a final recommendation to council,” said budget committee chair and Ward 6 councillor Tom Adams.
“Public input is a critical part of our process, and I look forward to continuing to engage with residents over the next few weeks.”
Councillor Adams will host a drop-in zoom call for residents with budget questions on Nov. 25 at 7 pm. Email [email protected] to receive a zoom link.
Public delegations to the budget committee will be accepted at meetings on Nov. 30 and Dec. 2.