Region to consider 2018 rate hikes
Despite the increasing cost of providing regional services, the chair of Niagara Region’s budget committee is confident that rate increases will be kept to a minimum next year.
Committee members meet tonight to discuss setting wholesale rates for water, sewer and waste management services, as 2018 budget deliberations continue at regional headquarters.
“Since the beginning of this term of council, we’ve kept rates in line,” said budget committee chair Port Colborne Coun. David Barrick. “I know water, wastewater and waste management rates have been at guidance or below.”
He said he expects that trend to continue in the year to come.
For instance, a report developed by deputy treasurer Helen Chamberlain says the net cost of running waste management services is expected to be $ 34.6 million in 2018 — about $ 289,000 less than this year. And although the cost of water and sewer services is increasing, a second report being considered at tonight’s meeting says the recommended increases in that report also fall in line with regional council guidelines, set in July.
The Region’s water budget is estimated to increase by 2.2 per cent, while sewage treatment is increasing by about 1.9 per cent next year.
The 2018 operating budget won’t be up for consideration until December, but Barrick said staff are also working to ensure tax increases do not exceed limits set by committee members.
Those limits include a 1.5 per cent increase — about $ 5 million — for program service delivery, and 0.5 per cent — $ 1.6 million — set aside to support the 2021 Canada Summer Games.
“Certainly, the regional departments are meeting guidance,” Barrick said, adding the rates could be reduced further, once assessment growth is taken into consideration.
The Niagara Regional Police budget is an exception, but Barrick said the bulk of that increase is the result of an arbitrated settlement with the police association. And police department managers are finding ways within the department to at least partially mitigated that increase, he added.
“We’re spending a lot more time scrutinizing the expense side of the ledger. I think that’s important and it’s paid off,” Barrick said.
About $ 713 million of capital projects are planned for 2018 — including projects that were previously approved by council.
“That’s incredible … I think we’re doing just fine,” said Barrick, who is now leading the development of the third regional budget since becoming committee chair.
He’s hoping for more of the same in years to come, as the result of master plans developed to guide future infrastructure investment, expected to cost hundreds of millions of dollars in the next decade. Starting in 2019, Barrick said, a multi- year financial management plan will be developed as well, to ensure funding is available to implement those master plans.
“The days of just taking a snapshot of one year at a time are gone, I would say,” he said. “That’s good because we need to have better foresight.”
Despite working to ensure its own
Region tax levy increases ( current council term)
2015: 1.92%
2016: zero
2017: 2% ( including 1% to capital projects)
2018: 2% ( recommended, includes 0.5% for 2021 Canada Sumer Games)
finances are in order, Barrick said the Region continues to face cost pressures for programs it runs in conjunction with the provincial government — such as public health, and community services.
“The public health funding formula has been frozen for three to four years,” he said. “All that does is add additional pressure on property taxes. We would appreciate a review of provincial funding for public health.”
Long- term care homes are another example.
“The province only gives about $ 9 a day to feed someone in ( long- term care) homes. The balance has to be subsidized by taxpayers and or the residents themselves,” he said.
“There are pressures there that the region is responsible for that I’d say, it’d be appreciated if we had a greater conversation with the province in terms of their contribution towards some of those things.”