Niagara Region ends year with $17M budget surplus
NIAGARA REGION ENDED 2017 with a budget surplus of more than $17.1-million, as well as hundreds of millions in reserves and deferred revenue.
While adding to the Region’s already bulging coffers, the surplus also allows the fast-tracking of an affordable housing project and sets aside money to offset future tax hikes.
But the windfall also led to concerns raised by Lincoln Mayor Sandra Easton about overcharging residents, as well as the need for timely updates from the Region’s senior staff.
In addition to the surplus funds, the Region’s corporate services committee was told Wednesday that it also has about $276 million currently in its reserves, plus $118 million in deferred revenue – funding from sources such as gas tax payments and development charges that can only be used for specific purposes.
All in, Niagara Falls Coun. Selina Volpatti pointed out that the Region has about $400 million available through its reserves and deferred revenue.
Port Colborne Coun. Dave Barrick, committee chair, lauded regional staff for the increase, saying the 2017 budget results could only be achieved through collaboration between Niagara’s agencies.
“This type of operating success over the year can only be done by working together across departments and across agencies … and really from the ground up,” Barrick said.
He also later pointed out the surplus includes bailing out agencies that ended the year with a deficit — such as the Niagara Regional Police Board that was $2.3 million short of paying bills, primarily associated with an arbitrated collective agreement.
Regional Chair Alan Caslin called it “a fantastic outcome,” especially after keeping average tax increases below 1.5 per cent for the past four years.
But despite the windfall, Easton pointed out that “it’s important to not over-levy.”
“It’s also important not to overcharge on DCs (development charges). … I believe, fundamentally, that we have an issue with understanding the progression and completion of a work plan, and we should be hearing about this on an ongoing basis,” she said, adding chief administrative officer Carmen D’Angelo should be providing quarterly updates on capital projects.
“We have to understand how the CAO thinks, and we have to
be able to support the CAO when changes need to be made,” she said.
“I think this is a symptom of a condition that we need to get a hand on.”
Barrick pointed out that there are regular reports and updates on capital projects, and councillors can request additional information at any time. But Easton said the information should be provided through reports rather than in response to questions, and it should “be done at the highest level, in terms of the judgment of the CAO and senior staff.”
D’Angelo recommended dedicating most of the surplus to capital reserve funds, as well as waste management and water and sewer reserves, while $900,000 would be added to the taxpayer relief reserve.
Committee members also voted to dedicate funds to a project Niagara Regional Housing hoped to complete this year.
Caslin argued in favour of a request by Volpatti to provide additional funds to Niagara Regional Housing, to fast track the plan to expand an affordable housing complex in Niagara Falls..
“As you know housing has been a priority of this council for the entire term. We still have 6,000 people on the waiting list for housing,” Caslin said.
Thorold councillor and NRH Chair Henry D’Angela amended the motion to add $390,000 to the recommended $1.9-million allocation, giving it 25 per cent of the project cost and allowing it to apply for upper-tier government funding.
D’Angela said the funding will provide homes for 40 families on the waiting list.