Modest $2M surplus predicted for region
WATERLOO REGION — A modest surplus of about $2.1 million is forecast for the Region of Waterloo this year.
“Generally, a good news report,” chief financial officer Craig Dyer told the regional administration and finance committee on Tuesday.
Dyer, who presented a periodic financial report with yearend projections based on results to the end of August, said the surplus was generally due to extra revenue.
Waste management brought in extra dollars due to additional tipping fees and sales of recyclables. Along with an increase in recycling tonnage for the first eight months of the year, prices for recycled materials are 22 per cent higher than last year. “The prices have been favourable,” Dyer said.
Coun. Sue Foxton asked if the region will soon lose that profit from selling recyclables when new provincial rules take effect and producers will be entirely responsible for the cost of recycling programs. Currently it’s split roughly in half between municipalities and the companies that produce the items. Dyer said that shouldn’t affect the 2018 budget.
Dyer told councillors the most significant unknown for the region’s finances are the tax writeoffs that will be processed
between now and the end of the year. Tax writeoffs occur when there’s a change in the status of a property, successful requests for reconsideration or Assessment Review Board appeals for reduced assessment.
In 2016, property tax writeoffs totalling $6.9 million significantly exceeded the estimate of $4 million. A provincewide reassessment was done in 2016 to update property values that came into effect for the 2017 taxation year, and increased writeoffs are expected.
Dyer said there’s also been a number of centralized appeals for large stores that are likely to affect this year’s bottom line. Staff expect that tax writeoffs will exceed budgeted levels by just over $3 million.
Coun. Sean Strickland asked about Grand River Transit revenue, which was coming in under budgeted levels despite reducing the target in the last couple years.
The report said ridership revenues are trending slightly low and year-end estimates are a shortfall of about $600,000. “We’re close, slightly below,” Dyer said.
There will be a couple adjustments in next year’s budget related to transit, including a fare increase in mid-2017 and the launch of the Ion service.