Midland’s infrastructure wins and woes could mean 6% tax hike
By: Derek Howard,
Local Journalism Initiative Reporter
Source: MidlandToday.ca
Sept. 05, 2024 Before the municipal budget and even the draft budget are addressed later this year, there is the budget overlook through which Midland council had their first look into a projected 6% blended tax rate increase along with 4% water and 5% wastewater increases.
During the recent regular meeting of council, the 2025 budget outlook was presented from the corporate services and finance department, with keen looks toward what cuts could be made when the draft budget is presented later this year.
Initial questions from Coun. Catherine MacDonald included the reasoning behind OPP billing at an estimated $190,000 (or 0.7%) tax rate increase, which CFO Lindsay Barron explained was due to the costs going up as did the town’s costs. Another question regarded the revenue of parking, which was downplayed in expectation of a future report.
However, the biggest focus was laid upon last week’s $30.1 million funding injection by the province through the Housing-Enabling Water Systems Fund toward Midland’s infrastructure, and how it would impact future growth. MacDonald asked Barron how the amount would alter the upcoming budget.
Barron explained that although the $30.1 million would go toward capital budget projects, as funded from water and wastewater user-based rates, modelling on the finances that typically take place in autumn hadn’t been calculated as of yet.
Coun. Bill Meridis took the projected 6% blended tax rate to task through the listed budget drivers, acknowledging that elements couldn’t be controlled by council such as labour and benefits ($400,000) or the phase-in of firefighting staff ($115,000).
Directly into the asset management was a listed 3% ($810,000) increase to capital reserves; on further scrutiny from Meridis, Barron shared that the previous two years had achieved roughly 2.6% toward the annual contribution to infrastructure.
Later in the meeting, Meridis attempted to introduce a 2.5% tax rate increase target for staff to aim for in the draft budget, but was met with full opposition by the rest of council who provided comments that staff would do their best regardless and that council would be the ones ultimately adding or subtracting when it came time; his notice of motion was defeated.
As Mayor Bill Gordon shared his thoughts on the matter, his comments reflected the disruptive water main break and boiled water advisory which had impacted the town and local factories the week prior, and how aging infrastructure was being handled by municipalities across the province.
“When we look at things like the water main collapse that we had that drained the entire water tower in like an hour and a half,” said Gordon, “that pipe is still sitting there half-patched, and it could break another 15 or 20 feet down the way; it’s just the same old pipe. So that thing’s going to need relining or whatever hocus-pocus the engineers come up with for this.
“This injection of $30.1 million which is an absolute record for a community our size – Mississaugas and Bramptons, places like that, and Midland got the same amount of money – it really is an amazing injection of cash for projects that we otherwise (would have difficulty to initiate),” said Gordon.
Gordon reiterated explosive growth as the primary focus for council to keep in mind as “the north star”, for which the infrastructure grant would allow 3,000 homes to be built in addition to the estimated 4,000-to-5,000 homes already in the development process.
“This is our way out of this financial hole we’re in where our costs have gone up, with everyone else at the same pace, and we haven’t been able to spread those costs around to more people because we’ve been a low-growth/no-growth/stagnated-growth community for decades.
“We’re on the cusp of being, with this one grant, increasing our tax base by 15 per cent,” Gordon said. He additionally called a 2.5-to-3 per cent increase “just unrealistic to expect” but added: “I am hopeful that when we get our draft, that it’s going to look a little different than this.”
As a final note, Gordon implored residents to take the 2025 budget survey to provide views and suggestions on the municipality’s needs and priorities.
The 2025 budget outlook report is available in the council agenda on the town of Midland website.
Sep 05, 2024.