Written By Jan Sims
MIDDLESEX CENTRE - Middlesex Centre did some financial crystal ball gazing, looking into long range financial plans.
An independent consultant’s report was presented at the June 4th council meeting that looked into priorities and challenges over the next 15 years.
Key recommendations include implementing an annual property tax increase of 7.4%, consolidate reserve funds, close the gap in infrastructure funding and prioritize debt for growth-related projects.
A representative from BMA Management Consulting spoke to council virtually, beginning the presentation by saying the document is designed to serve as a roadmap and is not a budget.
The report outlines a number of challenges facing the municipality, including limited revenue, aging infrastructure, rising costs and economic uncertainty. However, it goes on to say that Middlesex Centre has one of the lowest tax rates among peer municipalities.
Councillor Jean Coles asked why the comparators were not neighbouring municipalities, and was told the analysis was based on communities with similar ratepayer profiles and consumption rates for services like water.
The report projects operating budgets will be based on a big hike in tax revenues to cover costs; rising from 68% in 2025 to 80% by 2034. That’s based on notable declines in area such as grants.
It also takes aim at capital reserves. Currently there are four individual reserves for roads, vehicles, fire and facilities. The report suggests using separate capital reserves provides limited flexibility.
Council was also presented with a report on long-range funding of water, wastewater, and stormwater.
“This municipality has been proactive,” said Deputy Mayor John Brennan during discussion of the reports. “Yes, our water rates have been higher, but I think we have increased our reserve funds substantially in the last 10 years…Yes, it’s a lot of increases, but we have to continue to be proactive to ensure our residents have the level of service they have today,” added Brennan.
