Mathieu Goetzke, Acting Chief Administrative Officer, introduced the presentation, outlining the 2025 Budget Committee review schedule, community engagement efforts, essential services, 2024 highlights, and the overall context of the Regional community. He noted that while growth offers opportunities for new initiatives, it also places increased pressure on our communities.
Wayne Steffler, Commissioner of Corporate Services and Chief Financial Officer, continued the presentation, discussing key economic indicators, including inflation, capital cost escalation, the wage gap, the Government of Canada’s 10-year bond yield, and fuel prices. When addressing Regional tax comparators, he highlighted that, based on the average two-story home, the Region has the lowest total tax bill compared to those comparators.
M. Goetzke continued the presentation, introducing the 2025 budget. He noted that municipal taxes account for about 9% of total tax revenue, a relatively small portion of the overall tax burden, despite the Region delivering a wide range of services to the community. He reminded the Committee that all figures presented are draft numbers and subject to change. The preliminary 2025 budget will be tabled on October 30, and today's meeting is intended for information sharing and providing an overall budget context—no budget decisions are expected at this time. He spoke to significant 2025 operating budget impacts, draft major non-tax revenue estimates and cost-shared programs.
In response to a Committee question about the Region’s population growth and the concept of “growth paying for growth,” M. Goetzke clarified that, while the community is built on a foundation of high growth with many associated benefits, some of these benefits are not directly realized and may not fully offset the costs incurred. He explained that certain services, such as transit, require adjustments to support growth. Although growth can bring efficiencies, transit expansion, for instance, is not fully funded by growth alone. He noted that sector-specific responses are needed to manage growth effectively and noted that staff will provide further information on instances where growth does and does not cover its own costs.
Connie MacDonald, Chief Communications and Strategy Officer, provided an update on the discussions and topics explored by the Strategic Planning and Budget Sub-Committee. These included a review of Regional funding provided to external organizations, an analysis of legislatively mandated services and administrative costs, the 2024 direct Regional net operating budget expenditure (excluding Police Services), and potential options to achieve a tax increase of less than 8%. She presented various scenarios and highlighted that, based on the current draft budget, the projected property tax impact, with an estimated assessment growth of 1.75%, is 12.1%.
In response to a question from the Committee, C. MacDonald clarified that a tax increase in the range of 12% would allow for various service expansions, providing more services to the community and incorporating options for future revenue generation and cost avoidance. In contrast, a tax increase closer to 8% would require service reductions, which may not adequately position the Region to meet the community's growing needs and sustain essential services in the long term.
Members of the Committee enquired about the Tax Stabilization Reserve fund.
Regional Chair K. Redman assumed the role of Chair and continued presiding over the meeting.
Councillor M. Harris spoke on behalf of the Strategic Planning and Budget Sub-committee, reflecting on the committee’s process and goals. He noted that the primary aim was to give Council a head start on the budget work ahead and expressed hope that the Sub-Committee met Council’s expectations. He thanked Sub-Committee members—Chair Redman, Councillors Foxton, Salonen, Craig, and Huinink—for their dedicated work over the summer, emphasizing that diverse perspectives and constructive dialogue were crucial for making informed decisions. He acknowledged that, while the Sub-Committee didn’t resolve all budget challenges, their discussions identified actions to help manage a growing budget. He concluded by stating that the committee’s work has set a foundation for Council to build on and highlighted key areas on the following slides for further consideration.
He spoke to the Strategic Planning and Budget Sub-Committee recommendations which suggested amending the Grants Administration Policy to streamline approval processes, align with the strategic plan, and avoid in-year funding decisions. They also recommended requiring grant applicants to declare other municipal grants they are applying for. The Sub-Committee also recommends revising cost assumptions to reflect current trends, using the tax stabilization reserve to reduce property tax burdens, and moving forward with the POA expansion to maximize revenue. They also recommended presenting a ranked list of service reduction options with associated risks, ensuring all budget increase requests include projected tax impacts, and deferring new budget increase requests to the Strategic Planning and Budget process. Lastly, they advised identifying service expansions with potential cost-sharing opportunities from higher levels of government.
The Committee deliberated on the proposed recommendations.
R. Deutschmann moved a motion to defer the recommendation pertaining to the Grant Administration Policy which was defeated.
The Committee recessed at 12:00 p.m.
The Committee reconvened at 12:50 p.m.
Regarding the review and revision of cost assumptions Sub-Committee recommendation, Chris Wilson, Manager of Corporate Budgets, clarified that staff will continue to review the numbers over the next few weeks and conduct a final review before presenting to the budget on November 30th.
In response to questions from the Committee, C. Wilson clarified that the opening balance of the TSR fund is $13.9 million.
In response to questions from the Committee with regards to the Sub-Committee recommendation on ranked list of options for service reduction, M. Goetzke indicated that the criteria for ranking would be based on the same approach used for the risk matrix from Council. He emphasized that staff are aiming for consistency in how risk is assessed, applying a uniform methodology across the organization.
In response to a question from the Committee about the possibility of moving overtime to a three-year budgeting process, W. Steffler clarified that multi-year budgeting is becoming more prevalent and is something that could be considered. Regional Chair Redman noted that the Sub-Committee did not discuss this matter.