Connie MacDonald, Chief Communications and Strategy Officer, and Craig Dyer, Commissioner, Corporate Services and Chief Financial Officer provided a presentation outlining the strategic plan, economic environment, 2024 budget overview, and the budget review process and timetable.
In response to a question from the Committee, C. MacDonald clarified that performance development plans are individualized plans held by each regional staff leader. These plans set out the actions they are responsible for in alignment with the annual strategic plan. Whereas, ongoing performance measurement tracking and services involves quarterly reports to track progress towards the annual plan and budget, along with providing community updates on the progress of the strategic plan's achievements.
C. Dyer continued the presentation and responded to Councillor questions regarding inflation rates. He emphasized that while current inflation rates may be lower than they were a year ago, this does not translate to lower prices. Instead, it signifies that prices have risen more than the previous rate, stressing the importance of the cumulative impact of inflation.
C. Dyer mentioned that the staff would be offering additional details regarding the cost savings achieved by transitioning to electric vehicles in the region to the Committee.
In response to a question from the Committee, C. Dyer highlighted the increase in eligible development growth within the region in 2023 compared to the previous year. This increase primarily stems from a notable rise in the issuance of industrial building permits eligible for discounts in 2023, contrasting with the figures from 2022. Additionally, he clarified that exemptions for building affordable homes are not applicable in 2023 due to their coverage under the Development Charges Act; they do not fall under discretionary exemptions that the region must finance.
C. Dyer noted the anticipated implications of Bill 23 on development charges. These effects will present several impacts, including the requirement for a 5-year phase-in of development charge rates when a new bylaw is introduced. This phased rate rollout carries associated costs for the municipality. While a background study has not yet been conducted, it will be brought to the Administration and Finance Committee in early 2024. The second impact pertains to mandatory discounts applicable to rental housing, contingent on unit size, affecting the development charges collected. Additionally, certain costs that were previously eligible for development charge recovery are no longer eligible, notably expenses related to studies. Staff are still awaiting clarification from the Province on the definitions of affordable and attainable housing.
C. Dyer continued the presentation and provided a high level overview of the 2024 budget.
In response to inquiries, C. Dyer clarified that calculating a tax bill involves two key components: the municipal levy and the assessment. The fact that property assessments are based on a January 1, 2016 value has no bearing on the region's levy and does not impact the region's budget. Furthermore, the longer assessments remain outdated, the greater the potential for some properties to overpay on taxes while others underpay. Delaying a reassessment update increases the likelihood of significant shifts in tax burdens across different properties, resulting in a misalignment of tax payments at the property level.