Norm Lum, Director, Business and Financial Planning, stated that the 2021 net tax operating budget totals just under $1.2B and that the Regionally financed external agencies represent 44 per cent of the net tax levy. He reviewed the core principles used to develop the 2021 budget and noted that the budget includes $6.4M in efficiencies ($2.5M in cost savings and $3.9M in cost avoidance) achieved through the continuous improvement program.
Norm Lum addressed two funding announcements made by the provincial government. The first being $3.1M for Anti-Human Sex Trafficking which is to be used in five years. Staff are recommending that one-fifth of the funding or $620,740 be applied to the 2021 budget for the community Investment service. The second being $5M in one-time funding to offset the funding reduction to the Early Years and Childcare program. Staff are recommending that $2.5M be used to offset the 2021 Budget and the remainder ($3.8M) be addressed in the 2022 budget. He identified three options to reduce the proposed net tax levy increase from 3.2 per cent (or the equivalent of a 1.3 per cent tax impact), to a net tax levy of 2.87 per cent (or 1.2 per cent property tax impact). He noted that the reduction would result in an average annual impact of $58 to the resident or $103 for the average small business owner.
Norm Lum provided an overview of the 2021 initiatives and the utility rate program.
Councillor Saito inquired how much the net tax levy and property tax impact would be if the 1 per cent infrastructure levy was removed from the 2021 budget. Norm Lum responded that with the additional reductions recommended, the tax levy increase would be decreased to 1.9 per cent or an average of .76 per cent property tax impact. Councillor Saito suggested that the 1 per cent tax levy be removed from the 2021 budget and reinstated in the 2022 budget.
Councillor Palleschi requested clarification regarding the $620,740 from the provincial grant for the Anti-Human Sex Trafficking that will be utilized for the Community Investment service. Norm Lum provided clarification and noted that the Anti-Human Sex Trafficking program is run through the Community Investment service.
In response to questions regarding the deferral of the 1 per cent infrastructure levy, Janice Baker, Chief Administrative Officer, stated that the initiatives are considered critical, that they were previously approved by Council. Stephen VanOfwegen, Commissioner of Finance and Chief Financial Officer, stated that the infrastructure levy is needed to maintain a state of good repair and that staff could report on how that deferral would impact the overall infrastructure.
Councillor Parrish raised concern that staff are being requested to provide numbers spontaneously and placed a motion to defer the 2021 Operating and Capital Budget and related matters to the February 11, 2021 Regional Council Budget meeting.