2022 tax levy approved at 2.3%

By Mike Renzella

The Haldimand Press

HALDIMAND — The County has presented the final of its three major annual budgets, the 2022 Tax Supported Operating Budget. The budget adds $76,221,100 to the County levy, leading to a total residential tax impact of 2.29%, including $726,000 in contributions to the capital reserve. This equates to an additional $6.39 per month for the average residential taxpayer.

This budget covers the day-to-day operations of the County, including wages, utilities, insurance, parks, facilities, emergency services, waste collection, and more. 

“Despite significant financial challenges related to economic factors beyond the County’s control, staff have worked hard to develop a budget that is aligned with Council’s priorities and mindful of the challenges our ratepayers are facing,” said Mark Merritt, General Manager of Financial & Data Services for Haldimand.

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County CAO Craig Manley shared an overview of the budget: “This year, I would characterize the operating budget as challenging. There were a number of things that the County was facing that, for the most part, lay outside of our direct control.”

One of those challenges was the pandemic: “The good news is the grants from the government covered the direct $1.5 million cost we incurred, however the impact of the pandemic on material supply and its associated impact on inflation is something we’re continuing to grapple with.”

Another key driver outside of County control is rising insurance rates. According to Manley, that is the result of limited insurance providers who are less risk-averse: “Last year we spent just about $650,000 on insurance. This year, the total overall … was a $145,000 increase.”

Winter control challenges this past year also added up, with Manley saying that keeping sidewalks clear in particular was difficult. Additionally, a previous report outlining changes to the County’s winter control contracts was incorporated into the budget, with increased fees paid out to service contractors adding to the budget.

Another added expense in the budget is the incorporation of new legislation related to soil management, based on changing Provincial guidelines: “The Province has decided they are going to delay that a year, but we’ve already begun that transition and we don’t know with inflation and some of the other drivers what our budget is going to look like next year.”

Expenses paid to the OPP over the last year also rose by $285,000, primarily driven by increased calls for service from the community, overtime payouts, and court security costs associated with local policing.

The last key driver behind budget increases is a Council-mandated priority to increase efforts related to affordable housing options within the County, with increased support toward existing assets and new affordable housing in Dunnville, leading to a 1% increase in the overall budget.

“Between all of those things, we were starting off with a fairly substantial increase,” said Manley. “One of the things we have tried to do is continue to contain our costs, but we also benefitted by the fact that we had some salary-gapping last year simply because it was really challenging to try to hire staff during the pandemic.”

The County maintained a $4.5 million surplus from last year’s budget, with roughly half of that due to less staff hiring and, as a result, less development costs associated with new hires. Other contributors to the surplus include increased development fee revenue collected from the various developments.

“That surplus is important. It allows us to top up our contingency reserve, which is the reserve we use to deal with unforeseen things,” said Manley.

The budget initially brought a much steeper increase to taxpayers, with a projected 7% increase, however, a County press release stated that staff conducted a “rigorous review of controllable costs and only brought forward new initiatives that would negatively impact standards of service or health and safety if they were not included.”

Manley also emphasized the positive impact of increased assessment from growth in 2021 – nearly $2 million or 2.73% – that has helped alleviate the tax burden and achieve the final recommended tax increase for 2022. 

“The 2022 Tax-Supported Operating Budget represents a financially sustainable plan that responsibly manages taxpayers’ hard-earned dollars while addressing current and emergent needs of our growing community,” said Haldimand County Mayor Ken Hewitt. “Thanks to the continued hard work of staff, we have once again been able to meet the Council-approved tax increase target of 2% annually, a goal that was established in 2018 at the beginning of this term.”

Some highlights of the budget include:    

  • Introducing new, permanent staffing resources to address organizational needs, respond to growth, and meet service levels expected by residents (including up-staffing paramedic services to address response time standards)
  • Proceeding with the Council-approved reorganization of the IT division to prioritize the enhancement of public-facing services, such as online and self-serve tax information, as well as increased cybersecurity
  • Funding the continuation of successful economic development, tourism, and culture-focused activities, including the Paddle Art Tour Haldimand (PATH) and Haldimand County Geocache Tour
  • Maintaining the enhanced levels of portable washroom cleaning and facilities put in place at public parks when the pandemic started in support of tourism and increased community use
  • Increased funding for the proper asset management of existing social housing stock in the County and to financially support a new affordable housing build in Dunnville – a priority set by Council for this term.

The full budget can be viewed at on the County’s website at haldimandcounty.ca.