Town of Parry Sound Council will meet on Tuesday to review and presumably approve the budget overview included in the council agenda package. You can access the full agenda package at the Town’s website through this link. I have extracted the Budget itself which can be accessed through this link. The only difference is that the document at the Town’s website includes the agenda package documentation presented below.

The net/net is that taxes are expected to rise 2.95% in 2022. I will be interested to see the budget gymnastics required in a couple of years when the MPAC re-assessments are active. Houses in the Town of Parry Sound have literally doubled and tripled in price, at least houses that five years ago were priced in the $100,000 to $300,000 range. This will need to be reflected in the MPAC assessments. While taxes shouldn’t rise for most people the tax rate will need very serious adjustment. We will probably see a drop in the tax rates while individual taxes rise.

Council Meeting Agenda (Abridged)

Special Council Meeting Agenda – February 22, 2022

Resolutions and Direction to Staff
2.1.1 – 2022 Operating Budget.

That the 2022 Operating and Capital Budgets be approved; and That the Budget By-law be brought forward to a future Council meeting for ratification.

2022 Operating Budget
That the 2022 Operating and Capital Budgets be approved; and That the Budget By-law be brought forward to a future Council meeting for ratification.
Identify Relationship to Strategic Priorities:
Core Service – Yes
Key Stretch Goal or Core Service Improvement Goal – No
New Service, Project or Program – No
This Item Relate to Council’s Strategic Priorities – Yes

The detailed Budget Package includes details with respect to the following:
1. 2022 Operating Budget;
2. 2022 Capital Budget; and
3. Funding requests for Council’s consideration.

The property tax increase required to fund Town operations (1.15%) is below the guidelines set by Council at the October 5th meeting between 3.5% and 7.0%.

Council also established a policy requiring an annual funding contribution from taxation dedicated to the repair and replacement of aging infrastructure. The policy establishes an annual tax increase (1.8%) to fund infrastructure. The combined tax increase for these two (2) items in 2022 is 2.95% (1.15% + 1.8%).

During the special meeting of Council on February 8, 2022, Council received the Draft Capital Budget for information purposes and directed staff to bring the forward the Capital Budget for approval when the operating budget is brought forward for discussion. The 2022 budget including Operating and Capital requires a total of $12,127,777 in municipal taxes and $73,984 is generated from assessment growth. Therefore, the Town needs to raise an additional $344,974. To raise the additional $344,974, an increase of 1.15% for operations and 1.8% for infrastructure is necessary for a total increase of 2.95% over 2021 property taxation (net growth).

Staff Recommendation:
That Council approve the 2022 Operating and Capital Budget with the Budget By-Law to come forward at a future meeting of Council.

Advantages and/or Disadvantages of Staff Recommendation:
The recommended budget maintains service levels with only a modest increase in taxes to fund Town operations. The tax increase is below the low end of the range set by Council and below the current rate of inflation.
N/A Cost/Financial
Included in Current Budget:
N/A Attachments:
Att#1 Operating and Capital Budget Binder