Scugog Councillors approve budget target increase for 2025

DARRYL KNIGHT The Standard

SCUGOG: At the Township of Scugog’s council meeting, on Monday, October 28th, Director of Finance, Laura Barta presented the 2025 budget guidelines and proposed a target to help shape the upcoming fiscal year.

Following a motion by Councillor Harold Wright and seconded by Regional Councillor Ian McDougall, council approved a budget target increase, of up to 2 percent, for Scugog’s share of the overall tax bill.

The 2 percent cap represents a balance between managing the community’s service needs and addressing public concerns over rising taxes. As Ms. Barta highlighted, the Township’s approach focuses on maintaining current service levels while managing rising infrastructure costs and inflationary pressures. Staff aim to prepare a lean budget, stripping out non-essential expenses, in order to prioritize core services.

One key element of the budget includes a 4 percent transfer to Capital Reserves, adding $771,700 to the operating budget. This transfer supports the long-term capital program, with priority on maintaining infrastructure, especially Scugog’s aging roadways. According to the 2024 State of the Infrastructure (SOTI) report, Scugog’s road network, which comprises 76 percent of the Township’s total infrastructure, has an estimated replacement value of $771 million. This figure marks a significant increase from $546 million in 2022, attributed to inflation and a more comprehensive inspection cycle.

Despite these efforts, the SOTI report indicates an infrastructure deficit of $268 million, with $181 million in immediate road repair needs. While the council is focused on reducing this deficit, Ms. Barta acknowledged, fully addressing it, in the short to medium term, is unrealistic, due to limited funding and resources. Instead, the goal is a gradual, sustainable approach to infrastructure investment.

Further budget pressures stem from legislative changes expected in 2025. These include: the anticipated transfer of planning responsibilities, from Durham Region to the Township; updates to the Site Plan Alteration By-law; and costs associated with accepting surety bonds, for development projects. As development in Scugog continues, new infrastructure will require additional funds for upkeep which is expected to place ongoing demands on the Township’s resources.

To manage these challenges, the Township has expanded its staff in key areas, such as building inspection and planning, to support the increased workload from growth. These hires are expected to

Scugog Councillors approve budget target increase for 2025

DARRYL KNIGHT The Standard

SCUGOG: At the Township of Scugog’s council meeting, on Monday, October 28th, Director of Finance, Laura Barta presented the 2025 budget guidelines and proposed a target to help shape the upcoming fiscal year.

Following a motion by Councillor Harold Wright and seconded by Regional Councillor Ian McDougall, council approved a budget target increase, of up to 2 percent, for Scugog’s share of the overall tax bill.

The 2 percent cap represents a balance between managing the community’s service needs and addressing public concerns over rising taxes. As Ms. Barta highlighted, the Township’s approach focuses on maintaining current service levels while managing rising infrastructure costs and inflationary pressures. Staff aim to prepare a lean budget, stripping out non-essential expenses, in order to prioritize core services.

One key element of the budget includes a 4 percent transfer to Capital Reserves, adding $771,700 to the operating budget. This transfer supports the long-term capital program, with priority on maintaining infrastructure, especially Scugog’s aging roadways. According to the 2024 State of the Infrastructure (SOTI) report, Scugog’s road network, which comprises 76 percent of the Township’s total infrastructure, has an estimated replacement value of $771 million. This figure marks a significant increase from $546 million in 2022, attributed to inflation and a more comprehensive inspection cycle.

Despite these efforts, the SOTI report indicates an infrastructure deficit of $268 million, with $181 million in immediate road repair needs. While the council is focused on reducing this deficit, Ms. Barta acknowledged, fully addressing it, in the short to medium term, is unrealistic, due to limited funding and resources. Instead, the goal is a gradual, sustainable approach to infrastructure investment.

Further budget pressures stem from legislative changes expected in 2025. These include: the anticipated transfer of planning responsibilities, from Durham Region to the Township; updates to the Site Plan Alteration By-law; and costs associated with accepting surety bonds, for development projects. As development in Scugog continues, new infrastructure will require additional funds for upkeep which is expected to place ongoing demands on the Township’s resources.

To manage these challenges, the Township has expanded its staff in key areas, such as building inspection and planning, to support the increased workload from growth. These hires are expected to be cost-neutral, due to updated planning fees, though other staffing changes will impact the operating budget.

Scugog’s primary revenue sources remain property taxes, grants, and user fees, with property taxes comprising 74 percent of the Township’s 2024 operating budget. In the coming year, staff expect higher-than-anticipated investment income, thanks to delayed interest rate cuts by the Bank of Canada which could provide around $100,000 to counter inflation-driven expenses.

User fees also contribute significantly, and they will be recalibrated, based on inflation and recent reviews by Hemson Consulting. These updates aim to offset the cost of public services, sharing the financial burden more equitably, between taxpayers and service users.

Looking ahead, the council and staff are tasked with creating a 2025 operating budget which navigates ongoing inflationary pressures while minimizing tax impacts on residents. Council’s approval of the 2 percent target will guide staff in finalizing the draft budget, expected to be completed by early next year.