Council preparing to tackle 2025 budget
October 11, 2024 at 3:59 AM
Much like the households that make up Fort Erie, the municipality itself is having to make tough choices after a period of high inflation and soaring construction costs.
But town staff and Fort Erie’s mayor are telling residents they’re doing everything they can to provide a 2025 budget that’s fair.
“I want to assure the public that we’re working diligently to make sure this is a good budget that will result in sustainable operation municipally, but something that is affordable for our residents,” Mayor Wayne Redekop said as councillors dealt with a report setting the schedule for upcoming budget deliberations.
In addition to the meeting schedule, the report also highlighted some early estimates as well as challenges the town is facing both on the revenue side and with expenses. Early estimates have the town losing about $207,000 in grant money through the Ontario Municipal Partnership Fund, as well as an estimated $750,000 decrease in bank and investment income.
On the expenses side, wages and benefits are set to increase $1.5 million, and an additional $580,000 in capital reserve contributions are needed to address inflation.
Altogether, the report said the 2025 base budget comes with a 4.95 per cent increase after assessment growth.
Other budget items include an initial 10.75 per cent base budget increase to the water and wastewater operating budget. The report said treatment cost increases are having the biggest impact on the budget, making up 8.08 per cent of the 10.75 per cent increase.
The report also warns of the challenges faced on the capital budget.
“The cost of doing business as usual is quickly becoming unsustainable,” it reads.
“Over the past two budget cycles, the linear infrastructure capital budget (i.e., road, watermains, sanitary, storm sewers) has essentially been halved in the number of projects the Town can complete within the existing budget envelope despite increasing contributions to the related reserves.”
Despite the challenges they’re facing, Redekop credited town staff with the budget-related work they do throughout the year.
“Staff will continue to look for ways that they can ensure the financial situation of the municipality is stable, that the needs of the residents are met and we can do that in a fiscally responsible fashion,” Redekop said.
CAO Chris McQueen also told councillors that he and other chief administrators in the region have been meeting with their regional counterpart Ron Tripp to advocate for a diligent review of the Niagara Region budget.
Budget deliberations kick off Monday, November 25 with the capital budget and forecast. Meetings will continue through the winter and are expected to be wrapped up by late February.
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About The Author
Luke Edwards
Luke Edwards is a longtime Niagara community journalist who has covered a variety of beats, including business, agriculture, the wine industry and politics. When not writing, there's a good chance he can be found at a baseball diamond or curling rink.
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