By Jeff Helsdon
LJI Reporter
The town council is aiming for a budget increase of three percent in 2025, plus an increase in OPP costs for a wage settlement that is outside the town’s control.
Council started the budget session on Nov. 18 with a $3.4 million increase in expenditures which would require a 13.69 per cent tax rate increase over 2024. This would equate to a $332 tax hike for a home with an assessment value of $242,000. Discretionary items included in the budget, which could be removed, totalled $592,000, bringing the tax rate increase down to 10.92 per cent, of a $272 increase for an average home.
Breaking the increase down further, there is a 13.68 per cent increase in the operating budget and three per cent in the capital. Planned large capital items include
• Ice resurfacer - $250,000
• Cranberry Line reconstruction - $1.8 million
• Cranberry Line storm sewers - $1.4 million
• Kinsmen pedestrian bridge - $4.7 million
• Lake Lisgar water park liner - $300,000
• Shell - $722,000 - Includes $45,000 clock tower repairs, $150,000 for waterpark roof replacement, $50,000 for the Lions’ Den canopy, and $477,000 for the indoor pool roof replacement
On the operating side, revenues are projected to increase by $1.1 million to $12.6 million, but expenditures would increase by nearly $4 million to $33.2 million. The largest increase is in labour, nearly $2 million. The second biggest increase is in contracted services, $726,333.
The report identified several budgetary pressures, of which the largest was an increase of $804,481 in policing costs. Inflationary costs for tenders are up 4.8 per cent, and inflation on wages is up three per cent. Employer payroll costs are up 16 per cent, or $415,000, to cover increased pension, EI, CPP, and associated costs. Debt principal and interest are up $255,000 or 16 per cent to total $1.8 million. Rent revenue decreased by $150,000 from Tillsonburg Hydro Inc. There is a proposed addition of 13 new full-time equivalent staff in 2025, projected at $1.9 million in 2025. This would bring the staffing total to 168.9. IT costs are up $150,000.
Discussing the policing increase further, it was revealed it was due to the provincial government's pay freeze, which the court later found was illegal. The increase is to pay retroactive pay back to 2022. Deputy Mayor Dave Beres said the issue is one all municipalities are facing and was discussed at a convention he attended. Mayor Deb Gilvesy also heard from other mayors they are facing varying significant increases.
Council spent a fair amount of time discussing the largest capital item in the budget—the Kinsmen bridge in Participark. When the bridge was last inspected in 2019, it was estimated to have one to five years of life left. The estimated $4.69-million cost is for a pre-manufactured bridge that would be dropped on the site. Estimates are the bridge has 250 to 500 users per day.
Director of Finance/Treasurer Renato Pullia explained that the bridge could be paid as a large capital item through debt financing or a combination of both. The other option was to remove the bridge, which would cost $1 to $1.5 million.
Coun. Chris Parker said the bridge is well used and decommissioning it shouldn’t be on the table.
“It’s a key connecting link to the downtown,” he added.
Gilvesy suggested new funding streams from other levels of government, mentioning that grants often come up before an election.
Pullia answered that grants have been applied twice for the project, and the problem is that it doesn’t fit any funding model. Beres said bridges fall under the Ministry of Infrastructure and pedestrian bridges aren’t high on their priority list.
“I think it would need a political push to your point there’s an election around the corner,” Pullia said.
Gilvesy noted that whenever a municipality tenders for a project, the price is inflated compared to the private sector. She suggested that the tendering process may be part of the issue.
“The Kinsmen from day one have been active on this project and feel they can do it more efficiently,” she said, adding that money raised through lotteries has restrictions that wouldn’t allow it to be used for the bridge.
Coun. Chris Parker said he understands that Tillsonburg Minor Ball wants to help with the future cost of diamond renovations.
When Gilvesy asked how the Kinsmen could take control of the project, Pullia said the bridge would need to become the club’s. He explained the town has guiding principles for tenders and doesn’t have the same latitude as a private entity.
Beres suggested a ‘buy-a-brick’ campaign but said it would likely raise less than $200,000 and added that service clubs can’t raise $4.6 million.
Gilvesy put forward a motion directing staff to prepare a report looking at funding partnerships with service clubs.
CAO Kyle Pratt informed the council that senior leadership had discussed this at a recent meeting and is working on a list of potential projects.
Council also dealt with several requests to increase staffing: a request to increase part-time staffing for the fire department for fire prevention, education, and maintenance, a part-time finance position, that a temporary full-time position in economic development be extended for three years, the addition of 3.7 full-time equivalents to public works and adding 2.8 full-time equivalents to aquatics to replace positions prior to the pool closing for construction. The council approved the positions to move to the budget but has not yet approved these.
Regarding operations positions, Gilvesy remarked that the town is assuming a lot of grass cutting with new subdivisions. She mentioned the possibility of requiring residents to cut the small section of grass between the sidewalk and the road. Director of operations Jonathan Graham said this would require looking at service levels. He said winter clearing of sidewalks is another area, noting it impacts fleet, staff, and equipment.
Parker questioned $155,000 for a feasibility study for a new arena and multi-use facility. Saying town staff control arena bookings, he added, “Based on what I’ve seen, we should be able to see if we need an additional facility or not.” That was eliminated from the budget, along with $50,000 for a culture and heritage master plan.
Council also passed a motion directing staff to submit a report on reducing, suspending, or altering the asset management plan funding for 2025.
On the long term horizon, the big projects on the books are the town hall in 2026 ($17 million), fire hall renovation and expansion in 2027 ($3 million), new public works yard in 2030 ($14 million), gymnasium and multi-use space in 2030 ($7.5 million) and a third ice pad in 2034 ($28.9 million). Do note these projects still need to be finalized and council is still reviewing the amount it will spend on a town hall. The intent is for these projects to be paid by a combination of the proceeds of the sale of land, reserves, and debt.
Presenting a motion requesting staff to reduce the budget to align with the Consumer Price Index increase of 3.08 per cent, plus the increase in OPP costs that are out of the town’s control, Parsons said, “This is a difficult budget for the people of Tillsonburg, and we need to do something.” Coun. Pete Luciani seconded the motion, which also directed staff to look at services, conferences, discretionary items, staffing, salaries, capital levy, and any other potential area to be examined to provide efficiencies and cost savings to the ratepayer.
Parker, who repeated a message from Gilvesy earlier in the meeting about budget items approved during the year, said that with the previously approved expenditures, staff would have to go back on those decisions or cut services.
“I’m fully supportive of sending it back to get rid of the stuff that is discretionary but I also think we are also going to have to do some work around this council chamber to bring this budget down,” he said.
Prior to closing the meeting, Gilvesy brought forward a motion, seconded by Parker, to review “urban design, disposing of lands adjacent to roadways, services, service levels and roadside forestry be reviewed with the goal of streamlining services, finding efficiencies and reducing pressure on labour and costs to our ratepayers.” Admitting this was a big task, she didn’t expect this to be completed for the budget but throughout the year.
The next budget meeting is Dec. 16.
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