With 2020 budget deliberations happening this week, councillors are preparing for some difficult decisions.
During the draft budget presentation on January 15, administration proposed a tax increase of 4.99 per cent. The draft budget increase consists of 1.49 per cent for municipal downloads, one per cent increase in the annual funding for infrastructure, $550,000 for the second year of the Storm Sewer Funding Plan, $517,000 for the Disaster Mitigation and Adaptation Fund and previous council decisions.
Since draft budget night, several open houses were held across Chatham-Kent as a way for residents to learn more about the budget process, the proposed tax increase as well as offer their feedback to councillors and municipal staff. Many councillors said residents have made it clear that they are unhappy with the proposed increase of nearly five per cent.
This year marks the sixth budget for South Kent Councillor Trevor Thompson. He said its the hardest budget he's ever dealt with and by far the largest proposed increase he's seen. He also said the possibility of a 4.99 per cent increase has generated a notable amount of resident engagement.
"Without a doubt, I think that's exactly what happened. I think people were very much interested to know where the five per cent was going, where the increase was coming from and how we can try and reduce that number," he said."I've enjoyed the last handful of budgets... the first year I was elected we brought in a zero [per cent increase] so that was a point of pride for me. This five [per cent] really stings and not something I can support by any stretch."
North Kent Councillor Jamie McGrail is one of the many councillors who will be taking part in their second-ever budget deliberations. The 2020 budget is a stark increase from McGrail's first budget in 2019 where the proposed tax increase was between 1.70 and 2.03 per cent.
Like Thompson, McGrail said she's been taking a lot of questions and having a lot of conversations with residents, not only in her ward but from across Chatham-Kent. With many residents expressing concern that a 4.99 per cent increase is unrealistic, McGrail said this year's deliberations will be a balancing act of what's a necessity and what isn't.
"I keep telling [residents, the 4.99 per cent,] it's a starting point," she said. "This is where we really need to come down to what we need and what we want."
Chatham Councillor Karen Kirkwood-Whyte agreed that the 2020 deliberations will produce some difficult discussions about wants and needs.
"It's kind of like a bundt cake complete with frosting and candles," said Kirkwood-Whyte. "You look at the frosting and you look at the candles and you say 'well maybe we can do without that'. But, I think what some of us don't have the opportunity to do, and what [municipal] staff do on a regular basis, is to look at the ingredients in the cake itself and really try and determine if there are any savings to be generated."
One of the wants versus needs that will come up for discussion is the proposal to hire eight more municipal staff including a dental assistant, dental hygienist, dentist, manager of drainage services, manager of engineering, human resources generalist, business solutions analyst and engineering technologist.
Thompson said, given the high tax increase proposal, he'll have a "hard time" supporting the staffing recommendations. Both Kirkwood-Whyte and McGrail agreed that the recommendations are an area of the budget that will definitely have to be better explained before being considered.
"Three of them are mandated by the province for the new dental program that the provincial government said we must do," explained Kirkwood-Whyte. "There are other positions that are and will be justified through presentations made by staff. We're going to have to listen to that justification and determine if it's a need to do or a nice to do."
McGrail she's also hoping municipal reserves get examined, especially ones that she feels might be outdated.
"We put lots in reserves sometime. Maybe this time, because of the 4.99 [per cent increease], instead of putting it into a reserve, we put it into money for the taxes and bring it down that way," said McGrail.
For Thompson, budget deliberations are sure to be full of challenges on whether or not to cut certain services or put funding for certain items on hold this year.
"I think really more than anything they are philosophical challenges. Do we lean in and make those investments in the community that people want to see through things like infrastructure... child care subsidies? Or do we start making the cuts that the provincial government has signalled they're going to make?" he questioned.
It's those provincial cuts and provincial downloads that have put council in a tough spot with the budget. The provincial downloads occur when the Ontario government shifts sources of funding from the provincial income and sales tax onto municipal taxpayers. This year, Chatham-Kent has to factor in $2.3 million worth of downloads.
McGrail said this greatly impacts the amount of room councillors have to work with when deliberating the budget numbers.
"I want people to understand that right off the bat, 1.49 per cent is from provincial downloading... this isn't new. Provincial downloading is not new," explained McGrail. "What is new about this is the amount of provincial downloading, and it's mandatory."
Although the open houses are complete, there is still a chance for residents to get their voices heard. Deputations up to five minutes long are allowed every night of deliberations, which start at 6 p.m. on Tuesday at the Civic Centre.
"I want [residents] to know that they are heard more than anything else. It's not to say we always agree or some people's thoughts are even possible or realistic but, I understand the pain in the community and the concern," said Thompson. "I want people to know when any of the councillors go into budget... we have heard and we have talked to you and that hasn't fallen on deaf ears. We have to lead and we have to make imperfect decisions for an imperfect world."