The BMRA has observed Council’s intent to apply prudent financial management.  This is what we would expect from our elected officials.

A big tax increase was avoided

The original budget proposal projected a 9.6% tax increase.  This has been reduced to 2.5%.  This reduction was accomplished by directing $1.3 million of the 2023 budget surplus to the Asset Management Reserves.

The reserves are vital to ensure that funding is available to maintain the Town’s infrastructure.  But the reserves are under pressure from construction cost inflation.  The original proposal looked to the 2024 tax levy to add to the reserves.  However, the BMRA argued for directing the 2023 surplus to the reserves. We are pleased to see that was the course of action followed.

Nevertheless, we recognize that the Town will need more Asset Management Reserve funding into the future.  Council has to determine how that is to be covered in the years ahead.  

The 2023 surplus was an anomoly - it came from higher than expected interest revenue, and lower staff costs because some senior positions remained vacant.  These anomolies are unlikely to recur in 2024.

Council & Staff must clarify their top priorities

The Town Council and Staff  paid attention to the difference between the "must do's", and the "nice-to-do's".  They acknowledged the economic pressures everyone is feeling today, and especially considered how Grey County’s 6.2% tax increase will impact residents.

So, some consulting proposals were declined, and other discretionary spending programs were dropped. One example is the proposed Town Natural Asset and Urban Canopy Division.  In our New Year Message to our members, we said that we fully support efforts to protect our natural environment that we all cherish, in a practical and cost effective manner.  And we know that our tree canopy is a vital and valued part of our environment.

However, the proposal included in the supplemental budget package entailed the hiring of two new staff positions, and projected operating costs for ongoing tree maintenance on public lands of as much as $3 million when fully operational. That would represent about 15% or the current Town tax levy funds.  

At this time of significant financial pressure, Council made the appropriate decision to spend the time required in 2024 to scope out the optimal Urban Canopy strategy, which should, among other things, find supporting revenue from non-taxation sources.

We will be following this initiative as it plays out in 2024.  

There are gaps & issues to address

The 2024 budget is still being updated based on the Council review, and a new draft will be available at the end of January. There will be a final Public session in early March, after which the budget will be finalized.  We believe that there remain some gaps and issues that should be addressed, either with this year's final budget, or for next year's budget exercise.  These include;

1. An Enhanced Executive Summary
   We contine to ask for a Budget Executive Summary that provides a "Coles Notes” view of the key budget drivers.  This will help Town residents grasp the most important issues.
   
   In particular, it should highlight the critical differences between the 2023 actual year end projections versus the 2024 budgeted spending. That gives a clearer picture of the year over year changes for the various budget categories, with explanations for those changes.
   
   

2. Five Year Capital Sources and Uses Summary
   Can TBM pay for the required infrastructure build to support our growth?  And where will the money come from ?  These are the most important questions we face.  
   
   We have requested a five year projection, that would detail the anticipated capital spend for each year, and disclose where the funds will come from.  THere are a variety of funding sources, including reserves, Development Charges, upper tier government grants and debt.  Knowing where the funds will come from would give us a much clearer picture of the Town's financial future.
   
   

3. Avoid Cost Cutting Measures that May be Shortsighted
   Managing and limiting spending is usually wise, but not always.  There will always be situations where thoughtful spending today can provide benefits well into the future.   For example  the proposed Stormwater / Natural Infrastructure Study was declined, but should be reconsidered. Managing stormwater is a Town-wide concern, and ensuring that the natural environment is best enabled to help manage stormwater will provide environmental, cost and "liveability" benefits.
   
   Plus, the $500,000 cost for the study would be funded with $100,000 out of the current Asset Replacement Reserves, and critically, with $400,000 in grants from upper tier governments.   Council should reconsider this proposal and give its approval.
   
   

4. Application of Corporate Structure Review Impacts
   What are the Town’s core set of services?  What resources are needed to deliver those services?  And what is the most efficient way to deliver those services? The Corporate Structure and Service Delivery Review was undertaken to answer those questions.
   
   The intent was to have the analysis completed earlier in 2023 so that the recommendations could have impacted the 2024 budget in a substantial manner. Unfortunately, the Review was not completed in time to incorporate the costs and benefits into the budget.  
   
   Over the course of 2024, the Review’s recommendations will be adopted, and the financial implications will be felt.
   
   This will be a key focus for the  BMRA Budget Review Committee this year.
   
   

5. Create of a 20 Page Budget Document, not 250 Pages
   The Town Finance Department creates a truly exhaustive budget document that regularly covers 250 pages. That is certainly too much for Town residents to absorb, and we question whether our Council should be spending its time in a line-by-line review of a 250 page document.
   
   Production of a 20 - 25 page budget document, that focuses on the set of budget decisions that will truly make a difference to the Town's financial management and health, and would lead to a more useful application of Council and Staff time. We will continue to push for a more streamlined budget review process for the 2025 fiscal year.
   

What’s next?

The BMRA Budget Review Committee will publish an updated summary after the process is completed and the budget document is finalized.