City Council approves budget that packs a 5.22% increase

Tara Jeffrey

Sarnia City Council has approved a 2024 budget that includes a property tax hike of 5.22%.

The final numbers were endorsed after a lengthy debate among council members that shaved the increase down from 8.18%. 

At the end of the day, the 2024 operating budget is $179.53 million, which is an increase of $4.27 million over 2023.  Approximately $53.5 million will be spent on capital improvements. 

The proposed 5.22 per cent increase will see the owner of a $100,000 home as assessed by MPAC inside the Transit Levy area paying a total of $1,021 in city property taxes in 2024, representing a $49 increase over 2023. Homeowners outside the transit levy area will see a $47 increase per $100,000 of assessment. 

City property taxes are one component of the overall tax bill, which also incorporates Lambton County and Ministry of Education levies

In her presentation to council, city treasurer Jane Qi pointed to a number of challenges this year, including continued high inflation; demands on the need for infrastructure and associated city services; city operating increases that are out of management’s control; and increased policing costs.

Council quickly moved to approve proposed amendments to the budget that included $542,245 in insurance renewal savings and an additional $2,463 from the updated St. Clair Conservation Authority budget.

Other amendments included:

- The transfer of $2 million from capital infrastructure reserve to Bright’s Grove Library Project - The transfer of $1 million from capital infrastructure reserve to the Ferry Dock Hill Redevelopment Project - Reducing contribution to the Tax Stabilization Reserve by $600,000 - Increasing the projection for Bluewater Power dividends by $100,000 - Reducing transfers of earned interest to the Capital Infrastructure Reserve by $1 million - Removing $1,500 for the Communities in Bloom committee - Reducing the overall Police Services Budget by $475,000

The $53.5 million in capital budget expenditures include:

- About $5.2 million on city facilities and recreation spaces including arena improvements, playground equipment replacement, and park improvements - $3.75 million in road resurfacing - $2.5 million in shoreline protection - $1 million in active transportation infrastructure - $2.7 million in transit fleet replacement - $2.5 million in zero-emission transit fleet upgrades - About $1.2 million for flood mitigation - About $8.7 million in combined sewer separation to protect the water system against extreme weather events and - About $2.6 million in watermain replacement, in addition to $4.6 million in ICIP-funded Vidal Street watermain replacement.

Attempts by Councillors Bill Dennis and Anne Marie Gillis to draw from reserves to trim the budget increase to under 5% were unsuccessful.

While a motion to approve the overall budget is no longer required as per new legislation via the Municipal Act — which gives council a 30-day timeline to pass amendments — council moved to terminate the prescribed amendment period.