An unexpected $2.7-million boost from the provincial government spared city council members having to make “some hard choices” during this year’s budget deliberations.
So described Ward 9 Coun. Deb McIntosh following Tuesday’s finance and administration committee meeting of city council, which she chaired.
“We weren’t expecting it,” she said of the province’s decision announced on Oct. 30 to increase next year’s annual Ontario Municipal Partnership Fund grant to municipalities, which included a $2.7-million increase for Greater Sudbury, bringing theirs to approximately $24 million.
“We were looking at some adjustments to services until we got that money from the province, so that made a huge difference because we were going to have to make some hard choices,” McIntosh said, adding, “It was not going to be fun.”
Interim city CAO Kevin Fowke told Sudbury.com that city staff were “wringing their hands” looking at options for budget reductions for city council’s consideration when the province announced the funding boost, which made things a lot easier.
At issue was the 7.3-per-cent tax levy increase city council approved for 2025 as part of their first multi-year budget last year. A successful motion by Mayor Paul Lefebvre in May had city staff seek ways to bring the 2025 tax levy hike down to 4.9 per cent, maximum, which required them to find $8.5 million.
In September, city council members learned that finding $8.5 million would likely require service level changes. Reducing the number of leisure service facilities, summer roads maintenance, adjusting winter maintenance services and reducing or eliminating community grants were all to be considered.
A 2025 budget update tabled for Tuesday’s meeting didn’t include any of these service level changes within the base budget, which now carries a 4.7-per-cent tax levy increase, bringing it below the 4.9-per-cent maximum Lefebvre’s motion sought.
Paired against additional spending of $487,993 approved by city council for such things as tax increment equivalent grants ($205,000) and homelessness services enhancements ($279,370), almost $9 million was found to bring in a 2025 tax levy jump of 4.7 per cent.
Alongside a $2.7-million boost from the province was $2 million in additional investment income, which are currently averaging a return of 4.87 per cent for long-term investments and 4.2 per cent in a high-interest savings account. Other funds were found in such things as cost savings by using more-efficient LED lighting ($263,925 in savings in excess of initial projections for streetlights alone) and contractual changes for salary and benefits ($777,032 in savings).
Closing the Beaver Lake and Vermillion fire stations is projected to save the city $37,611 annually, which constitutes a service-level change, but one city council previously decided on.
Although next year’s tax levy increase is currently at 4.7 per cent, McIntosh noted that the increase includes a 1.5-per-cent special tax levy ($5.51 million) toward tackling the city’s infrastructure spending gap, which was estimated last year to be $130 million annually.
(The annual special tax levy jump of 1.5 per cent, which began in 2023, has a compounding effect which will gather $86 million if it continues for five years.)
Municipal services account for 1.5 per cent of the 2025 tax levy increase ($4.8 million), which McIntosh noted is below the current rate of inflation of approximately two per cent.
Greater Sudbury Police Services’ 2025 budget increase of 6.2 per cent ($4.9 million) accounts for 1.4 per cent of the city’s 4.7-per-cent tax levy jump, which is in keeping with its trend of representing the lion’s share of recent years’ tax increases.
Although a proposed 2025 budget carrying a 4.7-per-cent tax levy increase was tabled on Tuesday, city council members have yet to vote on it.
Budget deliberations will begin on Dec. 2 and conclude when the city’s elected officials have settled on a final 2025 City of Greater Sudbury budget, including votes on whichever business cases they decide to bring forward which would alter municipal service levels.
There are tentatively 18 business cases that could come forward during next month’s deliberations, but only those a city council member decides to champion.
Of these business cases, 15 are for service level additions and three are for reductions. The 2025 budget impact of adopting all 15 service-level improvements would be $3.28 million, which would increase the tax levy by almost one percentage point to 5.7 per cent. Adopting all three budget reductions would cut $379,592 from the 2025 tax levy.
The first budget meeting is scheduled to take place on Dec. 2 beginning at 1 p.m. The meeting can be viewed in-person in council chambers at Tom Davies Square or livestreamed by clicking here. Subsequent meetings will take place at the same time and location the following two days, if necessary, with additional meetings called in the event city council members haven’t made their final decision.
Sudbury.com will publish more on the 18 business cases city council members might choose to debate prior to budget deliberations commencing.
Tyler Clarke covers city hall and political affairs for Sudbury.com.
