Tough financial decisions are ahead for Midland's elected representatives. That much, everyone on council can agree on.
At a recent council meeting, a financial report exploring January through July on last year’s budget was presented, along with several staff recommendations prior to the 2024 budget discussions looming in December.
Dividing the report into three parts — tax-supported operating, rate-supported operating, and total capital program — the underlying message of the report was that the town was “in a fair position” to meet last year’s budget objectives.
Stating that although several adjustments and reconciliations needed to be completed with five months remaining, finance staff would not be anticipating a significant tax-supported operating surplus.
Several of those adjustments were in the recommendations of the report, including: an approval of $115,000 to resurface Marshall Road; combining budgets for Tiffin Park and Pete Pettersen Park ball fields to complete the latter; allocating part of parkground improvements for a water line replacement in Pete Pettersen Park; and funding $200,000 in general resurfacing through the Ontario Community Infrastructure Fund reserve.
However, the top item on the list of recommendations was what council aimed their focus at: a housekeeping transfer of just over $28,000 between budget departments for the Midland Public Library.
Coun. Bill Meridis asked CFO Lindsay Barron why the item was listed as a shortfall on the library’s insurance premium if it was quoted in the library’s annual budget, with Barron explaining that ‘shortfall’ wasn’t the correct term to use.
“The current allocation… method that we’re using, we feel is more correct,” Barron said, stating that it was just a shifting of money to the proper budgetary position, “so that they don’t have to cut their expenses by $28,000; because that’s what they would need to do if we didn’t give them this additional money.”
Meridis opposed the intent, reasoning that the $28,000 would be better utilized for upcoming budget struggles.
“I won’t be in support of this,” Meridis stated. “I think you (the library) have to find the $28,000 somewhere within your current budget going forward, because these are the decisions that we’re going to have to make coming January. We may as well start making them now, because, if we’re facing a seven per cent hike – I never… when I signed up to be a councillor, I would never have fathomed a seven per cent tax hike.”
Barron conceded Meridis’ reasoning as correct in that the municipal budget would have a surplus, but added: “I would argue that that’s not fair, given we do their insurance budget.”
“This whole thing’s not fair,” said Meridis. “These are the decisions we have to make. There’s nothing good about this.”
An amended request was included in the report, asking for a $50,000 addition to the budget for equipment. Library CEO Trish Hayes shared her concerns to council about the aged and obsolete state of the computer system which the $50,000 booster would remedy.
“Our staff computers that all the full-time staff work on are nine years old; one has failed so we’re actually using a library loaner for a senior staff member,” said Hayes. “We currently can’t use any of the computers when we do board meetings or anything like that, because they fail, so we’re starting to use our personal computers.”
Hayes added that one of the library’s three self-checkout machines was inoperable, and that a generous grant for makerspace equipment couldn’t be utilized because that department’s hand-me-down computer was too old to connect.
Said Barron: “We added that $50,000 be added to this year’s budget for equipment, and that would be funded from the library’s equipment and automation reserve.
“There’s money in the reserve to fund these equipment expenditures, and both the CEO and the board feel that waiting until February when our 2024 budget is hopefully adopted is not an option,” Barron clarified.
As the discussion wound down, Mayor Bill Gordon threw his opinion in. While praising members of the new term of council for having a critical eye to the budget, he forewarned that they were in for harder decisions ahead.
“Any time we come across a report, like the (paid parking) one we deferred tonight, or we changed about how we’re losing money in the bar business,” Gordon said, “we can’t sit there and tell the library ‘too bad’ and tell the kids they can’t have new computers when you’ve got to run the ten-year old beater. And then still try to run a profitable bar business.
“Some things that are public good, we’re never going to make profit on like the bus or the library,” he added. “We’ve just got to stop the bleeding… we need to focus on things where we can actually break even, or even better, make money.”
Gordon’s foot came down on external revenue sources, and the hesitations of previous councils unwilling to offend neighbouring municipalities.
“We’re not subsidizing our neighbours, we’re not subsidizing anybody for things that aren’t greater good items,” stated Gordon. “If you’re not a Midland taxpayer, you’re paying more. That’s going to be my stance for the next three months. We’re not a charity. We have to look after residents and their pocket books.”
A recorded vote of 8-to-1 passed the report and its recommendations, with Meridis in sole opposition.
The financial report until July 31, including staff recommendations and larger financial statement breakdowns, is available in the council agenda on the town of Midland website.
Further information on the Midland municipal budget is available on the 2024 budget page of the town website.
Council meetings are held every third Wednesday, and can be viewed on Rogers TV cable channel 53, or through the livestream on the Rogers TV website. Archives of council meetings are available through Rogers TV and on the Town of Midland’s YouTube channel.
