Georgina budget talks for 2017 will need to address millions of dollars in funding gaps

YorkRegion.com
Aug.10, 2016
By Heidi Riedner

Preparations for Georgina's 2017 budget talks reiterated a number of funding gaps facing the municipality, according to report tabled at council Wednesday.

Staff are currently preparing 2017 budget estimates with a view to maintaining current service levels and the town's existing capital asset investment, as well as the new infrastructure necessary to service population growth, according to the report.

Staff estimate development growth in 2016 is likely to achieve property assessment growth of about 1 per cent, generating approximately $345,000 in additional property tax revenues in 2017 that may be used to offset the additional operating costs to service the additional population.

Identified cost pressures, however, include an annual funding gap of more than $2.5 million to achieve the funding necessary to replace existing assets as they reach the end of their useful life span identified in the town's Asset Management Plan (2014).

Subsequently, the State of the Infrastructure Report regarding roads identified an annual funding gap of more than $3.2 million.

The Town's Development Charges Background Study (2016) identified a funding gap of about $16 million over the period from 2016 to 2025 and the need for interim financing of about $21 million to pay for the necessary capital infrastructure to provide services to new residents and businesses as the town's population grows.

The 2016 budget included an increase in tax levy funding of $360,000 to the town’s capital program, with the intent being to start a phase-in of the estimated infrastructure funding gap.

A long range financial plan will be presented to council in September, which will consolidate and further refine the town's cost pressures over the next 10 years, according to the report.

It will also formulate funding strategies addressing known funding gaps.

For 2017, the town will receive the same funding source amount as in 2016, including $350,000 under the Ontario Community Infrastructure Fund and $1,323,055 from the Federal Gas Tax Sharing Program.