Central Frontenac Budget – The Quest For 5.5%

Jeff Green | Feb 19, 2025

At the start of Central Frontenac Town ship's budget meeting last week, Council was faced with an $11.1 million dollar budget, a 9% tax increase over 2024. This total had already been cut by al most $2.5 million since Council met to dis cuss the budget in late December.

The cuts came from a number of sources. Some of the largest, in dollar terms, include putting off a $610,000 bridge repair on Henderson Road, cutting a $120,000 tarp on a sand dome, doing less work than originally planned at the Medical Centre, a savings of $85,000, and deferring planned hiring until later in the year.

But the largest factor was a $1.47 million transfer from township reserve funds. As Treasurer Michael McGovern explained to Council, he is planning to offset the transfer from reserves with the year end budget surplus, from unspent funds in 2024. Although that number will not be finalised until early May, after the 2024 audit has been completed, he estimates that it will be around $730,000, which will bring the pool of reserve funds to an acceptable total of $4 million.

With these changes since the December budget meeting, Council was faced with finding an additional $560,000 in savings in order to reduce the tax increase to 5%, a target that was set at the beginning of last week's meeting. that were in the budget for later this year, an executive assistant position, a deputy building inspector, and a procurement specialist for asset management.

Another 1% saving was found by cutting the fuel and gravel budgets, and some more savings came from deferring equipment purchases. This brought the total to about 6%, and any money from the year-end surplus that brings the reserve fund total over $4 million will be pulled from reserves to de crease the tax rate. It will take at least another month to complete the budget.

The next budget meeting is scheduled for March 25th, but in order to get started on purchases that will be required this year, Council approved some purchases that will definitely remain in the budget. “If we are going to be spending the money anyway, I think it pays to do it now, rather than wait, especially with the poten tial impact of tariffs,” said Councillor Su san Irwin, taking up on a point made last month by Mayor Frances Smith. Smith said that there is no huge rush to complete the budget, as long as Council pre-approved time sensitive expenditures early in the year, the only hitch being that those expenditures must be in the budget when it is finally approved. are comfortable with any service cuts or cash flow risks that may come about as a result.

With Council arriving at a budget in crease number that they are in general agreement about, Councillor Philip Smith raised a concern that some tight 2025 budgeting may have an impact on the 2026 budget. “We know we are facing a 3% increase before we even start next year, due to OPP cost increases,” said Smith, “I am just concerned that we may be setting ourselves up, when we've nickeled and dimed the treasurer this year, knowing next year is coming.”

I guess the only answer to that is that we will have a place that we can point our finger when it comes to that,” said Frances Smith, “we will be able to say that we are going to the taxpayer for an additional OPP increase, and we have no say in what those dollars are. It was a provincial responsibility that was downloaded and it should be taken back up.” “That is true, but we know this is going to happen,” said Philip Smith. “I have that concern as well,” said Su san Irwin. “I'd rather see a 6.4% increase this year, instead of such tight budgeting to get it down to 5.4 or 5.5. We could be looking at a deficit at the end of this year in place of the surplus we came out of last year with, and with the OPP and other costs coming ... we always defer and then it comes back to bite us.” “I hear you, Councillor Irwin, and I agree, but we defer every year, and that's the way it is,” said McGovern. “I was telling the Mayor the other day, this is the most depressing time of the year.” The Central Frontenac budget will likely receive final approval in early April, after the budget meeting on March 25. ■ Since 1936 Family Serving Family Over 85 Years At the end of the meeting, McGovern said that he will bring back a budget with a 5.5% increase to the March 25 meeting, and at that time he will lay out how he got to that result, so Council can decide if they A decrease of 1% came from a decision to hold off on hiring for 3 new positions