A new reserve fund will lower Cobourg tax bill increases for 2022 to 2.9 % from 4.1%.
At this week's council meeting, Treasurer Ian Davey reported on the establishment of the Tax Rate Stabilization Reserve that was made possible by his exhaustive search for possible savings from the 2021 budget that could be used to establish the reserve, following direction from council to undertake the initiative during their budget meetings.
The $305,000 transfer to the reserve comes from staff vacancies – salaries and benefits that were budgeted for, set aside and then unused for whatever reason and for whatever time.
Davey identified six staff positions in corporate services, public works, planning and community services. Amounts saved and put into reserve ranged from $10,500 to $85,000.
“I think this is a really important and very positive initiative. I thank Mr. Davey for taking the time to go through the funds from the 2021 budget and identify this funding of $305,000 that can be added to this reserve,” Councillor Emily Chorley commented.
Deputy Mayor Suzanne Seguin's motion directed $300,000 of the reserve into the 2022 Operating Budget of $26,052,155. Without that transfer, the original motion would have approved an Operating Budget that represented a 6.3% increase over 2021 – and a 4.1% net increase after allowing for New Assessment Growth of 2.2%.
Seguin's motion also called for approval of the $15,561,973 Capital Budget.
The remaining $5,000 will stay in the reserve fund, Davey said, possibly to be built on by the time 2023 budget deliberations begin.
“I am so pleased council, working with our financial team, have identified this opportunity to bring this tax levy in under target by using funds that have already been collected from our ratepayers,” Chorley said.
“Going through this process has been really interesting, and I want to thank Councillor Chorley for asking Mr. Davey to look into this,” Deputy Mayor Seguin said.
“I can finally put my budget binder on the shelf.”