The City of Dryden is out with its draft 2020 operating and capital budget.
The balanced budget contains no property tax hike, no water and sewer rate increases and no reduction in service levels.
However, Treasurer Steven Lansdell-Roll says it would be prudent and wise for Council to look at a small tax hike.
That’s because there is limited capital work planned due to debt repayments totalling $3.38-million next year
Lansdell-Roll notes they remain on track in their debt repayment strategy, noting 2020 will be one the final years of major payments.
The City is also facing considerable pressures:
-$106,000 reduction in Ontario Municipal Partnership Fund
-$136,5000 reduction in Water and Sewer revenues due to reduced consumption
-Increased labour costs based on collective agreements
-Increased contracted services and licensing
-Increase in municipal levy from outside agencies.
Capital spending is set at $6.6-million, with several major projects moved to the back burner.
However, only $337,000 of that will come from the operational budget.
$4.8-million would come from external sources such as federal and provincial funding, while the other $1.4-million will be pulled from City reserves.
Lansdell-Roll stresses building up reserves is part of their strategic plan and this budget goes against that.
The estimates a $3,001,896 reserve fund balance at the end of 2020, down from the 2019 year-end balance of $3,648,326.
Council hopes to pass the budget in December.
