CITY OF ORILLIA
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At its meeting on May 14, 2018, Council ratified tax policies that result in a blended residential tax rate of 2.9 per cent while approving an additional $645,000 contribution to reserves due to higher than expected assessment growth.
The blended tax rate is the net effect of the municipal tax levy increase and the education tax rates set by the Province.
“We are pleased that the City is in a financial position to maintain a low tax rate for our residents as we continue to grow and build infrastructure,” said Mayor Steve Clarke. “Making additional contributions to the reserves enables us to prepare for future financial responsibilities.”
The 2018 budget includes $750,000 for assessment growth related to building activity minus reductions for assessment appeals. The actual change to assessment is approximately $1,395,000. While the value is significantly higher than anticipated, Council chose to allocate the difference to the Tax Rate Stabilization Reserve as some properties making up a share of this growth are currently under appeal through the Municipal Property Assessment Corporation (MPAC), which could result in a negative impact.
Earlier in April, Council also authorized an additional $783,000 contribution to reserves as a result of a financial surplus from 2017 (pending final audit). Although there were significant expenses that went over budget including tax appeals and winter control costs in 2017, these were offset by positive results in several areas of the City including a combined $1.1 million in cost savings and additional revenues through various departments and additional grant funding from the province.
“We had a challenging year in 2017 with additional winter control and transit costs as well as significant tax appeals, but we also had some positives resulting in a surplus. We commend staff for their diligent efforts to make sure tax dollars are spent responsibly,” said Mayor Clarke.
In addition, labour negotiations for the Ontario Provincial Police covering multiple years were settled in 2017. This resulted in a savings of $315,000 as the City had been setting aside funds as a payable in 2015 and 2016 based on anticipated costs. As a result, the operating surplus of $468,000 will be transferred to the Tax Rate Stabilization Reserve and additional savings set aside for policing expenditures be transferred to the Major Capital Facilities Reserve.
“Our past practice is to return surpluses to the Tax Rate Stabilization Reserve. This reserve is intended to be used to offset any year-end deficits and other major unbudgeted operating expenses,” said Jim Lang, City Treasurer. “The Major Capital Facilities Reserve is and will be funding several major projects. Any contributions into this reserve will assist in the funding of these projects.”
The City of Orillia is a city of 31,000 people in the heart of Ontario’s Lake Country on the shores of Lake Couchiching and Lake Simcoe. Visit our website at orillia.ca
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