By Pam Wright
Local Journalism Initiative Reporter
Chatham-Kent is changing the way it budgets taxpayer dollars and is moving to a new multi-year budget format.
The move to develop a municipal budget for 2024 to 2027, was approved by council at the April 3 meeting.
Multi-year budgeting has become a municipal trend in finance. The City of London, for example, has utilized multi-year budgeting for the past eight years and is presently heading into its next round of the multi-year strategy.
In a presentation to council, Steve Brown, director of budget and performance services, told council there are many benefits to the concept.
Alignment of long-term goals with Chatham-Kent’s strategic plan, greater certainty in spending and improved accountability are on the plus side, Brown explained.
While there are concerns about how a municipal election could affect a four-year plan, Brown said the plan would be developed to straddle an election year.
“The lag time in the budget cycle gives newly elected council the opportunity to educate itself, develop a strategic plan and priorities, and direct administration to implement various initiatives,” Brown said.
Some of the budget process will remain the same, he added, with an opening night and online sessions for public consultation, so community groups can provide input.
“It can’t be stressed enough that the implementation of a multi-year budget is not a one-time exercise,” Brown explained, but one that must be reviewed and adopted annually.
Administration is recommending developing a draft operating budget for the next four years, at the net tax rate of below the estimated cost of inflation. There will also be a 0.5 per cent increase for the rate stabilization reserve that was created in 2020, and a 1.5 per cent increase for the capital asset plan.
The concept of multi-year budgeting was brought forward by Wallaceburg Coun. Carmen McGregor in 2020. Council then directed administration to probe the issue examining the pros and cons.
Chatham Coun. Brock McGregor who chaired the municipality’s budget committee for the past two years, said he is glad to see the effort finally “up and running.
“It is a real opportunity for the community in understanding what tax changes are going to look like over a period of time,” McGregor said, noting it’s beneficial for both businesses and homeowners.
“I think it’s fortunate we’re taking this step, after we’ve watched other communities do it,” he said, adding there’s still going to be an opportunity for community engagement.
Training on the new process is slated for municipal employees and that will be made available to elected officials as well.
“It’s not just a councillor issue, it’s for staff as well,” Chief Administrative Officer Michael Duben said of the education piece.
“I think it will be new to everybody but once we get into it we’ll realize it’s really not all that different,” Duben said. “We’ll have to work through this together, it is something new for all of us.”
Two online public surveys on the new approach will take on Let’s Talk CK, one in May and another in September.
Opening night for this budget 2024 is scheduled for Nov. 15 at the Chatham Civic Centre beginning at 6 p.m. Online community consultations will take place Nov. 22 at 12 p.m. and Nov. 23 at 7 p.m., with budget deliberations beginning held Nov, 28, 29 and 30. More dates will be added in December if needed.
