QUINTE WEST, Oct. 24, 2024 – The City of Quinte West will begin its 2025 Budget review process at the October 30 Special Budget Meeting, the first of three budget meetings planned.
In recent years, the City’s budget has faced significant strain due to rising inflation, growing demands from external agencies and community groups for City funding, and cuts in funding from other levels of government.
Each year the City works diligently to navigate these and other financial pressures, and remains committed to protecting its long-term financial health by:
- Using asset management plans to make data-informed decisions about maintenance and upgrades to City infrastructure, ensuring efficient spending and reducing unexpected costs.
- Updating user-rate studies for development charges, water and wastewater rates and fees and charges to cover the costs of essential services, infrastructure and growth.
- Applying for grants and funding to generate additional revenue for projects, reducing the municipal tax burden on residents and freeing up existing funds for other priorities.
Despite these efforts, as the City enters its 2025 Budget process, pressures on the budget continue to grow and may require the City to adjust its budget priorities and funding strategies.
Existing infrastructure deficit
Aging infrastructure, past inflationary pressures, and the need to balance capital spending with limiting tax rate increases have contributed to the City’s existing infrastructure deficit.
This deficit reflects a financial gap between the spending needed to maintain and upgrade City infrastructure (such as roads, bridges, and water systems), and the actual money available for these projects.
The 2025 Budget review process will explore ways the City can prioritize projects and limit expenses to address the deficit and maintain the reliability and sustainability of its infrastructure over time.
Rising policing costs
Earlier this month, the Ontario Provincial Police (OPP) issued its 2025 annual billing statement to the City. The statement reflects a significant 19% increase in policing costs, which translates to an additional $1.69 million for Quinte West in 2025.
While this cost increase for police services is consistent among all OPP municipalities, absorbing this increase will create a 2.2% increase to the City’s 2025 tax levy alone.
Provincial and federal funding pressures
Past cuts in City funding from other levels of government continue to limit the amount of money the City has to spend on 2025 operating expenses, capital projects, and to invest in reserves.
PILT revenue reductions
Payment in Lieu of Taxes (PILTs) are federal revenue payments received to offset the loss of municipal property tax revenue on the federal government’s 8 Wing/CFB Trenton property.
Between 2021 and 2024, the City has lost over $1 million per year in federal PILT funding. While one-time provincial funding helped cover these losses from 2021 to 2023, no additional support has been provided since, leaving the City with a $1 million shortfall for 2024.
The City expects a further loss of $1 million in PILT revenue in 2025, which will increase the tax burden on residents instead of on government properties.
Grant funding uncertainties
The City regularly submits applications for provincial and federal grant funding to generate new and offset lost revenue, though securing government grant funding is difficult and unpredictable.
The City’s recent grant applications for $2.2 million from the provincial Housing-Enabling Water Systems Fund for sanitary sewer improvements along Old Wooler Road, and $3.6 million from the first round of the federal Housing Accelerator Fund to support local affordable housing initiatives, were unsuccessful.
Budget engagement
Quinte West residents are welcome to provide comments or address Council as part of the budget review process. Public input can be submitted in writing to [email protected] for distribution as correspondence to Council.
Individuals that wish to address Council in-person or virtually at an upcoming Council meeting can attend any of the budget review meetings to speak during the public input period. More information about the City’s Speaking at Council process is available at quintewest.ca.
More information about the City’s budget is available at quintewest.ca/budget.