Greater Sudbury’s proposed budget to stress spending

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Despite what residents may think, Greater Sudbury still enjoys one of the lowest tax rates in Ontario, CAO Ed Archer said this week. In fact, of the five major cities in Northern Ontario, only Sault Ste. Marie has a lower rate.  

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During Wednesday’s meeting of the finance committee, Archer told councillors staff has prepared a draft budget with a projected tax increase of 6.7 per cent in 2024, which includes a 1.5 per cent special capital levy and a second levy valued at 0.5 per cent, to be used to bolster reserves.   

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This is the municipality’s first multi-year budget. Staff presented Wednesday a two-year operating budget covering 2024-25, as well as a four-year capital budget that extends to 2027.  

The budgets are beefy, more than $750 million annually. 

“The total proposed operating budget is $765 million for 2024 and $794 million for 2025. Notable features include continued emphasis on road maintenance and renewal; building economic capacity and investment readiness; investments in affordable housing; and social services,” Archer wrote in his Message from the CAO, part of the budget overview (tinyurl.com/39mukvnk).  

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“The proposed 2024-27 capital budget is $858.7 million over the next four years. Like most municipalities, Greater Sudbury historically underinvested in asset maintenance and renewal. This budget makes record capital investments to address the significant gap in asset renewal. The 2024-27 capital budget includes $244.3 million worth of capital investments in road construction and repair.” 

That total includes $37.1 million from the proposed capital levy, to be used for arterial/collector and local road improvements; as well as $34.4 million for previously approved projects and $209.9 million for new spending.  

Archer said the budget also includes significant investments in community centres and libraries, as well as the revitalization of fire and EMS halls.  

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“I would like to acknowledge the significant work and thorough analysis staff has completed to develop the city’s first multi-year budget,” said Ward 9 Coun. Deb McIntosh, chair of the finance committee. “This allows us to make forward-looking decisions, particularly when it comes to capital expenditures and asset renewal.  

“This proposed plan includes options that support the safety and well-being of our community’s most vulnerable, and improve community safety. I look forward to working with my colleagues to finalize our first multi-year budget, which will provide a clear and deliberate roadmap for what we hope to accomplish.” 

Council indicated earlier this year that the tax hike over the next two years should be limited to 4.7 per cent.  

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“If approved by council, an additional 1.5 per cent special capital levy will accelerate road renewal efforts for each year from 2024 through to 2027, and an additional 0.5 per cent levy in 2024 will strengthen reserve balances and help manage the risk of price fluctuations,” the city said following Wednesday’s meeting. “Altogether, if the approved budget also includes a special capital levy of 1.5 per cent and an additional levy of 0.5 per cent in 2024, property taxes would increase by 6.7 per cent in 2024 and 6.2 per cent in 2025.” 

While sticker shock may cause some heart palpitations, the city said the increase works out to “an additional $29 monthly for a home with a current assessment value of $350,000, or an extra $38 monthly for a home assessed at $450,000. A 6.2 per cent increase in 2025 would represent a monthly tax increase of $29 and $37, respectively.” 

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Additionally, t

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“Unlike other services, water and wastewater services are entirely supported by user rates and do not require a property tax subsidy,” the city noted. “The rate increase reflects investments in annual renewal, repair and maintenance needed to keep the system sustainable. The impact on a typical user (200 m3) is approximately $6.11 per month for 2024 and $6.37 per month for 2025.” 

The proposed water-wastewater budget is $97 million for 2024 and $102 million for 2025. That represents “record capital investment in our infrastructure to address long-standing asset renewal needs and provides a multi-year plan that advances council’s strategic plan priorities,” Archer said. 

The proposed budget also has room for a downtown events centre and the Junction East cultural hub.  

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The city said Wednesday the 2024-25 budget includes “important investments in roads, facilities and community services.” 

But the city is also facing significant pressure and mounting challenges, including inflation and supply chain disruptions; aging assets that are nearing end of life; skyrocketing construction costs and a shortage of skilled labourers; and the need to bolster reserve funds. 

Despite the challenges, staff said the 2024-27 capital budget addresses the municipality’s most critical needs.  

“Much of the city’s capital needs relate to existing infrastructure in the areas of roads; bridges; water and wastewater; facilities; and fleet,” the city stated.  

As part of the budget, council will consider 33 business cases, valued at $4.9 million in 2024 and $8.9 million the following year. If approved, they will be included in the final budget.   

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The municipal budget also incorporates the budgets of several partner organizations, including the Greater Sudbury Police Service, Conservation Sudbury, the public library, as well as Public Health Sudbury and Districts.  

Noting violent crime is on the rise in Greater Sudbury, the Greater Sudbury Police Service proposed a budget of of nearly $78.6 million — representing an increase of 8.77 per cent — in 2024, as well as a budget of $83.5 million the following year, representing a 6.92 per cent increase. 

As part of next year’s budget, the police service will recruit 14 new staff members, including an internal communications strategist; a digital evidence processor; a communications infrastructure technology programmer; an equity diversity inclusion strategist; as well as 10 new constables, which were previously approved. 

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In 2025, the service will hire six new constables, three each for the drug and sexual assault units, as well as four that were previously approved (for a total of 10 new officers). 

Conservation Sudbury presented a 2024 budget of approximately $1.27 million and a 2025 budget of about $1.37 million.   

The Greater Sudbury Public Library proposed modest budgets of nearly $9.7 million in 2024, a 4.3 per cent increase; and about $10 million in 2025, representing a 4.1 per cent increase.  

Public Health will present its budget to council in December.  

Budget deliberations are scheduled for Dec. 12, and Dec. 18-19. Council is expected to approve the final budget in December. 

The proposed budget and engagement results can be viewed at overtoyou.greatersudbury.ca. Virtual budget town halls will be held on Dec. 6 from 9:30-11 a.m. and 6:30-8 p.m. 

For more information on the operating and capital budgets, visit greatersudbury.ca/budget. 

mkkeown@postmedia.com 

X: @marykkeown 

Facebook: @mkkeown 

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