Goderich Council continues to invest in supporting infrastructure rehabilitation

Recently the Town of Goderich’s 2025 operational budget has been approved for key capital projects.

At the April 28 Council meeting, decisions were made to remain committed to saving funds to support future infrastructure rehabilitation and replacement needs.

Treasurer Deanna Hastie proposed a one per cent tax increase to help balance the budget for the cost of major projects that Goderich Council has approved to improve infrastructure and continue to deliver services.

These projects include:

• Rebuilding Downtown Infrastructure Project (2-year project) $5,533,945 for 2025

• Replacement of Mater Control Centre and HVAC system at the water plant $4,409,375

• Pollution Control Outfall replacement $500,000

• Suncoast Drive Road Reconstruction $2,556,191

• Other roadwork $256,001

• Fire Rescue Truck $900,000

• Bricking/cladding at the Maitland Recreation Centre $525,000

• Replacement of the stairway to North Harbour Road $600,000

• New columbarium for the cemetery $45,000

• Renovations at the Maitland Valley Medical Centre $215,000

• Facility work, equipment and vehicle replacements $1,798,800

The 2025 budget includes $22,362,226 in operating costs.

According to Hastie’s report to Council, the proposed funding to keep the budget at balance would come from a carry-forward of the 2024 surplus valued at $253,447.

To further balance the budget, Hastie recommended a one per cent tax rate increase for residents to bring $102,512 more in funds to the table.

Hastie reviewed the proportions of tax classes for the Town of Goderich to explain the impact on taxpayers.

Residential tax class is over 79 per cent of the Town’s assessment, while commercial is valued at 15 per cent.

“The residential taxpayer really does bear the brunt of the tax needs in the budget,” admitted Hastie, who stressed that the Town of Goderich is also responsible for collecting taxes for the School Board and the County of Huron.

“We collect those tax revenues and pass them on to those two other organizations. When you receive your bill in the mail, you must remember it doesn’t all go to the Town [of Goderich].”

Following much discussion on the state of aging infrastructure in the town, the necessary reconstruction needed, as well as the economic stress many municipalities and taxpayers find themselves under because of influences such as inflation, tariffs and trade issues, the fact the treasury department could find a way to keep a tax increase so low was applauded.

“I think for us to even consider a one per cent increase given everything we are doing is absolutely amazing,” admitted Councillor Randy Carroll.

Hastie applauded Council for their support in asset management, as it is ultimately Council’s decision on what percentage increase is chosen or the needs of the community.

Previous councils had set a process in place to allow for savings through various reserve funds, and the current council continues to contribute to the future of the town.

Hastie explained that as a matter of process, other municipalities eliminate their prior year surplus by a regiment of different transfers, so they never carry anything forward and are always raising in the year what they need to fund all projects and services.

The Town of Goderich’s process has always followed the Municipal Act, where you cannot carry surplus forward forever, and the town needs to use it the following year.

“We’ve always carried it forward but the level of that carry forward can vary,” explained Hastie.

According to Mayor Trevor Bazinet, each year during budget reviews, during the process, the number starts high, and Council usually sends a request for staff to bring it down.

This year, the number needed to balance the budget was originally assessed at close to $900,000 and the treasury department was able to find ways to transfer funds from reserves to bring that number down to $102,000, in addition to a tax increase.

“One per cent is definitely a lot more comfortable than six per cent,” explained Bazinet.

“Times are tough for everyone, and we have to be cautious about that.”

According to Hastie, who looks at other municipalities that are increasing taxes by three to six per cent, this budget in Goderich is sitting in a good place with the proposed one per cent increase.

Despite economic stress and uncertainty, several council members suggested a two per cent increase in taxes in order to create a buffer for next year’s budget with so many major projects already approved.

“Any additional contributions that we could make certainly would benefit the future, if not the taxpayers of today, but the taxpayers of the future,” added Hastie.

At the April 28 Council meeting, the initial one per cent tax rate increase proposal was voted down by majority of Council members.

A new motion was proposed that a two per cent tax rate increase would be implemented, and the extra one per cent collected be directed to the road reconstruction reserve for future uses.

With this increase, that means an average residential property will pay $47.60 more for their 2025 property taxes.

For more information visit the Town of Goderich’s website where detailed charts and reports can be found in the April 28 Council meeting agenda package.