2025 BUDGET SUMMARY

Since forming municipal government in 2021, your council has worked diligently to Implement modern financial management practices, apply effective long-term asset management strategies & ensure effective spending practices. These efforts resulted in significant savings: Annual operational and debt costs are down. These successes, combined with 25% increases in property assessments & a concerted council effort to ensure any town money spent is supported by provincial & federal funding, enable councils’ ability to achieve their long-term goals.

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Council Long-term Goals: Ensure no reduction of services -- Incur no additional debt & focus town resources on:

 

1. Upgrading dilapidated major municipal infrastructure (Water -- Sewer -- Roads),

2. Capital purchases to support public works & fire department operations,

3. Investment in recreational equipment & facility upgrades and

4. Tax relief & incentives to encourage residential & affordable housing development

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Highlights: The following initiatives are implemented to continue work towards councils, long-term goals:

 

1. 1-point Residential Property Tax Reduction: Residential property tax mil rates reduced from 8.5 to 7.5. With increases in property assessments, increased available funding, inflationary increases, decreasing population, and the requirement to attract new residential & business development. ​​

 

2. Limited Income Tax Relief Option: To ensure residents with limited income can access tax relief in 2025, property owners (paying minimum property tax) will be eligible for a 10% reduction in their annual residential property taxes for their primary residence, provided that the total household income is less than $25,000.

 

3. Water & Sewer tax: Municipal Affairs informed the council that Trinity Bay North breached the Municipalities Act by not imposing a water and/or sewer tax on all properties accessible to water and/or sewer. Understanding councils’ legal obligations, the council had no choice but to impose the following:

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                        1. Water & Sewer Tax: Dwellings connected to the water and sewer system, occupied or not,                                                  must pay $420.00 per year and

                        1. Other Residential W&S Tax: Vacant land properties accessible to water and/or sewer must                                                  pay $50,00 annually.

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4. Tax incentive Affordable Housing developments: To ensure a competitive opportunity to provide this type of resource in our area, an annual tax relief option is available “on request” to achieve a competitive tax rate no greater than 6.5 mil.

 

5. Fire & Emergency Services: The following measures are adopted to maintain a high level of services:

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                      1. Fire Safety Inspection Program: Established to ensure that all business-public buildings and                                                rental accommodations with more than three units are inspected for fire & life safety and

 

                      1. $10,000 for Firefighting equipment: To purchase essential fire safety equipment.

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5. $90,500 Public Works initiatives:

 

                     1. $50,000 to repair roads/potholes,

                     1. $10,500 to maintain public buildings: 50% of the cost share to replace shingles on two public                                             buildings and

                     1. Pickup truck $30,000: To replace a 2009 pickup used for recreational & public works                                                             operations

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6. $27,500 invested in recreational equipment & facility upgrades, invested as part of a 50% cost share with the Recreation Committee & used to support upgrades to the Arch Rock Trail, Port Union ballfield, Ricky Mackey family park, Little Catalina playground, Catalina multipurpose court & Tidy Town facilities/activities.

 

7. $5,105,363 invested in Municipal Capital Works Projects: Thanks to a concentrated funding application effort, approximately 98% of this amount comes from supporting federal and provincial funding, while the town's cost is only approximately 2%, or $92,502.

 

8. $55,000 invested in Reserve funding: Reserve funding accounts are to be used to accumulate annual savings for Municipal Capital Works & capital purchases necessary to support councils’ long-term goals without burdening the town with unnecessary borrowing costs:

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                      1. New Fire Truck: $10,000 invested as part of a 50% cost share with the Fire Department to                                                    save toward replacing a 1991 pumper truck. $50,612 is already accumulated in this account,

                      1. Wastewater Treatment Plant: $25,000 invested as savings toward the installation of a                                                            federally mandated water treatment facility designed to treat wastewater before it is flushed                                              into our harbour and

                      1. Vehicle Life Cycle Management: $20,000 was invested in saving for purchasing major                                                            equipment, such as loaders, trucks, etc., at the end of their life cycle without needing the                                                    town to borrow money.

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Mayor’s Summary: Thanks to the collective efforts of your town council and staff, this budget meets Municipal Affairs mandates and achieves a zero balance for 2025. Over 5 million dollars in Capital Works projects & purchases are fully funded for 2025 at only a 2% cost to the town. On top of these successes, there is a financial plan with available funding to ensure that the town can fund its share of up to 1.5 million dollars in new provincial or federal government-supported infrastructure projects for the next 3 years, provided the current financial plan is maintained.

 

Prepared by TBN Mayor & Deputy Mayor

Approved by TBN Council