The most challenging months on a municipal council’s calendar are those involving the setting of the next year’s operating and capital budgets.
Quinte West council will have a look at the looming financial challenges at a special meeting Wednesday.
High price inflation is a problem facing families and all organizations.
Quinte West staff say the city has lost 5% of its purchasing power in the past three years due to inflation.
Inflation has been running even higher for non-residential construction materials which the city has to buy a lot of.
Another challenge to keeping tax increases down will be that it’s expected external agencies such as conservation authorities and Hastings County are expected to bring in budgets with increases above the current inflation rate.
Also, staff say another $10 million a year needs to be put toward capital spending as a bare minimum or face a serious deterioration in the condition of roads and facilities in the city.
Council is expected to begin serious number crunching next month. Last year’s budget saw a 5.36% property tax increase.
