Challinor Idea To Establish Reserve Fund To Offset Annual Operating Budget Tax Increases Supported
If the Town of Milton is able to identify a one-time funding source, it will establish an operating budget reserve fund that would generate income to help offset the impact on local property taxpayers brought about by annual operating budget tax increases.
Town of Milton Ward 2 Councillor John Challinor II suggested the idea that such a reserve fund be investigated during 2024 operating and capital budget deliberations in December 2023 because of the negative impact of steadily increasing property taxes on local residential and commercial/industrial/retail property taxpayers.
Mr. Challinor estimates that $10 to $15 million would be required to create the operating budget reserve fund so that it could generate income annually that would help to provide a meaningful reduction in taxes for local property owners.
He had also recommended that a capital budget reserve fund be established to replace the process of taking monies out of the annual operating budget to build the municipality’s capital reserves. While Town staff weren’t supportive of the establishment of that reserve, they acknowledged that more clarity is required around the municipality’s current capital reserve policy and its related funding mechanisms.
Mr. Challinor will continue to work with Town staff to identify and secure funding that would create the operating budget reserve fund. He will also continue to work with staff to reduce the pressure on the operating budget brought about by using it to fund the municipality’s capital reserves.