HomeMy WebLinkAboutFebruary 27, 2025 - Special CouncilTHE CORPORATION OF THE MUNICIPALITY OF BAYHAM
SPECIAL COUNCIL MEETING AGENDA
MUNICIPAL OFFICE
56169 Heritage Line, Straffordville, ON
Council Chambers – HYBRID
Thursday, February 27, 2025
6:00 p.m.
The February 27, 2025 Special Council Meeting will allow for a hybrid meeting function.
You may attend in person or virtually through the live-stream
on the Municipality of Bayham’s YouTube Channel
1. CALL TO ORDER
2. DISCLOSURES OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF
3. REPORTS TO COUNCIL
A. Report TR-06/25 by Lorne James, Treasurer re 2024 Q4 Variance Report
B. Report TR-07/25 by Lorne James, Treasurer re 2024 Surplus Allocation
C. Report TR-08/25 by Lorne James, Treasurer re 2025 Fiscal Outlook Report
4. OTHER BUSINESS
A. Procedural Motion to Amend Start Time of March 6, 2025 Regular Meeting of Council
5. BY-LAW TO CONFIRM THE PROCEEDINGS OF COUNCIL
A. By-law No. 2025-016 Being a by-law to confirm all actions of Council
6. ADJOURNMENT
REPORT
TREASURY DEPARTMENT
TO: Mayor & Members of Council
FROM: Lorne James, Treasurer
DATE: February 27, 2025
REPORT: TR-06/25
SUBJECT: 2024 Q4 VARIANCE REPORT
BACKGROUND
The Q4 (fourth quarter) financial reports are provided for Council’s fiduciary review. This Report
provides a summary of year-end revenue and expenditure to December 31, 2024, and
variances to the Operating Budget and Capital Budget.
DISCUSSION
Operating Budget
The Operating Budget is line with expected levels, given the cyclical nature of operations and
slower inflationary period. The Municipality experienced higher operational revenues in
investment income and new taxation growth.
Capital Budget
The Capital Budget is generally consistent with expected levels with some capital savings in
General Government and Public Works. A few projects were paused or deferred to 2025 capital
budget, with recommended reserve transfers for those respective projects.
Financial Impacts
The 2024 Q4 Operating Revenue & Expense Variance Report is attached to this Report and
provides an overview of the 2024 Budgeted versus Actual Revenues and Expenditures as of
December 31, 2024, including a column identifying the Percentage Consumed.
STRATEGIC PLAN
3.2: Quality of Governance > To continually demonstrate financial responsibility to the
community.
Initiative(s): Not Applicable.
TR-06/25 2
ATTACHMENTS
1. Appendix A: 2024 Q4 Operating Revenue & Expense Variance Report
2. Appendix B: 2024 Q4 Capital Expense Variance Report
RECOMMENDATION
1. THAT Report TR-06/25 re 2024 Q4 Variance Report be received for information.
Respectfully submitted: Reviewed by:
Lorne James, CPA, CA Thomas Thayer, CMO, AOMC
Treasurer Chief Administrative Officer
Revenues
05.10 General Taxation $6,492,694 $6,336,355 102% $156,339 New Tax growth
05.20 Other Revenues $1,369,424 $950,402 144% $419,022 Higher investment yields
10.10 General Government $94,819 $82,047 116% $12,772
10.20 Council $0 $0 $0
20.10 Fire Services $35,212 $22,000 160% $13,212 Donations
20.20 Police Services $0 $5,000 0% -$5,000 no POA revenues
20.30 Conservation Authority $0
20.40 Building Services $276,699 $122,000 227% $154,699 Strong building growth
20.50 Bylaw Enforcement Services $45,579 $46,000 99% -$421
25.10 Roads $639,183 $590,196 108% $48,987
25.20 Winter Control $4,834 $3,000 161% $1,834
25.40 Street Lights $0 $0
30.10 Water $799,185 $765,081 104% $34,104
30.15 Richmond Water $177,895 $101,767 175% $76,128 Source Water Grants
30.30 Waste Disposal $38,227 $35,000 109% $3,227
30.20 Waste Water $973,522 $982,500 99% -$8,978
35.20 Cemeteries $5,314 $2,000 266% $3,314
40.10 General Assistance $0 $0
45.10 Parks & Recreation $3,380 $2,600 130% $780
45.20 Straffordville Community Centre $28,749 $10,000 287% $18,749 Additional Rentals
45.40 Libraries $86,627 $77,357 112% $9,270
45.50 Museums $12,146 $19,200 63% -$7,054 Lower student grants
50.10 Planning, Development & Tourism $138,871 $101,500 137% $37,371 Offset in expense
50.15 Tourism & Marketing $15,000 $15,000 100% $0
50.20 Environmental Services $13,250 $3,500 379% $9,750 More drainage time for Super Grant
Capital $1,973,698 $4,433,653 45% -$2,459,955 SCC on hold
Expenditures
05.10 General Taxation $0 $0 $0
05.20 Other Revenues $0 $0 $0
10.10 General Government $1,481,766 $1,416,988 105% $64,778
10.20 Council $103,415 $101,626 102% $1,789
20.10 Fire Services $683,721 $631,710 108% $52,011 Fire Suppresion materials
20.20 Police Services $957,235 $958,949 100% -$1,714
20.30 Conservation Authority $105,747 $105,747 100% $0
20.40 Building Services $110,208 $104,848 105% $5,360
20.50 Bylaw Enforcement Services $145,792 $115,258 126% $30,534 Staff turnover
25.10 Roads $2,049,956 $1,953,466 105% $96,490
25.20 Winter Control $88,374 $118,805 74% -$30,431
25.40 Street Lights $44,801 $44,000 102% $801
30.10 Water $799,185 $765,081 104% $34,104
30.15 Richmond Water $177,895 $101,767 175% $76,128 Source Water expenses
30.20 Waste Water $973,522 $982,500 99% -$8,978
30.30 Waste Disposal $477,737 $390,000 122% $87,737 Higher waste tonnage
35.20 Cemeteries $10,123 $22,500 45% -$12,377
40.10 General Assistance $6,999 $7,000 100% -$1
45.10 Parks & Recreation $95,745 $116,382 82% -$20,637
45.20 Straffordville Community Centre $70,570 $69,168 102% $1,402
45.40 Libraries $86,627 $77,357 112% $9,270
45.50 Museums $56,802 $60,695 94% -$3,893
50.10 Planning, Development & Tourism $246,999 $207,015 119% $39,984 Offset in revenue
50.15 Tourism & Marketing $61,040 $74,984 81% -$13,944
50.20 Environmental Services $5,475 $8,300 66% -$2,825
Capital $3,367,766 $6,272,000 54% -$2,904,234 SCC on hold
Net Position Net Postive( Negative)
05.10 General Taxation $6,492,694 $6,336,355 $156,339
05.20 Other Revenues $1,369,424 $950,402 $419,022
10.10 General Government -$1,386,946 -$1,334,941 -$52,005
10.20 Council -$103,415 -$101,626 -$1,789
20.10 Fire Services -$648,509 -$609,710 -$38,799
20.20 Police Services -$957,235 -$953,949 -$3,286
20.30 Conservation Authority -$105,747 -$105,747 $0
20.40 Building Services $166,491 $17,152 $149,339
20.50 Bylaw Enforcement Services -$100,213 -$69,258 -$30,955
25.10 Roads -$1,410,773 -$1,363,270 -$47,503
25.20 Winter Control -$83,540 -$115,805 $32,265
25.40 Street Lights -$44,801 -$44,000 -$801
30.10 Water $0 $0 $0
30.15 Richmond Water $0 $0 $0
30.30 Waste Disposal -$439,510 -$355,000 -$84,510
30.20 Waste Water $0 $0 $0
35.20 Cemeteries -$4,808 -$20,500 $15,692
Over (Under)
Budget
Municipality of Bayham
Appendix A: 2024 Q4 Operating Revenue and Expense Variance Report
2024 Actuals 2024 Budget % Consumed
40.10 General Assistance -$6,999 -$7,000 $1
45.10 Parks & Recreation -$92,364 -$113,782 $21,418
45.20 Straffordville Community Centre -$41,821 -$59,168 $17,347
45.40 Libraries $0 $0 $0
45.50 Museums -$44,657 -$41,495 -$3,162
50.10 Planning, Development & Tourism -$108,128 -$105,515 -$2,613
50.15 Tourism & Marketing -$46,040 -$59,984 $13,944
50.20 Environmental Services $7,776 -$4,800 $12,576
Capital -$1,394,068 -$1,838,347 $444,279
2024 2024 % Over (Under)
Actuals Budget Consumed Budget Funded Via:Status To Be Reserved:
General Government
Development Charges Study 17,002$ 35,000$ 49% (17,998)$ Working Capital
Reserve Ongoing
$18k to Working
Capital
Liability Reserve Transfer 15,000$ 15,000$ 100%-$ Tax Levy Done
Working Capital Transfer 10,000$ 10,000$ 100%-$ Tax Levy Done
Election Reserve Transfer 15,000$ 15,000$ 100%-$ Tax Levy Done
Guarantorship Loan Reserve Transfer 1,000,000$ 1,000,000$ 100%-$ Tax Levy Done
Fire
Technical Rescue 5,992.01$ 7,500$ 80%(1,508)$ Tax Levy Complete
Cistern - SCC 129,000$ 0%(129,000)$ Tax Levy On Hold $129k to Fire Reserve
Radio System Reseve 30,000$ 0%
(30,000)$
Tax Levy Done
$60k to Radio Reserve
for 2023 and 2024
Pumper 1 588,282$ 550,000$ 107%38,282$ Tax Levy and Fire
Reserve Complete
Portable Radios 8,268$ 6,000$ 138%2,268$ Tax Levy Complete
Bunker Gear 15,474$ 14,000$ 111%1,474$ Tax Levy Complete
Fire Equipment Reserve Transfer 100,000$ 100,000$ 100%-$ Tax Levy Complete
ATV Trailer
Roads
Stewart Bridge 88,848$ 75,000$ 118%13,848$ OCIF Complete
Tunnel Line Culvert removal 38,373$ 200,000$ 19%(161,627)$ OCIF and Gas Tax On Hold
future funding via Gas
Tax and OCIF
Pickup 57,742$ 60,000$ 96%(2,258)$ Tax Levy Complete
GPS Survey Equipment 25,440$ 25,000$ 102%440$ Tax Levy Complete
Tollgate Rd. 413,356$ 400,000$ 103%13,356$ Road Constuction and
OCIF Complete
Vienna Line 200,679$ 230,000$ 87%(29,321)$ Gas Tax Complete
Works 41,252$ 65,000$ 63%(23,748)$ Tax levy Complete
Gravel Program 218,215$ 215,000$ 101%3,215$ OCIF Complete
Road Signs 1,412$ 7,500$ 19%(6,088)$ Tax Levy Complete
Guardrails 10,000$ 0%
(10,000)$ Complete in
operating expenses
B & C Inspection 6,091$ 10,000$ 61%(3,909)$ Tax Levy Complete
Road Side Brushing 28,976$ 30,000$ 97%(1,024)$ Tax Levy Complete
Road Needs Study / AMP Update 42,075$ 55,000$ 77%
(12,925)$
Tax Levy
Roads Need
Complete, AMP to
2025
$13k to Road
Construction for AMP
Hill Management 30,159$ 30,000$ 101%159$ Tax Levy Complete
Water
Equipment - Richmond 13,738$ 15,000$ 92%(1,262)$ Water Reserve Complete
Water Financial Plan 12,433$ 17,500$ 71%(5,067)$ Water Reserve Complete
Richmond Well Review -$ 20,000$ 0%(20,000)$ Water Reserve Complete
Water Lines 25,055$ 25,055$ Water Reserve Complete
Waste Water
System Equipment 43,006$ 45,000$ 96%(1,994)$ Sewer Reserve Complete
Forcemain -$ 10,000$ 0%(10,000)$ Sewer Reserve Deferred to 2025
Water Financial Plan 12,433$ 17,500$ 71%(5,067)$ Sewer Reserve Complete
Manhole rehab -$ 25,000$ 0%(25,000)$ Sewer Reserve Deferred to 2025
Switch Upgrades 45,588$ 32,000$ 142%13,588$ Sewer Reserve Complete
Eden PS Up 35,620$ 250,000$ 14%(214,380)$ Sewer Reserve/ DC
Sewer Ongoing in 2025
Lot Servicing 49,128$ 49,128$ Sewer Reserve Complete
Parks
Canoe Launch 15,356$ 60,000$ 26%(44,644)$ VCIF Reserve canoe launch in 2025
Rail Train Works 1,890$ 70,000$ 3%(68,110)$ Trail Reserve
Just maintenance,
capital paused
Vienna Park -$
Facilities
PW HVAC/Heat Tubes 66,100$ 100,000$ 66%(33,900)$ Tax Levy Complete
PB Library Washroom 4,970$ 20,000$ 25%(15,030)$ Facility Reserve
Changed out, not
required
PB Beach Washroom Expansion 75,000$ 0%(75,000)$ Tax Levy On Hold
$75k to Facility
Reserve
Facility Audits 35,000$ 0%(35,000)$ Tax Levy Deferred to 2025
$35k to Facility
Reserve
SCC Expansion 2,171,000$ 0%(2,171,000)$ Facility Reserve On Hold
MM Accessible Washrooms 8,415$ 60,000$ 14%(51,585)$ Marine Reserve and Tax
Levy Ongoing to 2025
$50k to Facility
Reserve
Lighthouse 1,795$ -$ 1,795$ Lighthouse Reserve
Stabilizing
Maintenance
Municipality of Bayham
Appendix B: 2024 Q4 Capital Expense Variance Report
Planning and Development
Official Plan Review 48,936$ 65,000$ 75%(16,064)$ Planning Reserve and
Tax Levy Complete
REPORT
TREASURY DEPARTMENT
TO: Mayor & Members of Council
FROM: Lorne James, Treasurer
DATE: February 27, 2025
REPORT: TR-07/25 FILE NO. SUBJECT: 2024 SURPLUS ALLOCATION
BACKGROUND
The purpose of this Report is to advise Council of the 2024 Surplus, and recommend that
Council approve allocation of the 2024 total surplus of $1,016,811.48.
DISCUSSION
The 2024 financial statements have been drafted by the Treasurer.
The 2024 capital surplus is $444,279.29. The 2024 operating surplus is $572,532.19.
Section 290(4)(b) of the Municipal Act, SO 2001, as amended, requires that any surplus from a
previous year be included as an estimated revenue within the current budget. If this process is
followed each year, during years where large fluctuations in surpluses occur, large tax rate
fluctuations may also occur. Therefore, it is common practice for municipalities to allocate their
annual surplus to reserves.
The recommended allocation of the 2024 surplus to identified reserves is attached hereto as
Appendix ‘A’ and focuses on short-term capital needs. A number of the transfers deal with
projects that were not completed in 2024 as noted in Report TR-06/2025 re 2024 Q4 Variance
Report. The remaining budget allocations are recommended for reserve transfer to fund
completion of applicable projects. Staff also recommend allocations to the Guarantorship Loan
Transfer Reserve and the Contingency Reserve.
Appendix ‘B’ is specific to unaudited year-end Reserve and Reserve Fund balance. Council will
see a new reserve account established called Fire Radio Reserve. Appendix ‘C’ is specific to
sales of assets in 2024 with one transaction noted for a part of Faye Street, Port Burwell, and
the applicable recommended reserve for same.
TR-07/25 2
In accordance with Bayham’s 2023-2026 Community Strategic Plan and ongoing capital
infrastructure needs, it is recommended that Council continue to consider surplus lands or
assets to refund reserve accounts for future capital needs.
Finally, based on the Appendices to this Report, Council has more than doubled its
Guarantorship Loan Transfer Reserve balance over the 2024 fiscal year, to a total of
$2,976,532.19. This does not include the additional $1.1 million pledged via the 2025-2034
Capital Budget as a 2025 transfer item.
Should Council direct confirmation of the reserve transfers as attached to this Report, Bayham’s
effective Guarantorship Loan Transfer Reserve position will be $4,076,531.19.
The remaining principal on the HMCS Ojibwa debt as of March 20, 2025 when the current 10-
year term expires will be $4,073,431.49.
Upon confirmation, Bayham will formally be in a position to retire the remaining debt principal
associated with the HMCS Ojibwa. Council will receive a Report at the March 6, 2025 meeting
to formally consider the matter.
STRATEGIC PLAN
3.2: Quality of Governance > To continually demonstrate financial responsibility to the
community.
Initiative(s): Not Applicable.
ATTACHMENTS:
1. Appendix A: 2024 Surplus Transfer Report
2. Appendix B: 2024 Revised Reserves and Reserve Funds incorporating recommended
Surplus Transfers.
3. Appendix C: 2024 Sale of Assets Report
RECOMMENDATION
1. THAT Report TR-07/25 re 2024 Surplus Allocation be received for information;
2. AND THAT Council confirm the 2024 Surplus Transfer Report attached hereto as
Appendix ‘A’;
3. AND THAT Council confirm the 2024 Revised Reserves, Reverse Funds, and
Deferred Revenue Report attached hereto as Appendix ‘B’;
4. AND THAT Council confirm the 2024 Sale of Assets Report attached hereto as
Appendix ‘C’;
5. AND THAT Council direct staff to bring forward an updated Surplus of Assets report
for all departments of the Municipality.
TR-07/25 2
Respectfully submitted: Reviewed by:
Lorne James, CPA, CA Thomas Thayer, CMO, AOMC
Treasurer Chief Administrative Officer
Transfer Account No. Reserve
$18,000.00 2301 Working Capital Reserve
Purpose:
To fund remaining Development Charges study.
Transfer Account No. Reserve
$129,000.00 2336 Facilities Reserve
Purpose:
To fund Cistern for fire suppression at SCC.
Transfer Account No. Reserve
$60,000.00 2374 Fire Radio Reserve
Purpose:
To fund future replacement of the Fire communications towers in 2028.
Transfer Account No. Reserve
$13,000.00 2305 Road Construction Reserve
Purpose:
To fund Asset Management Plan updates required for July 1, 2025 compliance.
Transfer Account No. Reserve
$35,000.00 2336 Facilities Reserve
Purpose:
To fund a portion of facility audit for 2025, for all Bayham buildings.
Transfer Account No. Reserve
$75,000.00 2336 Facilities Reserve
Purpose:
To fund Port Burwell East Beach bathroom engineering works.
Transfer Account No. Reserve
$50,000.00 2336 Facilities Reserve
Purpose:
To fund remaining works on the Marine Museum along with EAF grant.
Transfer Account No. Reserve
$64,279.29 2331 Rate Stabilization Reserve
Municipality of Bayham
Appendix A: 2024 Surplus Transfer Report
Purpose:
To replenish the Rate Stablization reserve
Transfer Account No. Reserve
$572,532.19 2367 Guarantorship Reserve
Purpose:
To fund the elimination of Project Ojibwa debt in March 2025.
Account Balance Transfer Interest Transfer Balance
No.1-Jan-24 To Income From 31-Dec-24
RESERVES
2301 Working Capital 59,096.33 28,000.00 87,096.33
2302 Equipment 40,000.00 40,000.00
2303 Fire Department Apparatus 5,000.00 5,000.00
2304 Electronic Equipment -
2305 Road Construction 543,012.02 13,000.00 82,280.00 473,732.02
2306 Otter Valley Chamber 1,414.92 1,414.92
2307 Trail Improvements 151,035.80 11,665.29 1,889.95 160,811.14
2308 Fire Equipment 572,399.12 100,000.00 550,000.00 122,399.12
2310 Water Works 733,096.47 159,126.16 51,226.29 840,996.34
2311 Richmond Water -
2313 County Road Maintenance -
2314 Building Vehicle 33,698.03 33,698.03
2315 Fire Renumeration -
2318 Parks & Playgrounds 135,000.00 135,000.00
2319 By-law Vehicle -
2320 Records Management -
2322 Lighthouse (ex Dredging)54,424.26 850.00 1,795.10 53,479.16
2323 Library Buildings -
2324 Musuem Artifacts 1,315.85 1,315.85
2326 Museums General 10,653.34 8,415.14 2,238.20
2327 Election 15,000.00 15,000.00 30,000.00
2328 Waste Management -
2330 Police Services -
2331 Rate Stabilization 52,801.32 79,279.29 132,080.61
2332 Capital Rate Stabilization -
2333 Operating Rate Stabilization -
2334 Straffordville Skate Park 1,731.70 1,731.70
2335 OMPF -
2336 Municipal Facilities 481,232.53 328,799.12 4,969.85 805,061.80
2363 Reserve - Planning 40,000.00 23,935.90 16,064.10
2364 SCC Capital Donations 48,129.42 48,129.42
2365 Winter 50,000.00 50,000.00
2367 Guarantorship Reserve 1,400,000.00 1,576,532.19 2,976,532.19
2375 Fire Radio Reserve 60,000.00 60,000.00
Consolidated Entities 1,746,034.00 1,746,034.00
6,175,075.11 2,372,252.05 - 724,512.23 7,822,814.93
Balance Transfer Interest Transfer Balance
1-Jan-24 To Income From 31-Dec-24
RESERVE FUNDS
2312 Sewage Works 3,230,989.92 258,571.53 107,430.41 185,775.12 3,411,216.74
2352 Environmental 69,643.29 2,315.64 71,958.93
2360 Straffordville Community Ctr 2,207.87 73.41 2,281.28
2366 Reserve - Storm Sewer 5,250.00 5,250.00
2369 Vienna Community Improvement Reserve Fund 300,801.99 16,161.75 15,356.02 301,607.72
Consolidated Entities 192,095.00 - 192,095.00
3,800,988.07 258,571.53 125,981.21 201,131.14 3,984,409.67
DEFERRED REVENUE
2350 Parkland 94,307.02 76,250.00 3,135.71 173,692.73
2357 Developer Deposits 28,578.10 950.22 29,528.32
2362 Federal Gas Tax 252,406.47 226,753.33 8,392.52 206,048.90 281,503.42
2368 OCIF 135,456.03 533,544.00 2,141.98 671,142.01 (0.00)
510,747.62 - 836,547.33 - 14,620.43 - 877,190.91 - 484,724.47
Development Charges
2400 DC - Water - Bayham 19,267.88 77,300.70 3,301.34 99,869.92
2401 DC- Water - Richmond 26,679.76 760.37 27,440.13
2402 DC - Waste Water 59,342.65 322,813.16 12,582.71 394,738.52
78,610.53 - 426,793.62 - 16,644.42 - - - 522,048.57
For The Year Ended December 31, 2024 (unaudited)
Municipality of Bayham
Appendix B: Reserves, Reserve Funds & Deferred Revenue
For The Year Ended December 31, 2024 (unaudited)
Municipality of Bayham
Reserves, Reserve Funds & Deferred Revenue
Asset Transfer Account No. Reserve
Portion of Faye Street $4,000.00 2367 Guarantorship Reserve
$4,000.00
Municipality of Bayham
Appendix C: 2024 Sale of Assets
REPORT
TREASURY DEPARTMENT
TO: Mayor & Members of Council
FROM: Lorne James, Treasurer
DATE: February 27, 2025
REPORT: TR-08/25 FILE NO.
SUBJECT: 2025 FISCAL OUTLOOK REPORT
BACKGROUND:
This Report is designed to provide Council a forward-looking fiscal outlook of 2025.
This Report is to supplement both Operating and Capital budgets and the year-end summary
Reports that Council has received to-date.
DISCUSSION:
Revenues
Elgin County experienced increased growth in 2024.The Municipality of Bayham experienced
growth of new taxation above 2.5 percent, however, this trailed some of the other Elgin County
lower-tier municipalities. Growth will likely continue into 2025 as the Bank of Canada continues
its slow interest rate cuts. The continued growth will also impact Water and Wastewater
departments with higher Development Charge collections and operational revenues.
Municipal staff are closely monitoring the MPAC Phase-In status and its impact on 2026 and
2027 tax assessment and budgets. Staff expect phase-in will not return until 2026 at the
earliest.
Expenses
The Municipality, like every other business, will continue to see rising costs of materials for both
Operating and Capital projects. It is forecast that inflation is cooling, however procurement
pressures in capital items such as Fire and Public Works rolling stock will continue to outpace
Consumer Price Index. This is likely to be compounded with the impending threat of broad-
market tariffs and declining dollar relative to the United States Dollar.
The Municipality may have several positions to recruit for in 2025 and into 2026, both for full-
time permanent, part-time, and casual positions. As the current labour market is considered
TR-08/25 2
tight in specialized roles, the Municipality will need to be resourceful in both recruitment and
retention of these positions to market trends.
A new variable for Bayham’s finances is the shared servicing arrangement with the Township of
Malahide for Building and By-law Services. This program rolled out in the back half of 2023 and
was a net benefit compared to outside contractor services. Varying levels of service and
requests will impact this cost centre’s performance throughout the year, including staff attrition.
Operating budget figures are based on projections, based on current service levels. This shared
service model has been a net positive in building revenues and by-law operational services in
2024, and this is expected to continue into 2025 as by-law services looks to pilot paid parking at
the Port Burwell East Beach to offset operational, contract, and capital costs associated with
beach maintenance and projects.
Debt Risk
The Municipality will also be experiencing a tremendous interest rate and financial risk in March
2025 when the 10-year debt term of Project Ojibwa is up for renewal. Presently, the interest rate
on the loan is at 2.71 percent. When the term debt is up for renewal, the Municipality could be
looking at a term interest rate between 5.1 to 6.2 percent, and either have to extend the term of
the amortization period of the debt or substantially increasing the annual payments to maintain
the 25-year term. Council, in the 2024 Capital budget, allocated $1m into the Guarantorship
Loan Transfer Reserve for principle debt payments in 2025. A $1.1m allocation in the 2025
Capital Budget has already been addressed and approved in-principle by Council. A further
transfer of $572,532.19 has been included in Report TR-07/24 re 2024 Surplus Allocation. The
Municipality is now is a position to eliminate the remaining debt associated with this project,
opening up capital borrowing limits and utilizing lower interest rates with Infrastructure Ontario
and expanding our Annual Repayment Limit for upcoming water, wastewater, and stormwater
capital program needs.
Unforeseen Capital Expenses
To commence 2025, Council is waiting on construction costs estimates for the Straffordville
Community Centre. Once costs are established, Council will need to determine next steps on
project and any funding short falls of initial budgeted funds.
The Lighthouse rehabilitation is still pending at this time, and is on hold until after March 2025
for Project Ojibwa Debt maturity date. Council will still need to consider funding strategies for
the project where grants, donations, or a community partnership are options.
Investments
The Municipality needs to continue rolling over investments after March 2025, to maximize all
investment gains as possible to fund future needs. Each quarterly meeting will have re-investing
GICs with maturities coming up, as well as additional short-term investing of surplus cash-on-
hand. With interest rates expected to remain at this level or lower for the majority if not all of
2025, the Municipality will be in a position to take advantage of surplus cash on hand over the
balance of the fiscal year.
Tariffs
The Municipality is not immune to the current tariffs dispute between Canada and United States.
Bayham is an agriculture and automotive-based local economy, and our area businesses and
TR-08/25 2
resident’s employment may be greatly impacted by these disputes. In addition, affordability of our
seniors to afford basic food, supplies is greatly increased when prices increase via tariff flow-
through taxes. Affordability has long been an issue within Bayham with years of rising property
taxes and user rate fees (water and wastewater) increases. Council will need to be aware at
2025 operating budget time if new information on tariff implications are impacting our local
residents and businesses.
STRATEGIC PLAN
3.2: Quality of Governance > To continually demonstrate financial responsibility to the
community.
Initiative(s): Not Applicable.
RECOMMENDATION
1. THAT Report TR-08/25 re 2025 Fiscal Outlook Report be received for information.
Respectfully submitted: Reviewed by:
Lorne James, CPA, CA Thomas Thayer, CMO, AOMC
Treasurer Chief Administrative Officer
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
BY-LAW NO. 2025-016
A BY-LAW TO CONFIRM ALL ACTIONS OF
THE COUNCIL OF THE CORPORATION OF
THE MUNICIPALITY OF BAYHAM FOR THE
COUNCIL MEETING HELD FEBRUARY 27, 2025
WHEREAS under Section 5 (1) of the Municipal Act, 2001 S.O. 2001, Chapter 25, the powers of
a municipal corporation are to be exercised by the Council of the municipality;
AND WHEREAS under Section 5 (3) of the Municipal Act, 2001, the powers of Council are to be
exercised by by-law;
AND WHEREAS the Council of The Corporation of the Municipality of Bayham deems it
advisable that the proceedings of the meeting be confirmed and adopted by by-law.
THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF
BAYHAM ENACTS AS FOLLOWS:
1. THAT the actions of the Council of The Corporation of the Municipality of Bayham in
respect of each recommendation and each motion and resolution passed and other
action by the Council at the Council meeting held February 27, 2025 is hereby adopted
and confirmed as if all proceedings were expressly embodied in this by-law.
2. THAT the Mayor and Clerk of The Corporation of the Municipality of Bayham are hereby
authorized and directed to do all things necessary to give effect to the action of the
Council including executing all documents and affixing the Corporate Seal.
READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 27th
DAY OF FEBRUARY, 2025.
____________________________ _____________________________
MAYOR CLERK