NOTL council approves 2024 operating budget, refuses funding for festivals

The Niagara-on-the-Lake operating budget was approved Tuesday with a 6.75 increase during an afternoon special council meeting called for that purpose.

But first, Minerva Ward, president and CEO of the NOTL Chamber of Commerce and of Tourism NOTL, made a “revised” pitch to receive an increased share of the budget that was being discussed.

Appearing virtually at the meeting, she asked the town to cover the expenses of $10,000 for the Peach Festival, almost $13,000 for the Candlelight Stroll, $40,000 for the Icewine Festival and $5,000 for the Heritage Distract Christmas decorating, which chamber staff help organize, for a total of almost $68,000. The total she was requesting was an increase over last year’s $59,000 to cover the total cost of Candlelight Stroll, which she described as a community event that “represents the heart and soul of NOTL.”

“We don’t make any money from the event. We’re merely trying to break even,” she said, citing security, logistics and the cost of the candles driving the expense of the stroll, as well as overtime costs for staff. Revenue fell short last year due to a rainy evening and a decrease in candle sales, she explained.

The chamber has typically covered the cost of the event, she said, “but we know we can’t continue that way.”

However Coun. Sandra O’Connor made a motion asking that the town turn down the request, given the revenue Tourism NOTL receives from the municipal accommodation tax (MAT). Everything on the list Ward was asking taxpayers to fund should be paid for by the accommodation tax, O’Connor said, which is allowed under the terms of the MAT program.

The amount of tax given to the chamber to promote tourism is “hundreds of thousands of dollars,” O’Connor said, adding a document provided by Ward shows an amount of $1.2 million over two years, including what is projected for 2024.

“The reason I’m proposing not to fund them is because they have a new source of funding," she said. “Let them work within the MAT revenue they receive to fund these initiatives,  and not expect NOTL taxpayers to fund tourism promotion.”

She also put the Chamber on notice that she would be asking that Tourism NOTL fund those events in next year’s budget as well.

After voting against giving the chamber the money being requested, council approved the 2024 operating budget of $48.5 million, with an operating levy of $16,111,963, and a special area levy for storm water of $961,600, for an increase of 6.75 per cent after assessment growth.

The operating budget covers the costs of operating and delivering town services, including staffing costs, which were finalized recently after employee bargaining group negotiations. A new four-year agreement was approved at a 3.25 per cent for 2024, as laid out in a report to council. Six new positions were also approved, and five contract staff were converted to full-time employees.

In addition to increased staff costs, the report says major drivers of the increase include “insurance, debt from previously approved capital projects, enhancing capital investments, and additional legal costs.”

The six new positions include a fleet mechanic, climate change coordinator, senior planner, municipal bylaw policy coordinator, a bylaw officer and a recreation programmer.

Coun. Wendy Cheropita wanted to make a motion after the budget was approved, saying that she had tried earlier in the discussion but was not recognized to speak. She wanted to add an increase to councillors’ salaries, noting NOTL councillors are paid the least in the region, at $16,208 a year. The next lowest is Pelham, at about $18,000, with a similar population.

Cheropita was hoping to have salaries raised to $20,000, but was told she would have to make a motion that would bring the request back to council in the future, although she was reminded that the request was discussed earlier in budget deliberations and voted down.

The town’s 2024 capital budget of $10.2 million, which supports new and improved infrastructure, was approved in February.