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Inflation taking a toll on municipal budgets

Inflation taking a toll on municipal budgets

Posted: 2022-06-23 07:50:17 By: thebay

“Drivers of inflation are having an impact on budgeting. Things like gas prices cause pressure, and looking at it, it’s hard to see six months from now,” reported the Director of Finance/Treasurer, Paul Judson, in the Bracebridge Council meeting on June 21, 2022.

Judson explained that the government is trying to tighten things to control inflation, however, at this point, it’s challenging to see what that will look like for fall.

Upon looking ahead for the upcoming year, Judson said, “When putting together cost assessments, using contractors, consultants…we will bring a budget forward that best reflects what inflation will look like in 2023.”

Deputy Mayor, Rick Maloney inquired, “Is inflation pressure something we will see in the budget, or will we be taking on each project as it stands and try and keep it in the budget?”

Judson advised, “The capital plan will include costs that best reflect moving forward. If a situation where capital projects create a problem bulge, we will look at things like inflation, assets, and retaining enough of a reserve to make sure we have enough for micro [budgets] such as was needed with COVID,” said Judson.

Reoccurring project funds will be considered as a framework for allocations, with next year being a different framework.