Centre Wellington staff grapple with rising inflation as budget process continues

·1 min read

Centre Wellington's treasurer has warned councillors rising inflation will make it difficult to deliver the draft 2022 budget they've asked for.

During a pre-budget meeting in June, council directed staff to build the draft budget around a tax increase of 2.4 per cent or less.

A 2.4 per cent tax increase represents an additional $27 per year in property taxation for the average household in the township.

At the time, Dan Wilson, managing director of corporate services and treasurer, told the township's politicians the blended inflation rate, which takes into account operating and capital inflation, was 3.2 per cent.

On Monday he delivered the news that number has now risen to five per cent.

"Which means things we were buying a year ago, now cost approximately five per cent more on average," he explained.

"It's going to put a lot of pressure on staff to come in at 2.4 per cent or less," Wilson said. "That is the direction that we have received from council and we're working on that but we just felt that this was important information for council to have at this point in time in the budget process."

Wilson's presentation was for information only, no action was required by council.

The draft 2022 budget is scheduled to be available in late November. Following deliberations, the final version of the township’s financial blueprint for the next year is expected to be approved by council on Dec. 20.

Alison Sandstrom, Local Journalism Initiative Reporter, GuelphToday.com

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