Chatham-Kent council voted 18 to 0 in favour of an amended plan on where to allocate funds from the $2.1 million surplus that was a result of the 2023 operating budget (equal to 0.53% of the gross budget).
A recommendation from municipal staff had money going towards multiple endeavours including the Reserve for Police Services issues, Bloomfield Business Park Unfunded Capital Project, the Reserve for Tax Rate Stabilization, the Reserve for CK Affordable Housing, and the Reserve for Strategic Development.
Ward 2 councillor Anthony Ceccacci proposed more money be given to affordable housing solutions while avoiding the Reserve for Strategic Development.
"What I didn't want to see is the challenging year last year as well as the challenging year this year, 'us' funds sitting in a reserve for a lengthy time," said Ceccacci. "This is very diligent in addressing that it's going to be utilized in this term of council... I think it's a way to support our taxpayers, and it's a way to utilize that money in a timely manner."
In his new proposal, the Reserve for Police Services issues would receive the same amount of $94,610, the Bloomfield Business Park Unfunded Capital Project retaining the same amount of $500,000, but in this revised proposal the Reserve for CK Affordable Housing would be given just over $1.5 million.
"I know there are going to be a lot of financial challenges upcoming here when it comes to affordable housing," explained Ceccacci.
While it was determined the funds couldn't be used to reduce taxes, Chief Financial Officer Gord Quinton said the large amount being used towards affordable housing would help the taxpayer in the long run.
"It's being given back to the taxpayer, by us not having to raise future taxes to pay for those projects," said Quinton. He added, "When you talk about affordable housing, this is in council's strategic plan/priorities, to increase the level of service for affordable housing by a pretty drastic amount over the next five years. It is going to require more funding as we go, and this will lower that future impact to taxpayers."