Amberley Village Council is working to address projected shortfalls in the Village budget. The following are answers to come commonly asked questions to help residents understand the current financial outlook and potential solutions. Residents are encouraged to review the information on our website, provide feedback at our upcoming meetings of council on November 9 and December 7, and to attend Finance Committee meetings as posted on the calendar.
- The Village studied its comprehensive long-term financial sustainability to determine what needs we could anticipate in the future.
- We know the cost of providing municipal services has increased over time due to inflation, personnel, technology and other operating expenses.
- At the same time, recurring Village revenues have not kept pace with those costs.
- The Finance Committee is examining ways to better align recurring revenue with the ongoing cost of providing Village services.
- Approximately $1 million in unexpected, one-time revenue helped the Village essentially balance its General Fund.
- About $500,000 came from the sale of Village property at the North Site.
- Approximately another $500,000 resulted from an unusually large individual income-tax payment associated with the exercise of stock options.
- These were unusual events that the Village cannot reasonably expect to occur every year.
- Long-term financial planning therefore needs to be based on reliable, recurring revenue rather than one-time windfalls.
- The Village has historically maintained a strong focus on controlling expenditures, and adheres to an overall cost-saving culture.
- The Committee characterized the current challenge primarily as a revenue issue that has developed gradually over time, as evidenced by the fact that this same measure was considered 15 years ago.
- Inflation and rising costs have increasingly continued to affect businesses, households and municipal government.
- The report noted that the Village's income tax rate has not been increased since 1989.
- Amberley Village residents who work in another municipality may pay municipal income tax where they work.
- Amberley Village currently allows residents a credit of up to 2% for qualifying municipal income taxes paid to another jurisdiction.
- Council is considering reducing that credit from 2% to 1%.
- The exact financial impact on an individual household would depend on factors including taxable income and the municipal tax rate paid to the community where the resident works.
- The rationale is that residents who work outside Amberley Village may pay some or all of their municipal income tax to another jurisdiction, while Amberley Village remains responsible for providing police protection and other municipal services where they live.
- Reducing the credit to 1% would allow the Village to retain additional income-tax revenue to support those services.
- The Committee estimated the change would generate approximately $1 million annually.
- Yes. Residents will have opportunities to provide testimony and express questions or concerns as the income tax credit proposal moves through the legislative process during the October, November and December meetings of council.
- Additional Finance Committee meetings are also expected as the Village continues discussing its finances and the proposed changes.
- To create a more sustainable balance between the Village's recurring revenues and recurring expenses.
- Rather than depending on unusual one-time revenues to close annual funding gaps, the proposal is intended to provide more predictable funding for police protection and other municipal services over the long term.
- Amberley Village has been deferring capital projects for the past fifteen years to maintain a balanced budget, including items like road repairs and Maintenance, Police and Fire vehicles.
- In addition, we have deferred major repairs and maintenance work to infrastructure, including the Municipal Building, tennis courts and other Village assets.
- As costs continue to rise, the deferred cost-savings becomes increased cost to the Village.
