The City of Sarnia's 2019 draft budget amounts to $145.2 million and calls for a property tax increase of almost 4 per cent.
The draft, unveiled at city hall Friday morning, calls for $78.1 million to be raised through taxation -- an increase of $2.8 million or 3.72 per cent.
General operating expenditures amount to just over $77 million while police costs are just over $26 million.
Finance Director Lisa Armstrong said key drivers include a 1 per cent increase in staffing costs, a 1 per cent hike in the police budget, and changes to recycling, compost and garbage contracts.
"Recycling and compost is a very large portion of the increase, at $985,000, and that has to do with the new contract that has been approved by council," said Armstrong. "It will start in July of 2019. As well, there's a revenue reduction due to the revenue received from recyclables, such as aluminum, so when the pricing changes we receive less revenue."
Armstrong said the 2019 draft capital budget, which doesn't address the city's $388 million infrastructure backlog, totals $29.7 million.
"That is based on the "pay-as-you-go" model. So what we are collecting, we are spending on capital projects," said Armstrong.
She said a number of projects are planned, including road resurfacing, shoreline protection, finishing the Donohue Bridge and $1.9 million to replace one of Sarnia Fire's aerial trucks.
No funds have been included to progress the Colborne Road Fire Station building project.
"We have not included any funding in the 2019 staff recommended budget for that -- given other priorities," said Armstrong. "Of course it's up to council on budget day to identify whether they'd like to reallocate any of that."
Excluding county and education levies, Armstrong said the draft budget represents an increase of $32 per $100,000 of residential assessment on the municipal portion of the property tax bill.
An additional $2 increase is proposed for every $100,000 of residential assessment for residents who pay the transit levy.
City council's budget deliberations are set for December 11.
