Centre Wellington council is getting a jump start on its 2014 budget process.
On Nov. 18, Mayor Joanne Ross-Zuj thanked council and staff for the work on the pre-budget discussions.
“We’re on our way to get our capital budget to go out the door, and I appreciate the time taken to come with your comments and concerns in reviewing the information,” she said.
Later in the meeting, a presentation was delivered by managing director of corporate services Wes Snarr, who said the municipal level of government is the closest and most accessible to taxpayers.
“Compared to the federal and provincial levels of government, the services provided by municipalities tend to be the hard services that have a more direct and daily impact on their citizens,” said Snarr.
He used the examples of recreation programs or facilities that a child, teen or adult attends; the water used to brush one’s teeth or have a shower; being able to drive down a clear road in snowy conditions or walk along a sidewalk; ensuring that new development and construction meets requisite planning and building standards; and attracting visitors and new business.
Snarr stated the approved budget document is a key policy and planning tool that determines the funding for services provided by a municipality, and the level of services provided.
The annual process of preparing a municipality’s capital and operating budgets should engage its citizens, Snarr said, noting discussions with senior management about the capital budget have been ongoing since late July.
Capital budget committee meetings are set for Dec. 3 and Dec. 6. A report recommending council’s approval of the 2014 capital budget would come forward on Dec. 16. Council has also set operation budget committee meetings for late January and early February (if required).
A report recommending council’s approval of the 2014 budget is anticipated to be on the Feb. 18 council agenda.
Ross-Zuj said it is important to get the budget out the door in February.
Snarr noted that historically, the township’s annual level of assessment growth has ranged from a 0.5 to 3.5 per cent. Given existing development that is being built out, and new development that is coming on stream, a positive amount of growth can be expected to continue, he said.
New assessment this year includes the Walmart store, with the township portion of tax revenue being approximately $55,000 annually.
Snarr said the total amount of assessment growth for the 2014 budget will be known after the Municipal Property Assessment Corporation returns the 2013 assessment roll for 2014 taxation, which is expected in early December.
While Ontario municipalities may incur debt up to a maximum ratio of the annual principle and interest payments of 25% of the municipality’s net revenues, council has set a guideline of a maximum 20%.
Snarr said the ratio as of the 2012 fiscal year is 7.3%.
After the debt outlined below has been issued for the Elora waste water treatment plant in 2014, the ratio is projected to be in the range of 10 to 11%.
A $10 million loan (and $1 million grant) through the Federation of Canadian Municipality’s Green Municipal Fund (FCM-GMF) will be advanced early in the fall of next year for the Elora wastewater treatment plant project.
The agreement between FCM-GMF and the township requires the township to issue a debenture to the Federation of Canadian Municipalities (as trustee of the Green Municipal Fund). The term is 20 years with a rate of interest expected to be 2%.
“We anticipate a modest operating budget surplus for 2013. The rule of thumb for an acceptable operating year-end surplus, or deficit, is plus or minus 5% of total budget.”
Snarr noted that Centre Wellington has generally been well within this range.
“A few years ago, council adopted a policy to transfer any year-end surplus to the capital fund, although in recent years some has been directed to top up under-funded reserves, like the winter maintenance reserve. A preliminary amount will be known by late January, and a firm number will be determined by mid to late February. This year, staff plan to follow the aforementioned policy.”
He noted other possible budget impacts include:
– OLG slots: while the future of the Elora facility seems more certain than it was at this time last year, some uncertainty still exists;
– impact of changes to the 10-year capital forecast, starting with the 2015 budget, from the asset management plan;
– emerald ash borer – impact on the urban forest; and
– the continuing reduction of OMPF funding. There may be a slightly larger reduction in 2014 ($99,900 in 2013).
Council will receive submissions from registered delegates at the Dec. 3 meeting. Those wishing to make a submission are requested to register with the clerk at 519-846-9691 ext. 242 by 12pm on Nov. 27.
A copy of the draft 2014 capital budget will be available on the township’s website by Nov. 22 at the following link: http://www.centrewellington.ca/departments/finance.
Paper copies will be available at the Sportsplex in Fergus, and at the township building in Elora.
