Centre Wellington’s budget committee is recommending a 1.9 % local tax increase for 2014.
For residents, it means a $17.09 increase to the local portion of the tax bill – based on an assessment of $307,500.
Last December, councillors approved the capital budget. On Jan. 29, a $19.9 million operating budget was presented to members of the budget committee.
Finance chair Fred Morris commented that prior to deliberations on Jan. 29, “A tremendous amount of work has gone into this budget.” He said staff has been working for months and months pulling all the numbers together.
“I think that needs to be acknowledged and appreciated from the beginning. This kind of document doesn’t just drop into your lap without a tremendous amount of time, effort and thought,” said Morris.
The capital component was addressed in December, he added, explaining, “Last year, we discovered as we went out to tender early, we got better pricing on our projects.”
Morris said following that format “we are eager to see when the tenders go out for 2014, what savings can be realized by the township as a result of that.”
Morris noted the township had booked three meeting days for the operations budget, but the committee was able to reach its decision within four hours on the first day.
“During every budget I’ve chaired, I’ve had one priority in mind. I want it to be in the best interests of the community that I serve,” said Morris.
“I truly believe that in looking through this document, this budget looks after the needs of our residents today and what the community is going to look like tomorrow.”
CAO Andy Goldie said township staff brought the numbers together under the guidance of financial manager/deputy treasurer Mark Bradey.
“Mark spends hours and hours and many sleepless nights at home pulling together the budget,” Goldie said. “Everyone on the team tried their best to bring the best numbers they could.”
Goldie believed the process of starting early has proved beneficial, not only to share information, but to get a better idea of what council is looking for.
Bradey noted that while the operating budget included a $475,000 increase over 2013, increased assessment and other revenue sources helped to bring down the overall tax impact.
He said changes to the user-pay operating budget will not result in a change to water and sewer rates for 2014, but those fees will be used as information for a future water and sewer rate study.
Using figures from 2013, Bradey explained that of the typical Centre Wellington residential tax bill, only 25.6% stays with the township, 56.4% goes to the county and the remainder to the school boards.
Bradey said the tax-supported and user-pay operating budgets proposed no new positions.
He added that while Centre Wellington Fire Services is in the midst of recruiting volunteer firefighters, the process will not result in the volunteer complement exceeding the numbers established in 2008.
In the 2013 budget process, the capital and operating budgets were separated to allow the municipality to take advantage of more favourable tender pricing typically offered earlier in the year before competition from other municipalities begin.
Bradey said the foremost factors impacting the 2014 operating budget are:
– the township’s funding through the Ontario Municipal Partnership Fund, which was reduced in 2014 by $134,000 to $764,900; and
– transfers to equipment and reserves; Bradey said the budgeted amount of $1.06 million is up $60,000 from 2013.
Consistent with many municipalities, Bradey explained that staff wages account for almost half (48%) of the operating budget. He also noted insurance premiums have increased by about 10% since 2013.
He added the township continues its efforts to rely less on taxation and more on other revenue sources such as user fees, development charges and grants.
While increased user fees could be questioned, Bradey said at least the user has the choice of using a service.
In brief
The total tax supported operating budget (which is funded from taxes, assessment growth, fees and charges, reserve transfers, grants, special levies, etc.) has increased to $19,923,211 (up 2.4% from 2013).
The total user pay (water and sanitary) operating budget is $8,483,424 – an increase of 1.4% from the 2013 user pay budget.
The total capital budget is $13,032,890 (of which $7,386,770 is tax supported and $5,646,120 is user pay).
The $11.9 million capital budget passed in December did not include costs for equipment and vehicle replacements.
Those figures are not completed until later in December because they have a direct link to the operating budget via replacement reserve transfers.
The total tax supported budget (operating and capital) is $27,309,981 ($19,923,211 operating and $7,386,770 capital).
The total user pay budget is $14,129,544 ($8,483,424 operating and $5,646,120 capital).
Therefore the total tax supported and user pay operating and capital budgets are $41,439,525 ($27,309,981 plus $14,129,544).
Budget approval is expected at the Feb. 18 council meeting.
