Guelph-Eramosa council is proposing a tax levy increase of seven per cent, but officials are hopeful that ice storm funding could lessen the impact of the increase on taxpayers.
Just four members of the public attended a public meeting on March 24 to hear details about the 2014 draft budget, which includes just under $19.5 million in total expenses and about $14.1-million in revenue.
That leaves $5,387,916 to be raised through taxation this year, an increase of $355,450 or 7% over the 2013 tax levy.
Adjusted for increased assessment and other factors, the impact on most homeowners in the township will be closer to a 5.4% local tax increase, which officials say is reasonable, given a difficult year.
“We’re looking at five (per cent); we could do 25,” Mayor Chris White said, referring to the infrastructure needs that exist in the township.
He added the 5.4% increase in local taxes “will come down depending on what the ice storm funding looks like.”
The township applied for $265,000 in Ontario Disaster Relief Assistance Program (ODRAP) and has yet to hear how much of that amount the municipality will receive.
When resident Joe Aiello questioned why the funding was not included in the draft budget, officials replied they did not want to delay the budget’s passing until the final figure was announced.
“We didn’t want to include money we wouldn’t be getting,” finance manager Linda Cheyne added.
Sustainable funding sought
Resident Mark Bouwmeester asked if the township is putting enough money aside through its asset management plan to replace aging infrastructure.
Cheyne, who replied “no,” was among several township officials who noted that doing so would result in massive budget increases.
As an example, councillor Corey Woods said the township should be spending $3 million annually on roads, but can afford only $1 million to $1.5 million.
Councillor Doug Breen said “the push is on” for predictable, sustainable infrastructure funding from the province.
“It’s a province-wide problem,” said Breen. “We’re not in a position to maintain the assets.”
Noting the township tries to keep borrowing to a minimum, councillor David Wolk added, “We could easily borrow more than we would ever be able to repay.”
When it came to the overall 2014 budget figures, Aiello questioned why the township has “year-over-year” spending increases in the range of seven to 10% when everyone else seems to be operating “in a 2% world.”
White called this year “an anomaly” and said township officials are always cognizant of costs and try to keep tax increases as low as possible.
White told the Advertiser that three factors alone – the prolonged and “tough” 2013-14 winter, the December ice storm, and a $78,000 (15%) decrease in funding through the Ontario Municipal Partnership Fund – resulted in a 2 to 3% tax increase this year, and all are factors out of the municipality’s control.
Resident Adrian Sark wondered what the township is doing to attract businesses to Rockwood and Aiello also asked about a perceived lack of “vision” for the village.
White said councillors can’t control where private businesses wish to locate and council can’t concentrate solely on Rockwood, as it has an entire township to look after.
However, White noted the township is doing everything in its power to attract people and businesses to Rockwood, including a parks and recreation master plan and a business retention and expansion study with the county.
Tax impact
If passed as proposed, the 2014 Guelph-Eramosa budget means the average owner with a home assessed at $377,196 will pay $1,001 in township taxes this year, up $51 or 5.4% over 2013. The same homeowner will also pay $2,466 in taxes to the county (up $44 or 1.8%) and $766 in taxes to the province for education (down $8 or 1.1%) – for a total tax bill of $4,233 (up $88 or 2.1%).
2014 projects
Major capital costs included in this year’s draft budget are:
– $107,500 for upgrades to the township shops in Marden and Brucedale;
– $145,000 for pulverizing and paving portions of Dowler, Shanley, Henry and Station (west) streets in Rockwood;
– $210,000 for a new dump/plow truck for the roads department;
– $230,000 for fire department capital items such as extrication equipment ($48,000), a one ton pickup truck ($65,000) and drainage work on the Rockwood hall parking lot ($100,000);
– $298,500 for various water projects;
– $375,000 to purchase 22 acres of land for the expansion of Rockmosa park;
– $510,625 for an expansion and renovations at the Rockwood library;
– $800,000 for the resurfacing of Speedvale Avenue from Wellington Road 32 to the Guelph boundary; and
– over $6 million in wastewater projects, including $4.2 million for upgrades to Alma Street plant in Rockwood.
