Guelph-Eramosa council has approved its 2014 budget with a local tax increase of 5.4%.
The budget was passed on April 7 without the inclusion of up to $260,000 in provincial funding for ice storm disaster relief. The province has promised to provide funding, but no firm amount has been released.
Mayor Chris White said once the disaster relief funding is known, an adjustment could be made to the budget or the money could be placed in a reserve fund.
The budget 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.
“Our goal as council and staff was to deliver a responsible budget that holds the line on operating expenses,” said White. “We are pleased to get a blended rate of 2.11% for our ratepayers while facing the realities of significant storm cleanup and a long, challenging winter.”
The blended rate is derived from combining township, county and education portions of the overall tax bill.
In an earlier interview with the Advertiser, 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. He said 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.
Tax impact
The 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 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 the Alma Street plant in Rockwood.
