Wellington County council has adopted a 2017 budget with a 2.9 per cent increase in the county portion of property taxes.
However, the size of the increase didn’t sit well with some councillors, as the budget was approved in a 10-6 recorded vote on Jan. 26.
The budget includes increased investment in roads infrastructure. Over the next five years the spending plan addresses 18 of the 32 bridges and culverts requiring replacement and 55% of the $70.9 million in projects required over the next decade, as identified through a needs study.
Other highlights include:
– construction of 11 new affordable housing units in Palmerston;
– implementation of an ambulance response time improvement plan, including the addition of four paramedics to serve the Town of Erin, enabling a 24-hour operation there;
– the third installment of a $9.4-million municipal investment in the county’s three local hospitals;
– the third year of a five-year municipal investment in fibre optic technology as part of the Southwestern Integrated Fibre Technology (SWIFT) program;
– construction of a new Hillsburgh library;
– a full year of expanded rural waste and recycling collection; and
– staffing enhancements at Wellington Terrace to provide behavioural supports for the increasing number of residents with dementia and additional shifts to support the rising level of care required at the facility.
A total of five staff will be added at Wellington Terrace, as the total county workforce will expand by 7.3 positions in 2017.
Councillor Chris White, chair of the county’s administration, finance and human resources committee, noted the Terrace positions are partially funded by the province and another position in social services is totally funded by the upper tier.
“We always try to keep the growth of government down. We don’t like doing this, but there are times when its necessary,” White said.
He noted the 2.9% increase represents a decrease from the 3.3% tax hike projected in a draft presented to councillors on Jan. 9. White said the reductions were achieved by funding new emergency management software and some road projects from reserves.
The total levy requirement in the budget is $91,605,400, up 4.1% from $87,885,000 in 2016. Factoring in assessment growth results in a tax impact of 2.9 per cent, equal to about $18 per $100,000 worth of assessment per individual taxpayer.
In total, the county will spend $220.2 million, with salaries, wages and benefits making up 27% of the total, social assistance 25% and purchased services 13%.
Of the $91.6 million to be raised by local taxation, almost half (46%) will go to roads (28%) and policing (18%). Social services, long-term care and health and ambulance makeup another 25%.
A planned $31.5 million in capital expenditures includes $16.7 million for roads and bridges, $4.1 million for library projects (including $3.8 million for a new Hillsburgh library), $7.2 million on repairs and enhancements to social housing (including $3.2 million for housing units in Palmerston), $362,000 on ambulance services, $340,000 on solid waste services and $80,000 for emergency management.
White said the county could have kept the tax increase to 1.6% were it not for the impacts of a higher Municipal Property Assessment Corporation (MPAC) levy, reductions in the Ontario Municipal Partnership Fund grant from the province and increased utility costs.
“This budget shows that the county remains focused on core services, including roads, bridges and solid waste,” stated White in a press release issued by the county.
However, several felt the tax increase was too high.
Councillor Don McKay was the first to say he couldn’t support the budget.
“I feel that although we’ve worked very hard to try and get it down, we’re still not down far enough that I think we can go back to our residents – and a number of them are having a difficult time with the taxes they have to pay, especially the elderly, especially new families – I think we can work to get the budget down to at least two per cent from 2.9,” he said.
McKay stated he also has concerns about the county’s budget process. He noted that while in lower tier municipalities councils spend months working on a budget, “we in the county, which has a substantially higher amount of taxes from residents, do it in a matter of weeks.”
McKay suggested the county could take funds from reserves to keep the budget down.
“We have $66 million in reserves. To get it down one per cent takes about $900,000,” he said.
Councillor Pierre Brianceau said council can’t “wish away” the impact of the things like the levy and utility rate hikes.
“The provincial government just give us a hit of $800,000 between MPAC and the hydro,” he stated.
Centre Wellington Mayor Kelly Linton also said he wouldn’t be supporting the budget.
“And I’m not being critical of staff. I think we got all the information we need,” stated Linton. “I think the county level of government has been growing too fast for several years now.”
Linton said the county has added 20 new staff members since 2015 and “the staff compliment can’t keep growing at that level.”
Linton stated, “In lieu of a strategic plan I won’t be supporting any budget that comes out of the county that isn’t at the level of inflation.”
Councillor Doug Breen stated the increase on providing hard services “tends to run pretty close to inflation,” but “then you get into the capital thing and it becomes a lot more nebulous.”
Breen cautioned against cutting vital infrastructure projects to save money in any one budget year.
“It’s really sobering to sit on the roads committee and realize just how far behind we actually are … someday down the road we’re going to have to deal with this.”
“I’m going to support the budget,” said councillor Lynda White. “I think the committees have worked hard to take out what they feel is unnecessary. Our residents, yes, expect us to watch the taxes, but they’ve also come to expect the services that we enjoy in this county.”
Minto Mayor George Bridge reminded councillors that while municipalities access only 9% of all tax revenue, they are responsible for 60% of infrastructure.
He pointed out Centre Wellington has instituted a special 2% infrastructure levy for bridge projects in the past several years.
“When you think about it this (the county increase) is 2.9 with infrastructure in,” said Bridge.
“I don’t see this as a problem budget. I’ll be supporting it.”
Councillor Shawn Watters said regardless of the amount of the proposed increases, “people do not have any more money.
“They can’t afford to spend another two per cent. They don’t get wage increases of two per cent. People can’t afford it. I won’t be supporting it.”
Councillor Gary Williamson said council is paying now for decisions to hold down taxes in the past.
“The fact remains we can’t afford not to put a significant increase in to address infrastructure. If we don’t do it now, your grandson or granddaughter is going to be in a lot worse position in 35 years,” Williamson stated.
“I support this budget, I’m not sure 2.9 per cent is enough, but realistically we do have to look after the citizens we’ve been elected to represent. Maybe we shouldn’t have been in the library business. Maybe we shouldn’t have been in the Green Legacy business. Maybe we shouldn’t’ have been funding hospitals – but we are,” he continued.
“We need to have taxes and have an increase, that is not debatable. But what that number is, we need to talk about,” said councillor Gregg Davidson.
“I know that residents can’t afford ($18) per $100,000 of assessment. That’s not something they want.”
McKay suggested putting off the decision for further study.
“What is the problem of deferring this budget for a month and having the opportunity of having another look at it? Is there a panic that we have to have it today? From what I hear around this table there is some uncertainty.”
At McKay’s request, Warden Dennis Lever called for a recorded vote on the budget.
A motion to approve the budget was carried, with Brianceau, Chris White, Lynda White, Breen, Lever, Bridge, Williamson, Erin Mayor Allan Alls and councillors Rob Black and Dave Anderson in favour.
Opposed were: McKay, Davidson, Linton, Watters, Wellington North Mayor Andy Lennox and Mapleton Mayor Neil Driscoll.
After the budget was approved Lever thanked treasurer Ken DeHart and department staff for their efforts and urged councillors to begin thinking ahead to next year’s budget.
“If you have a concern don’t wait until this time next year to express your concern. I would appreciate that,” Lever said.
In response to concerns about the budget process, the warden noted, “We actually got into capital back in November.”
He also noted, “Staff are not just looking at this year. They are trying to project out as well.”
Prior to the debate on the main budget resolution, council approved a separate resolution to approve the library portion of the budget.
Black declared a conflict of interest on the library portion, as his wife is employed by the county library system and he did not participate in the discussion or vote.
