Township council has approved, just barely, a 2014 municipal budget with a four per cent tax rate increase and a 9.8% levy hike.
Mayor Bruce Whale cast the deciding vote as the budget was approved by a 3-2 margin. Councillors Andy Knetsch and Jim Curry voted in favor, while councillors Mike Downey and Neil Driscoll were opposed.
Driscoll expressed concern about the potential impact of construction costs for a new public works shed on the budget, should an insurance claim not cover the entire cost of building a new shed to replace one destroyed by fire on Nov. 29. While insurance will cover the cost of rebuilding the shop, changes to the design of the building could result in overruns.
Driscoll suggested postponing passage of the budget until the cost of that project is clearer. “We’ve come this far. We have the budget pretty close. Would it take us that long to get it a bit firmer?” he asked.
“I don’t think we’re going to know the final numbers until we do an RFP (request for proposals),” said Whale, who estimated it might be six months before all costs are known.
Whale said the insurance money would cover any initial costs for the project and CAO Patty Sinnamon said debentures, if needed, would not impact the 2014 budget.
“I’m pretty sure we can’t wait six months (to pass the budget),” said Whale.
“I don’t think it would take six months,” replied Driscoll.
“The reality is, even a month down the road we’re going to be facing different challenges. We cannot keep deferring,” said Knetsch.
“You cannot budget for the unknown,” said Curry. “All you can do is move ahead and face the realities. After all it is a budget.”
Driscoll also expressed concern about the possibility of extra expenditures for winter maintenance causing a shortfall in the 2014 budget.
Curry pointed out this past winter was “an anomaly.”
“We haven’t had a winter like this in probably 10 years. So you bite the bullet, you make your budget and you move forward,” said Curry.
The 2014 budget calls for total spending of $7,205,429 to be offset by $2,777,429 in revenue, leaving $4,427,741 to be raised through the tax levy – 9.8% more than in 2013, when the levy was just over $4 million.
The budget projects an increase in wages of about $30,000 in 2014 over actual township wages in 2013, which totaled $2,068,835. Actual wages in 2013 were over budget by slightly more than $30,000.
In total, the budget projects capital spending of just over $1.8 million.
The increase means the taxes on a single family dwelling with an average assessment of $299,998 would increase by about $82.
After passage of the budget, Driscoll gave notice he plans to introduce a motion to have the township move to a five or 10-year capital and operating budget.
