A 2.8 per cent hike in Wellington County taxes is being considered by council as it reviews its budgetary requirements for 2014.
Council held a special budget meeting in Aboyne on Jan. 3 to review current budget needs and a preliminary five-year forecast presented by treasurer Ken DeHart.
Department budgets for 2014 will go back to committees for further review, with a final budget expected to be adopted by council at the end of January.
A 2.8% increase in this year’s budget, if approved, will translate into a $26 hike for every $100,000 in assessment per household, DeHart told the Advertiser.
The plan is for an operating budget of $184.1 million this year and capital expenditures of $28.2 million.
On the operating side, based on levy requirements, roads and police will each account for 22% of the total. Social services, the Wellington Terrace and library will make up 9% of the levy; administration 8%, health/ambulance services 7%, solid waste services 6%; planning, green legacy and emergency management 4%; and the county museum 2%.
Councillor Lou Maieron urged council last week to look for ways to further trim the budget.
“Our taxpayers are at a point where they’d like to retain a bit more money,” Maieron said. “There’s not the appetite for increased taxes.”
Maieron agreed the proposed 2.8% hike was a good point from which to start to trimming.
“I get a lot of seniors telling me ‘I have to move out of town because I can’t afford to live here,’” the Erin mayor added.
Erin county councillor Ken Chapman also urged council to limit any tax increase to assist those on fixed incomes, such as pensioners.
“I don’t believe the 2.8% is going to be really bad, but we have to realize this county is getting older and older,” Chapman said.
Councillor Don McKay pointed out lower tier municipalities will also benefit with a lower increase at the county level.
“If we can keep it to (around) 2% that will give (county) municipalities the leverage to provide more services,” said McKay.
Councillor Ray Tout said he could support the proposed increase.
“We still have to pay into the pot to provide our services because Wellington County is going to grow,” said Tout.
Councillor John Green, chairman of the county administration, finance and personnel committee, which will have a final look at the budget before it goes to council, noted the county has managed to keep budget increases to an average of 2.5% over the past three years.
Efforts will continue to trim the budget, he added.
“To send a message back to the people Lou (Maieron) talks to, we’re not doing a bad job,” Green said.
DeHart, in his five-year forecast to council, projected the county could face higher increases in the next two years – 4.3% in 2015 and 4.5% in 2016 – based on reduced Ontario Municipal Partnership Fund (OMPF) grants to the county.
The county’s allocation has been cut by nearly $650,000 from last year to $3.6 million.
The county is expected to cut a grant to its lower tier municipalities – from $350,000 to $200,000 – for money available on a matching basis for work associated with a proposed $24 million Active Transportation Plan.
The decrease was welcomed by councillor Gary Williamson, who felt municipal contributions should be reduced to allow the lower tiers to concentrate on efforts to maintain roads and bridges.
The county will also benefit from assessment growth of about 2.13% – up from the 1.13% estimated in November, DeHart said.
In the five-year forecast, it’s expected the cost to refurbish the Carnegie library in Palmerston will increase by $1 million to $3 million when the work gets underway on the three-storey structure in 2015.
It’s anticipated the county will spend $112 million on capital projects over the next five years. Eighty-five per cent of the work will be funded from the tax levy and reserves, with another $5.1 million coming from development charges.
The county will also see growth in its reserve funds.
“County’s reserve and reserve fund balances totaled $65.2 million as of December 31, 2012,” DeHart said in his report.
“Debt outstanding will top out at $38.5 million, DeHart said. “Debt servicing costs will top out at $5.1 million – $4.5 million tax supported, $627,000 development charge supported. Debt servicing costs as a percentage of the county tax levy will not exceed 6% over the five-year plan.”
DeHart noted the level is far below the maximum allowed by the province for debt taken on by municipalities
“The county’s debt levels are very low and manageable,” he said.
The treasurer noted councillors will have three opportunities to view, debate and change individual budgets as they move through the different county committees.
Warden Chris White credited county staff and committees for bringing forward a “good” preliminary budget.
“I think it’s a pretty good budget,” White said. “We’re trying to keep things down.”
