WELLINGTON COUNTY – A 2021 budget with a 1.2 per cent increase in the county portion of property taxes was approved by county council on Jan. 28.
The increase pegs the 2021 levy at $108,828,100, an increase of $3,215,300 from the 2020 budgeted levy of 105,612,800.
County residents can expect to pay about $8 more in taxes per $100,000 assessment on the county portion of their tax bills in 2021.
The increase was reduced from a proposed 2.5% hike after a special budget meeting on Jan. 11.
After numerous councillors expressed concern about the impact of a tax increase on county residents dealing with the financial fallout of the COVID-19 pandemic, council approved a motion to work with staff on reducing any tax increase in the 2021 budget to 1.25% or less.
“County council has passed a responsible budget under extraordinarily challenging circumstances,” stated Warden Kelly Linton in a press release issued following passage of the budget.
“The 2021 budget addresses additional services, needs and supports within the community and our local economy as a direct result of the ongoing global pandemic.”
Linton added, “With a modest 1.2% tax increase, this budget balances the unique financial challenges faced by our residents and businesses with our need to continue to fund the delivery of essential services.”
“The county invests over $230 million dollars annually providing important services and programs to its residents,” said councillor Chris White, chair of the county’s administration, finance and human resources committee.
“During these difficult times we will continue to maintain these services and work to help our residents come through the pandemic.”
A report from treasurer Ken DeHart indicates that in making changes made to reach the 1.2% target, staff tried to prioritize moves that would not have a substantial negative impact on future budgets.
More aggressive revenue estimates – “so long as we’re able to meet those targets” – was one method used to lower the levy, Dehart explained.
Other changes, such as delaying by six months the hiring of a new OPP sergeant and temporarily reducing funding to Safe Communities “have some impacts on the following year’s budget because they either annualize or return in the following year,” DeHart noted.
The biggest impact was made by utilizing a higher-than-anticipated 2020 budget surplus.
DeHart said the move could be justified “as an exception only,” because the projected surplus is higher than normal in 2020 due to one-time COVID-19 funding provided by the provincial and federal governments.
“We propose to ‘phase-out’ this additional surplus over three-years so as not to have a substantial impact on any one year,” DeHart noted.
Surplus funds for 2020 are expected to total between $1.7 million and $2 million, compared to the $1.5-million surpluses the county has typically run in recent years.
Among the measures used to trim the projected 2021 levy by just over $1.39 million were:
- increased revenue projections of $142,000 for solid waste services (user-pay bag sales);
- increased revenue estimated for social housing rentals of $22,500
- increased planning revenue of $100,000;
- savings of $98,000 by delayed hiring of a new OPP sergeant until July;
- increase of $100,00 in anticipated OPP contract reconciliation revenue;
- removal of $30,000 in funding for Safe Communities Wellington County for 2021 only;
- remove Integrated Youth Services Network funding in 2021 of $50,000 (fund contributions in 2022 and 2023 to come from social services stabilization reserves);
- a $50,000 reduction to a library catalogue replacement project; and
- transfer of $800,000 in 2020 surplus funds from year-end stabilization reserve.
Councillor Mary Lloyd asked how the reduction in county funding would impact the local Safe Communities organization.
“It’s not going to affect their budget. They have money in reserve to operate so that doesn’t affect them at all,” explained councillor David Anderson, chair of the social services committee.
Anderson, who represents the county on the local police services board, said the delay in hiring the new officer “is not going to affect services. It’s not going to affect how we’re operating.”
The operating budget projects total expenditures for 2021 at nearly $232 million, against revenues of just under $123 million and about $34 million in capital expenditures.
Roads projects make up around 64% of the capital spending total, with social and affordable housing capital works the next largest segment at roughly 17%, followed by solid waste services at just over 7%.
Key budget measures include:
- rural broadband investment to complete the gigabyte fibre optic buildout project (a municipal contribution of $4 million over five years through the SWIFT 2.0 implementation);
- full year of recently-implemented curbside collection enhancements for county residents, including weekly recycling and organics, bi-weekly garbage, and monthly leaf and yard waste collection from April through November;
- investment in roads capital infrastructure and public works facilities over the next 10 years, including $33.7 million for upgrades to fund the replacement of the Arthur Public Works Facility (joint project with the Township of Wellington North), as well as the Erin, Brucedale, Harriston and Aberfoyle public works facilities through the forecast period;
- planning for the opening of Phase II at the Riverstown Landfill;
- funding to begin planning and initiating property acquisition for a new Erin library;
- additional resources at the Wellington Terrace Long-Term Care Home to provide improved resident care during the COVID-19 pandemic; and
- a COVID-19 Business Recovery Fund, which will provide one-time funding to assist local businesses in the economic recovery.
Prior to passing the budget, council members commended staff for altering course to reduce the levy on short notice.
“I just want to congratulate staff on finding a way to get us to the 1.25 or below target … that was all accomplished in a very short period of time,” said councillor Andy Lennox, who urged councillors to start looking ahead to the next year’s budget right away.
Noting next the 2022 levy increase is currently forecast at over four per cent, Lennox stated, “If we’re not happy with that, let’s get working on that now … Let’s not leave it until the last three weeks.”
Councillor Steve O’Neil said, “I too think we have to direct staff much sooner. It’s not fair to staff to do it three weeks before we pass a budget. I think we as a council need to be better.”
Councillor James Seeley said, “I vow to do a better job and not drop something on staff three weeks before the budget is passed.
“I did see the stress on some of our staff after that motion. However, they were able to complete the task and I thank Ken and his staff and everyone involved.”
“This shows when push comes to shove, we’re up to the task and I look forward to having an early discussion on next year’s budget,” said councillor Don MaKay.
Councillor Mary Lloyd said she was thankful the budget target was reached without taking on additional debt.
“We did make that available to the staff,” she pointed out.
“I support the budget as a step in the right direction,” said councillor Campbell Cork.
“I also think it’s important that very soon we have a fulsome discussion, so it is set out very clear to staff where we want to go not only with our 2022 budget, but with our 10- year plan.”
Councillor George Bridge said, “Three weeks is a tough time period but that’s the way our system works to some extent.
“I think next year will be a very tough year from a budget standpoint.”
He added, “I’m glad we didn’t have to borrow this year, because down the road I think we will have to borrow” in order to take advantage of infrastructure funding from upper levels of government.
Warden Kelly Linton also commended staff for their last-minute efforts to trim the budget.
“We did give them a task early this month and they not only met the target we provided, but they exceeded it,” the warden stated.
“So, thanks Ken, for your steady hand through this process,”
A motion approving the budget as presented passed unanimously.
