County council adopted its 2016 budget with a 2.5 per cent increase in property taxes on Jan. 28 – but not without some heated debate on the county’s fiscal direction.
The increase of about $3.3 million over the 2014 levy brings the total county levy to just under $87.9 million. Taxes on the average residential property in Wellington will rise by an average of 1.35%, or $15 per $100,000 of assessment, treasury department figures indicate.
The levy increase was reduced from 2.8% in a draft presented at a council budget session earlier this month after further discussion at the committee level.
Treasurer Ken DeHart told the Advertiser the reduction was accomplished by drawing $260,000 from a reserve fund for work on the county’s new maintenance shop to be built in Mapleton.
In total, the county will spend $191.7 million in 2016, with social services accounting for 41%; roads 13%; Wellington Terrace 11%; policing 9%; administration 6%; solid waste services 5%; libraries 4%; health/ambulance 3%; planning, Green Legacy, emergency management and museum operations combining for 3%; and other areas 5%.
Of the local levy, roads consume 25% of the total; policing 19%; social services, administration and solid waste 9% each; libraries 8%; health/ambulance 7%; planning, emergency management and Green Legacy 4%; museum operations 2% and other areas 2%.
Property tax, at 46%, represents the largest single revenue source offsetting the $191.7 million in spending, with grants and subsidies accounting for 28%, while user fees make up about 4%, and other revenue sources total 22%.
“This budget ensures the county is well positioned for growth in the years ahead”, stated Warden George Bridge in a press release.
“It balances a plan to renew and improve existing county infrastructure and services with key investments designed to ensure and enhance the county’s economic competitiveness well into the future.”
Expenditures in the budget include:
– the second installment of a $9.4-million contribution to the county’s three local hospitals;
– $13.7 million for the construction of 55 new affordable housing units at Webster Place in Fergus;
– $13.4 million for roads and bridges “to maintain a safe and efficient transportation network across the county”;
– construction of a new Hillsburgh library ($1 million in 2016, $3 million in 2017);
– rehabilitation of Wellington Place Lands as part of Canada’s 150th anniversary (funding through Canada’s 150th grant program and community donations);
– the second installment on a five-year $1 million county investment in fibre optic technology as part of the Southwestern Integrated Fibre Technology (SWIFT) program;
– implementation of the Wellington Signage Program to include welcome signs on Wellington boundary roads and way-finding signs on county roads;
– funding to host the 2016 International Plowing Match in Minto ($250,000, of which $200,000 is from a reserve fund);
– upgrading of the county fire paging system to improve emergency management; and
– building a new public works facility near Drayton ($3.5 million in 2016, $500,000 was spent in 2015).
“With this budget, the county continues a history of investing in vital programs and services in a fiscally prudent manner,” stated councillor Dennis Lever, chair of the county’s administration, finance and human resources committee.
“I want to thank council and county staff who worked hard to prepare this budget.”
County council approved the budget by a 12-2 margin. Lever requested the vote be recorded after two councillors expressed concerns about the budget process.
Wellington North Mayor Andy Lennox and Centre Wellington Mayor Kelly Linton voted against the budget. All other councillors voted in favour except for councillor Rob Black, who declared a conflict of interest because his spouse works for the county, and Erin Mayor Allan Alls, who was absent.
Lennox, for the second year in a row, expressed concern with the process of developing the budget through the committee system and said he would like to see council discuss budget priorities as a group.
“It should not come as a surprise to anyone … I am not in favour of the budget and five-year plan,” stated Lennox after a motion to approve the budget was introduced.
“This council as currently constituted has not had a session to talk about priorities.”
The county’s current five-year forecast calls for levy increases between 2017 and 2020 of: 6.2% ($94 million), 4.9% ($100.1 million), 3.3% ($104.5 million) and 3.8% ($109 million). That contrasts with levy increases ranging from 1.9 to 2.8% between 2012 and 2015.
“I believe the priorities laid out in this budget, and five-year plan in particular, do not reflect the priorities of taxpayers,” Lennox stated.
“We’re spending still more dollars to upgrade libraries. Who’s asking for that?” Lennox asked, adding, “Yet I consistently hear residents asking for upgrades to solid waste services.”
Lennox said the county “is on an unsustainable path and one that is contrary to the wishes of our taxpayers and citizens.
Lennox argued the county has “modest and very manageable debt levels” and “reserves that allow for sustainable stability” and questioned a taxation approach that “is increasing county’s wealth in significant and real dollar terms.”
Lennox said from 2009 to 2014 the county’s accumulated surplus has risen by 3.4% annually, “well above the consumer price index increase of 1.7 per cent.”
He said the county has taken “a very healthy increase” in reserve and reserve fund balances, almost 8% annually over last seven years.
“Most municipalities could only dream to be in this position,” he stated.
While acknowledging the county must “manage the finances to meet both the current and future obligations,” Lennox asked, “How much of the taxpayers’ wealth do we need to hold before it’s enough?”
Lennox said given the county’s financial position, he could craft a financial strategy “without any net dollar amount increase in debt and any net increase in reserves and still present a plan in which tax increases would be held to 2.1 per cent over the next five years.”
He also wondered “Are we short-changing our residents and taxpayers because the sheer strength of our financial position makes it impossible to receive grants from our federal and provincial partners?
“I appeal to you for a full-council discussion as soon as possible … to discover what our priorities really are.”
Lever said he would have appreciated receiving Lennox’s comments at the finance committee meeting, in order to have time to prepare a response.
He pointed out a large portion of the county’s budget is devoted to social services “and we don’t set priorities for social services.”
Lever noted that “despite the money that we do have,” the county does have “an infrastructure deficit” and needs to “focus on asset management.”
Lever said he thinks of the county’s five-year plan as a “forecast” and pointed out projects identified in the document are not approved until the annual budget for that year is passed.
“Certainly we see a very large increase, as currently proposed, in 2017,” Lever said.
However, he pointed out the increase is due to the inclusion of two large capital projects: replacement of the Badley Bridge in Elora and the construction of the new Hillsburgh library.
“I certainly wouldn’t support funding these two long-term projects, they’re going to be around for many years, (in the 2017 budget alone),” said Lever. He suggested the tax impact of those projects will probably end up being spread out over a longer period.
While Lever said he would be “happy” to have further discussions on budget priorities, he doesn’t want to “spend hours and hours talking about what’s in year two and year three,” of the five-year plan.
Linton told council, “I understand the difference between the role of council and the role of staff,” in the budget preparation process.
“What we’re missing is the strategic priorities,” said Linton, who added he is not suggesting a multi-million dollar strategic planning process is what’s needed.
“What we do need is a forum where we have discussion about what our priorities are … is a library on a lake more important than five bridges?”
Linton said council must determine “are our priorities reflective of the priorities of our citizens.”
Linton also asked if Centre Wellington could include the county logo on tax bills sent out by the township, “because I’m getting very sick of explaining to our citizens that 57 per cent of that tax money goes to the county.”
‘People don’t read’
Lever replied that “staff is going to look at strategic planning” in the future. He also pointed out the tax bills sent out by Puslinch, where he is mayor, include “a very detailed breakdown” of how tax dollars are divided up.
“I’m looking for a symbol, because people don’t read,” replied Linton. “I’m looking for permission to put a county logo on these tax bills.”
“I’m not sure you need permission. Again, you’re printing it off,” replied Lever. “You might want to put in the education one as well.”
Councillor Chris White said he appreciates the idea of having strategic goals and pointed out “some of that is set at the committee level.”
However, White stressed, “the money that the county’s putting aside (in reserves) – this isn’t some alien body – this money is being invested in our bridges, in our libraries, on solid waste services …
“I don’t’ want anybody leaving this room with the impression that the county is some foreign body just getting rich and stacking money away. This money is being re-invested in the county.”
Lennox replied, “I wasn’t trying to insinuate that this money was going somewhere else.” He added he is simply asking for a full-council discussion on budget priorities.
“One of those priorities may be that we need to amass more wealth. But maybe not. We’ve never had that discussion and I think it’s long overdue,” said Lennox.
“I think councillor Lennox has some good points,” said councillor Don McKay, who agreed the county could do a better job “making sure our residents understand what the county is responsible for and where our money goes.” He suggested the county could hold a budget open house or workshop sessions for the public, similar to those held by lower tier municipalities.
Bridge ‘frustrated’
Warden George Bridge said, “We had nine new councillors at he start of this term and we tried as best we could for people around this horseshoe to be educated – we went out of our way to do this.”
He added, “It’s up to the mayors and county councillors out there, you’re our people who are out on the street … we could have all kinds of open houses,” said Bridge, pointing out the Town of Minto has a budget open house every year “and the maximum number of people I got out to one was three.”
Bridge continued, “we can do this to death. I think we can do a better job explaining it … when you see these reserves and you see the debt going down, there’s a plan there.
“I’m getting a little frustrated,” Bridge continued. “We’ve spent a lot of time and effort to try and educate everybody here and I think the county gives everyone a chance to voice their opinion. I don’t look at things three or four years out because I know we’re going to discuss it.”
Regarding money allocated to the Hillsburgh library, Bridge stated, “I don’t think it’s this council’s turn to say, ‘Okay Hillsburgh, you’re last so you don’t get it.’”
The Hillsburgh project will complete the county’s program of replacement or renovation of Wellington libraries, which began with the opening of the Erin library at Centre 2000 15 years ago.
Bridge also suggested Lennox could have provided his comments to Lever prior to the council meeting.
“I was very clear in committee that I was opposed to the budget and five-year plan,” said Lennox, adding he prepared his address to county council the previous evening.
“I’m not trying to prescribe here … the appropriate action for this council to take … I just believe a discussion should take place about what our priorities are.”
Councillor Neil Driscoll said, “we should be thanking the previous councils and staff for putting us in the position we are in today.”
He said if previous Mapleton councils had taken the same approach to financial planning, “I wouldn’t be struggling to try and figure out how to give my citizens the infrastructure that we need.”
Driscoll added, “I don’t disagree with anyone’s comments today, but the committees are the places that we can really get our voices heard. I just encourage you to participate.”
Councillor Doug Breen said he doesn’t believe he has any trouble getting his points across to council and feels budget issues get a full airing under the current system.
“I’m a tad incredulous that there’s some people around the horseshoe that feel like we aren’t having that discussion,” he stated.
Breen questioned Lennox’s suggestion, “that somehow being in a poor financial position would be better because we might get more federal or provincial money – I’m not following you down that road.”
Breen said infrastructure investment in the five-year plan “should probably be 10 times what it is, as we haven’t’ invested significantly for the last generation, maybe the last generation and a half.”
Even at the current rate of reserve contributions and taxation, Breen said he doesn’t know where the money will come from to fully erase the infrastructure deficit.
“I think people are frustrated by the fact that there is no idea, there is no answer to this question. We are so far behind the eight ball at this point that we have to have a serious discussion about that.”
However, he stressed, “If we’re just going to pit libraries against roads it is just a stupid discussion. I want no part of it.” Breen said he saw no point debating the merit of seniors programs versus police services.
“It’s a stupid, irresponsible discussion for us to have if we’re going to make it about just trying to get headlines by pitting one department against another and grinding it down,” he stated. “If we’re going to put on our big boy pants and discuss it … if what we’re really trying to get to is a discussion of how we solve the big problem, then I’m there.”
