In a special meeting on Tuesday afternoon county council agreed to consider a tax rate increase of just under 2.6%.
But that figure comes with a big if attached to it.
Wellington County and Guelph recently went through an arbitration hearing over social services expenditures, the results of which are still unknown.
The hearings and the mediator’s decision hung over the proceedings like the sword of Damocles because the loser is going to have to find a large amount of money to make up extra or unpaid costs.
Councillor Lou Maieron said hitting a budget figure of 2.5% is “a pretty good target to hit,” but he wanted to know the “worst case scenario” if Guelph wins and, “By how much could this figure increase?”
Treasurer Craig Dyer said for the 2010 budget, the worst case scenario is a cost of $4-million, which could mean a percentage increase in the tax rate of 5.5%, making the tax increase a total of 8.1%.
Councillor Rod Finnie asked if staff have prepared any contingencies if the county loses the hearing. He did not like the idea of just adding the 5.5% increase to the tax levy.
“We definitely should have different avenues of approach, so it’s not all borne by the taxpayers,” said Finnie.
Dyer said his staff has given some thought to the issue – “both positive and negative.” He said if the county wins, it will have a “significant surplus,” but he also hopes to have ideas how to handle the 2010 budget whether the county wins or loses.
He added the mediator might also decide a time frame for shifting charges if Guelph wins and that could have implications for last year’s county budget. He said that is why for many years he has advocated looking at the five-year plan when doing annual budgets.
Warden Joanne Ross-Zuj said the “solution is not just to add it onto the tax base.”
The budget council will consider on Jan. 28 includes a $70-million tax levy to fund a $36.5-million capital budget and an operating budget of $161-million.
The cost to taxpayers on an average assessment of a $300,000 home, is an increase of $53 in the proposed budget as it stands.
Dyer explained a number of projects and savings that were included.
In social housing, the county has applied for a $6.6-million federal and provincial grant for social housing in Fergus, which is being done in two phases.
The total cost is $10-million, with the county responsible for about $3.5-million of that. He explained, though, the project should not be using any tax dollars because the county is funding its share through borrowing, and will use the rent generated from the buildings to pay its costs.
Overall, Dyer said, the budget is ‘conservative and responsible.”
Ross-Zuj called it “a good News budget and thanked committee chairmen and staff for their work on it.
There were a few contentious issues.
Maieron noted Guelph is planning to spend over $685,000 for new facilities in the south end of the city, which includes ambulance service. He wanted to know why the county would consider funding that project, particularly since the need for improved service in Erin has been ignored by Guelph to date, and the ambulance committee that is part of the joint city and county social services committee has not met in four months.
Maieron said Guelph Mayor Karen Farbridge had written to him and Erin Mayor Rod Finnie and told them if they want to improve that service, they should fund it themselves. “Why are we paying $700,000 for the south end?” he wondered.
Councillor Gord Tosh, the chairman of the social services committee that oversees the ambulance operation that is under Guelph’s jurisdiction, explained Guelph has funded other joint ventures with the county. When the county bought and refurbished the old Guelph post office and moved social services into the building, “the city paid its share to that building. They decided the same thing. They wanted a new facility. As they contributed to ours, we contribute to theirs. The rationale is that we work as partners.”
Tosh said the county asked the city for a meeting on the Erin ambulance issue, and got the impression Guelph wanted to wait until the arbitration issue is settled, and then sit down and discuss it.”
Maieron thanked Tosh for his answer, but added it will be difficult for rural residents in his area to contribute to city facilities when their services is not meeting response times set by the province.
Puslinch library
Councillor John Green said the county had approved its five year plan with $1.5-million for a Puslinch library, and he wondered how that suddenly increased to $2-million.
He said county council has not yet seen the library budget report seeking an increase, and he wondered when council will formally get to deal with it.
Dyer said the entire budget will come to council next week a the Jan. 28 meeting.
Green replied that the county finance committee had met that day, “but now it’s in the budget.”
Committee chairman and Puslinch Mayor Brad Whitcombe said the issue was to increase the size of the library, and that the cost is in the five year plan for 2011.
But councillor Mike Broomhead sits on that committee and he was surprised the issue did not come to the finance committee. “John Green is correct,” he said.
Ross-Zuj said the figures would be in the budget package for next week.
Dyer said the allocation is $1.5-million for this year, and the remainder next year. But, he said, Green is correct in noting that it has changed from the five year plan council had approved in the fall.
Councillor Chris White said when council considers its budget Jan. 28, “That will be the time to pull that out.”
But Broomhead wondered when the work will be sent to the architects to start the design. He thought it would be prior to the council meeting.
Ross-Zuj said the work goes to the architects in Feburary.
Council voted to send the issue to its meeting Jan. 28 for a full budget discussion.
Terrace bills due
Dyer said in an interview after the meeting that the county has now formally filed its lawsuit against Guelph for funds it believes it is owed for the Wellington Terrace that was built in 2005.
Guelph pays the county for citizens from the city using the facility.
Dyer said Guelph refused to pay the $2.4-million for its share of the costs to December 2008, and the bill for 2009 could be another $700,000 to $800,000.
The city has balked about paying the debt services charges the county used to build the seniors’ home at Aboyne. The county borrowed just under $25-million for the new building.
