Residential taxes in Centre Wellington are going up about $64 this year based on a $301,060 assessment. The local portion of that increase is roughly $18. On Feb. 1, Centre Wellington’s budget committee endorsed its $19.4-million draft operating budget.
On Feb. 1, Centre Wellington’s budget committee endorsed its $19.4-million draft operating budget.
While Centre Wellington’s levy marks a 2.1 per cent increase, the overall blended rate – which incorporates county and education taxes – is 1.9%. The budget will be officially ratified at an upcoming council session.
In December, council approved in principle its $23-million draft capital budget.
Township CAO Andy Goldie noted council was pleased with the format of the report as part of the municipality’s new budget process.
Three days were set aside to discuss the draft 2013 operating budget, but the committee endorsed the budget on Feb. 2. Operating budgets typically involve normal expenditures and revenue associated with the day-to-day provision of services.
In his report to council, financial manager Mark Bradey said the tax supported draft operating budget is $19,432,788 – up $495,015 or 2.6% from the 2012 tax supported operating budget of $18,937,773.
Bradey said the increase is comprised of assessment growth of $97,280, additional taxation of $207,551, and $190,184 of revenue from other sources.
As a result, the tax increase proposed for 2013 is 2.1% on the township’s portion of the total tax bill.
Bradey’s report also noted the 2013 draft user-pay operating budget is $8,364,430 – up $864,818 or 11.5% over the 2012 user pay operating budget of $7,499,612.
Bradey noted the increase will not result in a change to the 2013 water and sewer rates, but the information will be incorporated into a water and sewer rate study and will have an impact on rates determined by that study.
New budget process
Bradey explained that in the past, capital and operating budgets were discussed together during the annual budget deliberations, typically beginning in late February.
This year, the 2013 budget approach separated capital and operating budget discussions.
“This approach was undertaken to take advantage of favourable tender pricing that is typically offered earlier in the year before competition from other municipalities begins,” Bradey said in his report.
He added convening operating budget discussions in early 2013 allows for the inclusion of material information in the budget without making estimates.
Some of the significant amounts are: 2013 OMPF funding, employee benefit costs, 2013 growth estimates, a new memorandum of agreement with Centre Wellington employees, and the financial impacts of implementing the job evaluation and organizational review studies.
Though overall budget (capital and operating) spending for the municipality is roughly $42 million, Bradey said the $23 million capital budget has little impact on the tax levy.
The 2013 draft tax supported operating budget proposes a redistribution of the GRCA tax levy which totals $282,548. In budgets from 2010 to 2012, 55% of the levy was allocated to the environmental (user pay) budget and 45% was assigned to the tax supported operating budget.
An analysis of the information now available through the geographic information system (GIS) indicates that allocation results in an unfair shift of the GRCA levy to properties which are connected to township services; as owners are paying for the levy through both water and sewer rates and annual property taxes.
In the 2013 budget, the levy is allocated 30% ($84,764) to the tax supported operating budget and 70% ($197,784) to the environmental (user-pay) budget.
To ensure each property holder pays their fair share of the levy, owners not connected to municipal services will be assessed a special levy on their tax bills based on the assessed value of their property. Those connected to municipal services will pay their share of the levy through water and sewer rates.
More information on the 2013 budget is available at www.centrewellington.ca.
