A year-end surplus in Erin will make all the difference in the world to local taxpayers.
Though the 2013 budget is slated for official approval in early March, the budget appears to be coming in with a local increase of roughly 15 per cent.
The decision came at a special budget meeting held on Feb. 20 as council approved the budget and directed staff to prepare the appropriate bylaws for the March 5 meeting.
Council had struggled since late last year to find a way to drop the local rates down, when it appeared local tax rates would jump by 17%.
Of that increase, over 14% was comprised on non-discretionary items – primarily within the operating budget.
Finance director Sharon Marshall said the blended increase, taking into account tax rates for Wellington County (2.4%) and local school boards (-4.1%), is about 4%.
The third draft of the 2013 budget which came in with a proposed 18.8% increase to the local tax bill.
That proposal came in with an operating budget of $4.8 million and a capital budget of only $665,000.
That would have resulted in a blended tax increase of 4.9%
The saving grace appears to be the 2012 year-end general surplus of $278,000.
Marshall explained that surplus was placed in reserves.
She then explained $203,000 was transferred from the town reserves to offset the impact to the 2013 budget.
Marshall noted “there were not really any cuts between (budget) draft 2 and 3.”
In fact, the budget had gone up with grant money allotted to local groups and organizations.
Council is slated to formally approve the budget on March 5.
