It looks like Wellington North’s budget will remain essentially unchanged.
A last minute resolution to include an extra $40,000 to bolster reserves was turned down by the majority of councillors on May 16.
Prior to council’s adoption of the bylaw finalizing the budget, finance chairman Andy Lennox made a pitch to take another look at what has been set aside in reserves.
Lennox said having gone through the budget process, “One of the issues which still remains, in my opinion, not entirely satisfactory is the amount of money we’re setting aside in reserves for capital items.”
He said the municipality has over $200-million in assets, and only $1.5-million is being put into renewing those assets. At that rate, he estimated it would take 136 years to accomplish that goal.
“We all know that is not realistic,” said Lennox.
In order to avoid incurring large amounts of debt, he recommended a move to address that by setting aside an additional amount. He proposed an additional $40,000 in reserves, which he estimated would amount to another $11 in property taxes.
Mayor Ray Tout agreed in principle.
“As a taxpayer myself, I’d personally be willing to spend $11 a year to building those reserves. I think it’s a very smart move,” he said.
At the same time, Tout said “It’s going to be a tough year to start with for the township, financially. We knew that coming in. But if we don’t build up the savings, we have to remember it’s not going to be a rainy day – it’s going to pour.”
Lennox added the move would just be a small step, and would not solve everything.
“But if we begin to make some steps forward, maybe we could start to address this in the long term.”
Tout asked for clarification if the budget amounted to a Wellington North only increase of $28. “If you assume no increases to assessment.”
Tout asked if that meant the bill would then go from $28 to $39.
Lennox said the $11 would be on top of the taxes, resulting from the increased tax shift plus the resulting increased assessment. That amount, he said, was about $82 and the reserves fee would be on top of that.
Councillor Sherry Burke supported his theory. She added she had heard nothing negative on the streets regarding the proposed budget. But because the public meeting was already held, she questioned how the public would receive an additional change.
Councillor Dan Yake agreed with Burke.
He, too, believes the theory to increase the reserves is good.
“The problem is because of the meeting last week, although it is not a huge change, it is a change.”
He suggested it was more of a timing thing.
Tout agreed no one likes change, nor do they like increases. “But doing the math going forward, $11 might make that difference going forward.”
Councillors defeated the amendment.
Lennox was in favour, but the rest of council voted against an extra increase. Tout did not vote.
Yake added he agrees with the idea of getting more into the township reserves. He believes with more time, Lennox will be able to develop appropriate numbers.
Tout repeated earlier comments that council knew it was going to be a tough year.
“Certainly councillor Lennox and staff have done a good job keeping this down as best they can.”
Tout said council will need to be very mindful of its reserves – “to build them up.”
Council subsequently endorsed the budget.
When asked at the end of the meeting if the budget was the same as presented the previous Monday, Lennox said it was.
“The numbers are the same.”
