The average residential taxpayer here will pay about $21 more in property taxes in 2014, of which roughly $14 is the increase for local municipal purposes.
Town of Minto council passed a 2014 budget calling for an increase of 2.4 per cent over last year’s budgeted tax levy.
Operating requirements of $3,798,711, combined with $371,703 in unfunded capital brings the town’s total levy for 2014 to $4,170,415, about $100,000, or 2.4% more than the 2013 budgeted levy of $4,071,753.
Adjusted for factors like in-year changes in property assessment, treasurer Gordon Duff said the levy increase is actually 1.9%, based on final 2013 figures.
Minto’s 2014 tax-supported operating budget (excluding water and sewer operations, which are not supported by taxes) will be $3,798,711, up about $59,000 from 2013 tax-funded operations. This amount includes net transfers to capital reserves of over $1 million.
New operating costs include an additional $40,000 for winter snow removal, $40,000 for public works vehicle reserves, as well funding for the newly established creative business incubator project.
A savings of $25,000 per year has been credited for decreased insurance costs, as the town recently agreed to switch insurance carriers for 2014.
The $5.5-million capital budget includes $650,000 for water meters in Clifford and Harriston, $550,000 for a new force main in Harriston, $650,000 for the 16th Line culvert, $210,000 for the 3rd Line culvert, $310,000 to expand the Palmerston Industrial Park and the Harriston Industrial Park Class EA, and over $300,000 in recreation projects, including renovations to the Harriston Town Hall Theatre, Palmerston Railway Museum and Harriston Train Station, as well as work at Palmerston Lions Park and at ball diamonds in the town.
Local roads scheduled for paving or surface treatment include Ann Street in Clifford and the Fourth Line, among others. Numerous upgrades to pumps and well systems within sewer and water infrastructure are also planned.
The only additional borrowing in the budget will be used to complete water meter installation, notes the town in a press release.
“Council set an aggressive $5.5-million capital plan for 2014,” Mayor George Bridge stated in the press release.
“Over four years about $14 million in capital work will be finished with less borrowing and healthy reserves. The town’s immediate infrastructure needs are met with a reasonable financial position moving into 2015.”
Duff agreed, saying, “We have a relatively ambitious capital budget again.”
Duff explained the 1.9% increase means the owner of an average residential property assessed at $198,000 will see a tax increase of $14 for Minto purposes.
When education taxes and the predicted Wellington County levy are factored in, the overall tax bill on a $198,000 residential property will increase by a total of $21, or 0.77% compared to 2013, Duff said.
While pleased with the limited increase in this year’s budget, both Bridge and councillor Mary Lou Colwell, chair of Minto’s finance committee, indicated concern about the future due to growing financial pressure on upper tiers of government.
“The budget is responsible for 2014, but, over the long term, sustained and reliable provincial infrastructure funding for municipalities is needed,” stated Colwell.
“It’s getting harder every single year and we’re going to come into some harder times with the infrastructure if the other levels of government do not continue support.”
Bridge said, “There’s dark clouds on the horizon,” adding he fears the province may start looking to download education costs.
“They’re going to start looking at this education thing because they’re at $3.98 billion on their bottom line and so – watch out – they’re going to be looking to put that back on the property taxes some day.”
However, Bridge said the municipality has positioned itself well, with diminishing debt levels and growing reserves.
The balance in the town’s reserves and reserve funds is projected to be about $7.8 million at the end of 2014 and the total debt load is projected to be about $6.5 million, down from nearly $8.5 million in 2010.
“I’m liking the fact that, from where we started today, our reserves are higher than our debt. We’ve put ourselves in good position to go forward,” said Bridge.
