Council here is considering a draft 2015 budget that projects a 3.8 per cent increase in the local levy.
The draft budget, presented to council by staff on Jan. 13, calls for about $157,000 in additional funding from taxation over 2014.
A report presented by CAO Bill White and treasurer Gordon Duff projects that, when combined with education and county levies, Minto taxpayers will probably be looking at an overall tax hike under 3%.
The report indicates the draft budget reflects a $41,000 increase in provincial funding through the Ontario Municipal Partnership Fund and the deployment of $8,000 in “tax stabilization reserves.”
An operating budget summary indicates the fire budget would increase by about $22,000 to accommodate master fire plan recommendations, including an additional $3,000 in part time wages and $8,000 to annualize wages for the shared fire inspector and bylaw officer.
Other significant operational expenditures in the draft include:
– an additional $65,000 contribution to reserves for vehicle maintenance for public works;
– $73,000 in additional road maintenance expenses;
– a $5,000 increase in the cemeteries budget for increased tree maintenance as the facilities “recover from the two ice storms and weather events”; and
– an overall increase of $28,000 in facilities operations, primarily due to wage and benefit allocations and increased reserve payments.
Expenditure declines are expected in some areas, including;
– $44,000 under economic development, primarily due to reduced debt from servicing the Palmerston Industrial Park; and
– a $15,000 reduction in building department costs due to restructuring savings and a source water protection grant.
The budget suggests a $16,000 contribution from the Norgan Theatre operational surplus toward retirement of the debt from a 2007 theatre renovation project.
The town provided $180,000 to a volunteer committee to cover a portion of a restoration project required when the theatre faced closure due to structural issues. The amount owing on the loan is down to $36,000.
Despite two consecutive hard winters, the proposed winter control budget remains unchanged from 2014.
Public works director Brian Hansen noted winter control needs are too unpredictable to forecast with any certainty.
“It just changes year to year too much,” he noted.
White added, “The last two winters have been absolutely terrible.”
Likewise, the budget draft does not factor in potential savings from current lower gasoline prices.
“Staff is not sure how long lower prices will remain,” and are also concerned the price of diesel fuel “which powers most of our vehicles has not reduced as much as regular gasoline,” the report states.
The report notes a potential increase in operational costs due to the possibility the town will be taking over operation of the Harriston Lions Medical Centre. The Lions Club is down to only three active members.
Mayor George Bridge commended staff for producing a realistic budget on the first draft.
“I find that for a starting point, this budget is very palatable.”
However, he added, “I don’t say this is going to be the end of it.”
Councillor Judy Dirkson agreed.
“They didn’t bring us a ridiculous budget in the first place, as happens in some municipalities,” she commented.
In 2014, the town passed a budget with a 2.4% levy increase over the previous year.
A meeting focusing on the capital budget is planned for March 10 and the town will host a public open house on the budget before passing it sometime in April.
Since 2012, Minto staff have provided a theme for the town’s annual budget. This year’s theme is “hit the ground running.”
The staff report indicates the theme is a reference to getting busy on core infrastructure replacement now, in light of last summer’s announcements of additional infrastructure funding through the Small Communities Fund and the Ontario Community Infrastructure Fund.
