Councillors here are trying to attain an overall tax rate increase of 2 to 3%, but that may be difficult considering large budget requests made by staff.
For example, Fire Chief Dan Callaghan presented to Erin council on April 12 a proposed list of fire department expenses totalling over $1.95-million – more than three times the actual expenditures in 2010 ($595,593).
A large portion of this year’s total – about $800,000 – will be used to build the Hillsburgh fire hall addition (the remaining $800,000 for the $1.6-million project will come from a debenture).
But at least one councillor has hinted the department’s proposed budget is too high even without the addition.
“That’s just not going to do it,” councillor Barb Tocher said of the increase proposed by Callaghan. “We have to make cuts somewhere.”
Other major capital expenses in the proposed fire department budget include:
– $400,000 for a new pumper truck for the Hillsburgh hall;
– $33,000 for a new pick-up truck;
– $20,000 for new radios;
– $14,000 for a new ATV for the Hillsburgh station;
– $9,000 for radiant tube heating and gas piping at the Erin station;
– $5,500 for defibrillators; and
– $5,000 for pagers.
Also included in Callaghan’s proposal is $285,000 for salaries and wages (up 13% from $251,821 spent last year) and $79,500 for the salary of the chief and deputy-chiefs (up 42% from $55,919 in 2010).
Callaghan explained the latter figure is up due to a $5,000 salary increase for the two deputy fire chiefs (approved by the fire committee in 2009 but never before instituted) and an increase in his own hours from 20 to 28 per week.
The chief explained he has monitored his hours, and at his current salary he is not being fully compensated for the time he is putting into the job.
“Even with this increase I’m not,” he said.
Councillors did not comment on the increase in wages and salaries – in fact, several said that it was a good thing to have Callaghan around as much as possible – but they did ask about other budget items.
Tocher wondered if it was smart to use over $300,000 in reserves to help pay for a new pumper truck and said she would like to see the department raise enough donations to cover the entire cost of the ATV purchase, and not just 50% ($7,000), as proposed by Callaghan.
Councillors John Brennan and Josie Wintersinger said they are opposed to completely depleting the reserve account for the fire truck. And councillors seemed to agree with Tocher on the ATV issue.
But Callaghan said the 27-year-old pumper truck overheats and has to be replaced. The purchase of a new truck has been put off several times, he added, and the department has other vehicles due to be replaced in several years.
Tocher asked Callaghan what could be cut from his budget. The chief said he is willing to cut his own salary but said many of the items for purchase are included to meet provincial requirements that are in place for safety reasons.
“We can cut and chop, but when it comes down to it, are you a penny wise and a pound foolish?” Callaghan asked.
Brennan said other than cutting the pumper truck purchase, there are only “nickel and dime” items with which to deal.
Mayor Lou Maieron agreed and noted if council removes capital costs, Callaghan’s proposed increase is closer to 10%, so there is not a lot that could be cut.
Brennan suggested council go through the rest of the town budget before making a decision on spending reserves for fire department items like the pumper truck. The rest of council seemed to agree.
Water department
Water Superintendent Frank Smedley presented council with a proposed 2011 budget with $1,738,028 in expenses – up 22% over last year’s actual total of $1,428,705.
According to Smedley’s budget, the water system will have over $1,57-million in revenues this year – also up over last year, based partially on a planned 20% water rate increase (for which a bylaw has yet to be passed) and also increased grants.
That leaves a $167,101 funding shortfall that he suggested be made up with reserve funds.
Major expenses in the proposed water budget include:
– $10,000 for a financial plan and rate study;
– $30,000 for water testing and sampling;
– $35,000 for water tower maintenance;
– $36,000 for technical studies;
– $219,086 for various capital projects, two-thirds of which will be covered by a grant (if the town’s application is approved);
– $384,493 for the Hillsburgh pumping station capital project; and
– $502,916 for salaries, wages and benefits (up 2%).
Several councillors inquired about installing new fire hydrants in the Mountainview subdivision, but Smedley noted the town is already depleting its reserved this year. He suggested if council wants to proceed with that work, it should be put off for a couple of years.
Other Erin departmental expenses were to be discussed at future budget meetings.
