It took some cutting, but Wellington North staff has presented council with a preliminary 2014 budget with a 3.1 per cent hike in taxes.
For an average home assessed at $202,000 the increase means a tax hike of $2.77 for municipal purposes.
The revised budget, trimmed from a preliminary increase of 8.9%, was presented to ratepayers at a public meeting on May 1.
If approved by council at its May 12 meeting, the new budget would represent a $186,900 increase from last year – from $6,054,625 to $6,241,545.
“We had some challenges this year because of changes in personnel,” CAO Mike Givens said, referring to the recent hiring of new treasurer Paul Dowber in March and the resignation of fire chief Jeff Dahms in February.
The township continues to build on its reserve funds.
“The total capital budget for the township is $3,430,000 – of that $1,102,035 is coming from reserves or reserve funds,” Givens told the Advertiser.
“The amount being transferred into reserves or reserve funds in 2014 is $1,646,053. This includes the Federal Gas Tax of $342,000. The above figures also reflect water and sewer (changes).”
Givens said the township continues to maintain its reserves in order to be prepared should a capital project receive provincial or federal funding.
“(We want to) have money in reserves and reserve funds in anticipation of possible provincial or federal grants so these could be ready to go,” he said of the quick turnaround that is often attached to grants.
Mayor Ray Tout credited staff with department budget cuts to bring the overall tax increase to 3.1%.
It was a level requested by council when the preliminary budget was first unveiled in mid-March.
“There’s been challenges to reduce budgets to benefit our taxpayers,” Tout said.
He also noted the continued decline in debt held by the township, which at one point was about $12 million. According to the Givens debt is expected to be at $7.8 million at the end of this year, with township looking at paying $1.25 million in principle and interest.
“We’re finally getting the boat turned around into the wind,” Tout said. “It’s taken three years to get here.”
Councillor Andy Lennox, head of the township’s finance committee, said the budget still leaves the township short about $1 million in capital work council would have liked to have done.
The levy increase will also mean a reduction for residents whose properties have not been reassessed.
Resident Scott Hartle asked whether he would see a reduction in the $5,000 he pays in taxes with no reassessment of his property done.
“For a typical single family home (a property that represents an assessed value at or near the midpoint of assessed value and a per cent change in assessment for the year near the median), assessment increased from $199,000 to $202,000 and township taxes change from $1,077 to $1,080,” Givens said.
“Total taxes (township, county, education) change from $2,820 to $2,811, based on a 3.1% levy increase from 2013 to 2014.
“The total tax rate is declining from 0.01417105 to 0.01391800, so if your assessment did not increase you will be paying less taxes in 2014. This is for residential properties and does not include streetlights. Most residential properties are increasing in assessment due to phase-in around 2 to 3%.”
Resident Shep (Gerald) Shepetunko said he noticed the preliminary budget does not include a $1-million donation to Louise Marshall Hospital in Mount Forest, which would be put toward a $5-million fundraising campaign to rebuild the hospital emergency room and ambulatory facilities.
“There’s been no serious consideration (of it) in this budget,” he pointed out.
Council has been considering the request and is expected to discuss the donation at its May 12 meeting.
“It’s probably going to end up in the 2015 budget,” Tout said.
Capital projects included in the preliminary budget include reconstruction of Frederick Street in Arthur (pegged at $772,000), replacement of a plow truck ($240,000), replacement of header pipes for the Arthur community centre ($90,000) and replacement of accessible doors at the community centre ($28,000), and $345,000 worth of work to strengthen the structure on the Concession 6 bridge.
Council is expected to approve the budget at its meeting on Monday night.
