KENILWORTH – A $25.24-million budget, with a net tax levy increase of 4.13 per cent, has been proposed by Wellington North staff.
But the numbers didn’t sit well with council on Nov. 3, and staff was directed to return next month with a smaller tax increase.
All councillors agreed the proposed increase was too high, but they had differing ideas on exactly what that number should be.
Councillor Penny Renken said an increase of less than 4% “would be a little more palatable to the public,” and Mayor Andy Lennox and councillor Steve McCabe agreed.
But for councillors Sherry Burke and Lisa Hern, an appropriate increase would sit around 3%.
“We’ve had a lot of discussion about water and wastewater rates potentially going up … and with everything going up and some uncertainty in the economy, I still I think I’d be more comfortable with it down around 3%,” Burke said.
Inflation is at about 2.4%, Hern said, and she doesn’t want the tax increase to be more than about 1% over inflation.
Bringing the tax levy increase from 4.13% to 3% would mean cutting about $140,000 from the budget, finance director Jerry Idialu told council.
The initial proposal, presented on Nov. 3, included a $11.35-million operating budget, a $9.16-million capital budget, $4.04 million in transfers to reserves and $689,434 in debt servicing.
The 2026 tax levy – the amount of tax revenue required for the budget – is up about $675,000 or 5.8% from last year, Idialu told council.
Factoring in a 1.7% increase in assessment growth brings the net tax levy increase to 4.13%.
For an average single-family home assessed at $271,636, that would mean a township tax increase of about $61.35, Idialu noted.
Idialu said the budget’s core cost pressures include employee wages, salaries and benefits; insurance; hydro; inflation; and increased conservation authority budgets.
The operating budget is primarily costs for roads (46%), recreation and economic development (22%), administration and general government (15%) and fire (8%).
The capital budget includes:
- about $4.9 million for infrastructure operation and transportation (including rural asphalt resurfacing, reconstruction of Clarke Street between Smith Street and Walton in Arthur, and other sidewalk, road and culvert projects);
- $1.5 million for fleet upgrades (including two pickup trucks and an SUV, a backhoe loader, road grader and sidewalk trackless tractor);
- $1.1 million for recreation services (including a $350,000 construction levy for the Mount Forest Outdoor Pool, upgrades to the Arthur arena, and facility and recreation master plans ); and
- $950,000 for general government (including the Arthur office parking lot, demolishing the former Sacred Heart Catholic School in Kenilworth, and IT projects).
Potential budget cuts
Township staff are set to return to council with an updated budget proposal on Dec. 1.
This proposal will include potential cuts in order to reduce the pressure on taxpayers.
Councillors suggested budget items they’d like to see deferred, including upgrades to the Mount Forest cenotaph, design work for Cork Street and Mount Forest Drive in Mount Forest, upgrades to McPherson park in Arthur, and the recreation master plan.
The request for cenotaph upgrades came from the Legion and involves removing interlocking brick and replacing it with stamped concrete.
Recreation manager Mandy Jones said the Legion would be supportive of that project being deferred.
“They’ve also offered to support us in removing the stone to try to keep the cost down,” she added.
Lennox questioned the $50,000 in proposed upgrades to McPherson park, noting he’s never seen anyone sitting in that area, outside of the annual duck race.
The proposed upgrades include resurfacing and installing a picnic area.
Lennox asked, “Have we considered … revisiting what the scope of that park’s purpose is?”
Burke suggested the recreation master plan be deferred, as it was last updated in 2018 so it’s “not really that old.”
Burke asked about a proposed renovation to the Mount Forest Fire Hall for $30,000, questioning need for renovations “based on the fact that there is lots of discussion about this facility not being appropriate for the fire services…
“Why would we continue to put money into a building that potentially will be used for another service or completely renovated at sometime?”
A fire department representative noted the proposed renovation is “just to get us a shower – one shower in the building, because we have no showers in there … and to expand the bunker gear room across to the existing radio room to make it bigger so we can actually fit everybody in one room.
“So it’s just those minor things which will buy us a few more years to provide that to abide by our cancer prevention plan.”
Burke also questioned the need to purchase a cemetery lawn mower, suggesting the 10-year-old mower could last a few more years or the tractor for sidewalks and grass cutting could be used in the cemetery.
Transportation services manager Dale Clark explained the two machines are very different, and the tractor would not have the same ability to mow around headstones in the cemetery.
*An earlier version of this article included several incorrect figures for the budget.
