Jeff Green | Mar 10, 2011
26% tax increase in South Frontenac draft budget
South Frontenac Chief Administrative Officer Wayne Orr tried to ease members of council into his preliminary budget presentation at a meeting of the Committee of the Whole on Tuesday night, March 8.
“Last year the tax increase was minimal,” he said. “I’ll call that one an election year budget. Council was well aware of the significant draws on reserve funds that were used to keep the tax increase to 2% in 2010. This year it will not be as easy.”
Orr said that staff were given instructions by council to prepare three budgetary options: a bare bones budget, a budget to reflect the needs of the township, and an ideal budget that would set the township up for the future.
“We never got to the last two options,” he said, “because the base budget still requires a significant increase.”
Projected revenues from grants and other sources are down by $4.1 million this year, Orr said, and while projected expenditures are down as well, by over $1.5 million, that still leaves a shortfall of $2.6 million, which translates into a 26% increase in the amount of money that needs to be raised through taxes.
“The reality is that we have been funding ourselves with money that we’ve saved for a rainy day. We could say it is time to face the music,” he said.
In terms of options to reduce the increase, Orr noted that council could opt to reduce service levels; they could decide to increase the garbage charge from $100 to $150; or they could consider deferring road projects.
The roads budget accounts for over $5 million, about half the overall budget.
Wayne Orr reminded council that the roads rehabilitation plan, which was approved by council last year, calls for that amount of spending. “In order to narrow the gap between where the roads are now and where they should be. If we cut into that, we will only widen that gap,” he said.
Council will not receive the detailed budget until next week, and will go over it on March 22, but members of council did have a few things to say in light of the proposed 26% tax increase.
“Maybe this is the time we need to consider a user-pay garbage system,” said Councilor Ron Vandewal, “but I really would like to see all of this on paper. I’ve got to see all the numbers before I can decide for myself if this is really the way to go.”
“I agree with Ron,” said Councilor Larry York. “We need to see some figures on paper. We do have a strong pubic works budget. I think we might look a little more long term at some of that work.”
“I have some concerns about comparing budget numbers to 2010 because it was a funny year with all that federal grant money,” said Councilor Del Stowe. “I’d like to compare costs to the 2009 budget.”
Wayne Orr said he fully expects council to look for savings when the budget is set before them in detail.
“There was no expectation from staff that you were gong to say ‘job well done’, let’s go with this,” Wayne Orr said.
“Any further comments?” asked Mayor Davison after a relatively short, low-key discussion took place.
“I think everybody is still in shock. I know I am,” he concluded.
User pay for fire department emergency service
South Frontenac Fire Chief Rick Cheseborough presented an amended version of a bylaw that enables the township to bill insurance companies when the fire department is called out to motor vehicle accidents.
The proposed amendment would allow the township to reverse those charges in cases where no insurance claim was filed by the driver in an accident as long as they receive a letter of confirmation from the insurance company.
The amendment is a response to a complaint by a member of the public who received a bill of $1,600 from the township one year after his car slid into a ditch and the fire department was called in to help out. The man did not submit an insurance claim for the incident and has been billed for the cost of equipment use and the hourly pay for firefighters.
“I’m troubled with the whole concept of this,” said Deputy Mayor Mark Tinlin. “If I slip off the road and then someone else calls in the accident, I can’t ration how much equipment comes out, how much personnel comes out. But yet I pay, or my insurance companies pays, even though I already pay for the fire department through my taxes. I’m not supportive of this on any level. I’ll oppose this when it comes to council for a vote,” said Deputy Mayor Mark Tinlin.
Fire Chief Rick Cheseborough reported that other municipalities charge similar fees for motor vehicle accidents.
“This is not something we came up with on our own. Kingston does it; so does the province,” he said.
$114,000 was billed to insurance companies by South Frontenac for fire services at motor vehicle accidents in 2010, of which $60,000 has been collected thus far.
Also at South Frontenac Committee of the Whole
Council received a report on the cost of bringing township water to a proposed office development at the Silverbrook Garden Centre Property on Rutledge Road. A zoning change request has been waiting for third reading pending council receiving the information. The cost of extending Sydenham water another 450 metres to the site would be $400,000.
“That’s obviously more than we can charge the applicant,” said Councilor Ron Vandewal, “but we have to decide as a council if we are gong to expand Sydenham water or leave it the way it is. If the municipality wants the water system to grow it has to shove it out there and make it happen. It takes a commitment. I know it’s a big step but if you never take the step you will never get the growth.”
“I don’t think we should have this debate over this single proposal,” said Councilor Allan McPhail, “but we should look at this.”
In the end the zoning bylaw will go forward to the next council meeting for approval with no requirement that the proposed Silverbrook development be hooked up to Sydenham water.
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