It has been years since Centre Wellington Township council unanimously approved a budget – and Monday night was no exception.
Mayor Joanne Ross-Zuj broke a 3-3 tie this time, to pass the 2009 budget.
On an average assessed home of $232,500, the total tax hike will be $78.71 – an increase of 2.67% in total. Ross-Zuj broke that increase down to:
– $28.23 for township use;
– $39.70 for the county; and
– $10.38 for the school board.
The total tax on the average assessed home will be $2,936, with:
– $706 going to the township;
– $1,654 to the county; and
– $575 to the school board.
“This is, in essence, a budget of essentials and not excesses,” budget committee chairman Fred Morris told councillors. “This is not a budget designed to represent a glorified wish list carelessly proposed by staff and thoughtlessly adopted by council. This budget allows staff and council to meet the needs of residents and address the new legislation handed down by the provincial government.”
Morris said recent provincial changes have forced the township to “bring on additional staff to meet these guidelines and comply with government regulations.”
That includes hiring more certified water and sewer operators and a training officer for the fire department, as well as some changes to recreation personnel duties.
“Risking public safety is not an option for the Township of Centre Wellington,” Morris said.
He pointed out the township faces “a massive infrastructure deficit in excess of $60-million.” It has 473km of roads and more than 100 bridges and culverts, “many of which require replacement or repair, and two wastewater treatment facilities.
“We also have numerous wells and sewers that will require ongoing servicing and upgrades in the very near future.” Morris concluded, “We are moving in the right direction and will, with your help, continue to do so.”
Councillor Walt Visser, however, disagreed. He attacked the ratio of spending for capital projects versus operating costs.
“Since amalgamation 10 years ago, we have tried to maintain that $1-million out of the tax-raised budget went to capital; the rest went to operating budget. We have never quite succeeded, but we never let this balance drop below $800,000. This year we are below $350,000.”
Visser noted the township tax base increases every year with new housing and industry, as well as additional revenues such as the gas tax from the federal government.
He said of the ratio of capital and operating, “If we lose this balance this year, next year will be worse. The way this budget tries to cover the growth of our operating budget is by reaching into our slots revenue.”
The township has set aside $1.5-million of slots cash this year in anticipation of leveraging it with several grant programs with the federal and provincial governments.
Visser said that money “should be reserved for emergencies and additional capital works – not for operating funds.”
He also attacked hiring more staff.
“We are hiring more people because we are a growing municipality; however this budget proves our operating costs are growing faster than our municipality and our tax base. We simply cannot afford that”
Visser cited what he believes was a mistake a few years ago.
“We built the Fergus pool at an excessive cost and now we pay $500,000 a year in mortgage payments in addition to the $500,000 in operating costs. OK, the facility is there and it is well used, so we have to suck it up – however we don’t have to spend millions on Bissell Park.”
He added, “We are in no position to take on five-year leases for municipal staff at $80,000 per year while we have surplus buildings.
“We cannot fund our tax based budget with funds from the slots. If we start, it will increase yearly and it will never stop.
Visser added that perhaps someday the slots funding will stop.
He added, “We have unemployed people, low-income people, fixed income people, and retired people who do not get a 3% wage increase. They are struggling to stay alive and maintain what they have.
“The impact of this growing operating cost is too devastating for all these people. We have to rethink our spending and concentrate on the principal things that are expected of us. We have to stop hiring and maybe cut back some … We have to reduce some services because 3.9% is too much.”
Councillor Bob Foster also told Morris he disagrees with the budget plan, and said the township is “moving in the wrong direction.”
He noted the Conference Board of Canada earlier that day had predicted unemployment of 10% and, “Here we go again with another tax increase. I maintain this is the year for a freeze.”
Councillor Kirk McElwain said he, too, “would love to see a zero per cent tax increase, but it is not realistic.
Ross-Zuj told said council was fully aware of the economic circumstances when it began budget deliberations.
She said in an interview the township took three major financial hits in 2008 and that forced an increase. Those were:
– $500,000 more for winter maintenance than expected;
– lower interest rates, which cut township investment revenue; and
– a decrease in building permit revenue.
But, she added, there are some good things to look forward to this year, including an increase in the federal gas tax to $788,000 from $300,000, and grants that the township can use for infrastructure.
As for the imbalance that Visser cited, she said, “It’s not anything that’s permanent and we can pull it back.”
She added that the slots cash will continue to be used only for infrastructure work.
When the vote was called, councillors Shawn Watters, McElwain, and Morris were in favour and councillors Visser, Foster, and Ron Hallman were opposed. Ross-Zuj’s vote was the difference.
