It’s not just capital costs which are going to increase taxes over the next five years.
Operating costs in Wellington County are expected to jump from $167 million in 2011 to $185 million by 2015.
In a presentation to Wellington County councillors on Jan. 7, treasurer Craig Dyer offered a glimpse into the costs which will affect the 2011 budget.
Though council has the final decision in what stays or is excluded from this year’s budget.
He pointed out that a 1% tax increase or decrease translates to roughly $754,000.
Dyer also noted that assessment growth in 2010 was 1.65%, “which was a little bit higher than what we had anticipated.”
He noted that the county is also moving into the last year of a four year reassessment cycle so he anticipated more tax phase ins as well.
Roads
Dyer said there is a $4.6 million winter control budget for 2011.
He added that there is also now a winter control reserve, and any savings from the 2010 winter control budget will go into that reserve “to be used in years when we are not so fortunate with the weather.”
Solid waste
Dyer said there’s be a few adjustments to the revenue side for solid waster management.
Tipping fees ended up being less than what was budgeted in 2010.
He said the funding for Blue Box program also dropped to $508,400.
In addition, there is a proposal for two part-time staff for additional coverage at the Belwood and Elora sites.
Planning
In planning, Dyer said the main change to the operating costs is an $50,000 increase to the rural water quality program – which is administered by the Grand River Conservation Authority.
Police
In policing, Wellington County is heading into the third year of a give year contract with the Ontario Provincial Police.
“We are seeing some fairly significant increases in the OPP contract in 2011.”
Dyer said the county is anticipating approval shortly between the Ontario Provincial Police Association and the provincial government which will also see some increases on the salary and benefits side.
The estimated 2011 budgeted OPP contract amount of $15.7 million which is a 9% increase over 2010.
Library
Dyer said there are additional operating hours at Puslinch, Mount Forest, Aboyne, and Drayton branches which translate into addition staffing costs.
Social Services
Dyer said there are a number of factors in play with the social services costs within Wellington.
Those factors, he said, not only impact 2011 but for the forecast until 2015.
Major factors include provincial uploading and the results of the arbitration between Wellington and Guelph.
Social Services Upload
In 1998, the province downloaded a number of costs related to social services onto municipalities.
Now some of those costs are gradually being uploaded back to the provincial level.
That results in a savings for Wellington to deal with the operating costs.
Social Services Arbitration
Dyer said Wellington County went through a lengthy process in 2009 preparing for an arbitration hearing.
The purpose was to determine the apportionment of costs of various programs in the county and Guelph.
Dyer said the arbitrator’s ruling came into effect on Jan. 1, 2010.
“Basically it specified that Ontario Works would be shared based on the residence of the recipient.”
For child care it was based on the residence of recipient for fee subsidy and special needs, location of centre for wage subsidy.
For housing, the costs were based on the where the tenant was living prior to getting social housing.
For ambulance service the cost was based on the location of the call, Dyer said.
For Wellington, Dyer said the savings of $1.5 million each year for social housing and $175,000 a year for land ambulance.
Those adjustments, he said, had not been incorporated into the 2010 budget.
This year’s budget, he said, reflects the full arbitration decision.
In addition, county council approved directing $1.5 million per year into reserves for social services, and $175,000 for land ambulance.
Dyer also noted that the arbitration ruling will be in place for at least three years.
“We don’t know what will happen after that.”
He then said part of the reason for putting those funds in reserves, “is to prepare for another day when perhaps we don’t have as favourable a cost sharing methodology.”
The other reason, he said, is that there are significant pressures particularly in regard to affordable housing.
“We used all of the money that was in our social housing development reserve to help fund the project in Fergus and this could provide a source of funds for anything relating to social services.”
Similarly, Dyer said Wellington never had a reserve for ambulance service.
“Having that money set aside is a very prudent thing.”
Affordable Housing
Dyer has projected surplus of $31,300 for the first full year of operations at Fergusson Place.
Those funds will be transferred to the County’s Housing Development Reserve Fund.
He added that several years ago, the county began an annual contribution to the Housing Development Reserve Fund. That fund is now sitting at $500,000, Dyer said.
Public Health
Dyer explained the county is a partner in the Wellington-Dufferin-Guelph public health unit.
Though the main offices are in Aboyne, Dyer said both the offices in Orangeville and Guelph need new facilities.
In the 2011 budget, health unit has included an initial levy of $600,000 for these buildings.
The county share would be roughly $195,000.
Dyer said that would bring the 2011 county contribution to $1.9 million (18% increase) including $195,000 facility contribution, with additional facility contributions required in 2012 and 2013.
“It is significant and it is important for council to know the health unit has based its numbers on a projected 3% increase in provincial funding in 2011.
He said in 2010, the health unit also assumed a 3% increase, but got less.
That resulted in additional funds required from the municipal levy.
“Fortunately, we had already assumed the province would give them less, so we already had that money in our budget. So what we are proposing is to do exactly the same thing in 2011.”
He said if the health unit is unsuccessful in getting at least some provincial funds for its facilities, the county can expect two more years of significant increases.
County councillor John Green said it does not appear very realistic at this point that there will be provincial funding for new facilities.
However, he said, the health unit is budgeting for a worst case scenario as far as capital costs are concerned.
Green anticipated a lot of discussion over the next two to three years with its partners.
Councillor Lynda White asked if Dufferin and the city of Guelph are as agreeable to budget these costs.
Green suspected there is “some stick handling going on … and we’ll be able to answer the question probably in March. I would however say that Dufferin is a willing partner in this.”
Other revenues
Dyer said the federal gas tax revenues amount to roughly $2.6 million whereas investment earning account for another $2.0 million
He said the county also received good News in regard to the OMPF [Ontario Municipal Partnership Fund] which increased to $4.33 million.
In addition, through an agreement with Centre Wellington received a portion of the Grand River Raceway revenue increased to $400,000 for 2011.
