The average residential tax bill in Mapleton will rise by about $177 next year, based on current budget projections.
Mapleton council and township staff outnumbered members of the public 11 to six, at a public presentation of the proposed 2018 budget at a special council meeting at the PMD arena on Dec. 6.
“Continued responsible planning,” is the theme of the budget process, finance director Karmen Krueger told those present.
“You’ve been fortunate to have a council that’s been proactive and progressive in their thinking for future capital planning and we’re continuing that course with this proposed budget.”
The budget, as currently drafted, calls for local expenditures of about $11.6 million next year, compared to just over $10.8 million budgeted in 2017.
The projected 2018 tax levy of $7.36 million is up by about $697,000 or slightly more than 10 per cent from the budgeted 2017 levy of roughly $6,661,000.
Based on estimated education and county taxes, the township is projecting a blended tax rate increase to residential property owners of under 4%. The blended rate increase in 2017 was about 2.6%.
The average residential assessment in Mapleton, $335,000 in 2017, has risen to approximately $350,000 this year. Property taxes on a $350,000 home are estimated at $4,690 for 2018, an increase of $177 a year or $15 per month, Krueger explained.
By comparison, a farm property (excluding a residence) valued at $350,000 would pay approximately $1,172 in taxes, based on the 25 per cent tax rate for qualifying farmland. Krueger noted that farm tax dollars make up about 20 per cent of the local taxes raised, or approximately $1.4 million.
However, local ratepayer Liz Samis pointed out the 20% figure only includes farmable land, while many rural properties also include land that is “bush, scrub land or unworkable or non-productive.”
She said rural properties contribute a much greater share of total tax revenue.
“We feel, from a rural standpoint, with our residences (which are taxed at the normal residential rate) … we were carrying about 67 per cent of the township budget … so it’s a question of how you do the numbers,” said Samis.
Krueger acknowledged, “I’m strictly talking about those properties that are eligible for the 25 per cent tax rate.
“There’s likely all kinds of other lands that are either scrub or unusable or even have other varying proposes that are vacant that aren’t receiving that credit for whatever reason, so those would fall under the residential pool of ratepayers.”
Figures presented at the meeting indicate a commercial property valued at $350,000 would pay slightly less than 1.5 times the residential ratio, or $7,035 in local taxes, but would pay proportionally more in education taxes. Industrial properties pay 2.4 times the residential ratio. Commercial and industrial properties make up about 11% of local taxes, or about $820,000.
Krueger said the township is projecting a net revenue increase of around $65,000 from such areas as increased revenues from parks and recreation and facility rentals and an increased share of gas tax and Ontario Community Infrastructure Funding.
The township is also anticipating reductions in costs for economic development and operation of the medical centre in Drayton.
For the first time costs for street lighting will be blended with the total tax levy, rather than area rated.
“We sort of took the approach of distributing those costs a bit more fairly because everybody takes advantage of street lights, unless you never go into town, ever,” Krueger explained.
The township is estimating an increase of about 2.25 per cent (about $65,000) in total wage costs. The wage figure includes a general wage increase of 1.3 per cent based on the Consumer Price Index, combined with staff progressions through the existing salary grid. Employer costs of benefits will also increase by about $12,000.
The township is also budgeting for a $15,000 combined increase to the levies it pays to the Grand River and Maitland Valley conservation authorities.
By far the largest share of township expenditures goes towards roads and bridges, on which Mapleton projects spending about $4.9 million, or 42% of the total budget.
Parks and recreation, at just under $2 million, and administration, at just over $1 million, represent the next largest areas, aside from water and wastewater, at $1.2 million, which does not impact the tax levy as it is factored into water and wastewater user fees.
However, local resident Don Culp questioned why existing system users would pay, through user fees, for a planned $4.2-million allocation for wastewater capacity enhancement and $3 million for a water tower.
“That should be development charges to produce that … you can’t penalize us,” said Culp.
Krueger explained that while development charges will be factored into the projects, which will be debentured and completed over several years, some of the costs are associated with non-growth-related maintenance and improvements.
Culp said he feels because the enhancements are needed for growth, the entire project should be covered by development charges
“Do we actually need an expansion for the people that are existing here now?” he asked.
“Maybe not necessarily expansion,” replied Krueger. “But I think it’s also a reflection of upgrading and keeping the water delivery system safe and up to date. So while it might look like just expansion dollars, it’s also refurbishment and improvements along the way.”
Culp responded, “Our fees that we’re paying now are supposed to pay for that, plus put some away in reserves for the future.”
Krueger explained, “Some of it’s factored in, but when the water rates study was done … some assumptions were built into those rates that those new users will be paying those same rates.”
She added that in addition to development charges and user fees, some upper tier funding may become available to help with costs.
“We’re actually optimistic that we’ll be able to qualify for some grants on this one,” she stated.
Krueger indicated staff is aiming to finalize the budget bylaw and present it to council for approval in early January.
