MINTO – A 1.5 per cent increase in the local tax levy is currently projected in the town’s 2021 draft budget.
However, treasurer Gordon Duff cautioned at a Nov. 10 special council meeting on the operating budget, the figure could change as the process unfolds.
“This is extremely preliminary because … its November and we just had a provincial budget last week which may change few things,” Duff pointed out.
Including a $900,000 contribution to capital reserves, the projected 2021 levy is $5,643,888, up $82,549 or 1.49% from the budgeted 2020 levy.
The projected tax impact of the increase for town purposes, Duff explained, is just under 0.6%, or about $7.50 on an average residential home assessed at $242,000.
Based on an estimate of a three per cent increase from the County of Wellington and no increase in school taxes, the average Minto property owner would pay an additional 1.91%, or just over $27 more in taxes next year.
The combined increase works out to about $11.30 per $100,000 of residential assessment.
The draft budget projects modest increases in the tax-supported portion of most departmental budgets, ranging from a low of .007% ($1,433) in public works to 3.91% ($46,010) in administration.
However, the document indicates the building department budget is expected to be up by nearly 41%, or about $90,000, due largely to the addition of a deputy chief building official position partway through 2020.
Clerk Annilene McRobb reported the cost to compensate Minto’s seven town council members will increase by a total of $705, from $141,000 to $141,705.
The increase consists of a 0.5% cost of living increase based on the Consumer Price Index as of September.
No additions to the full-time staff compliment, currently at 45.5, are projected in 2021.
Duff said the number of part-time and casual employees utilized by the town was down in 2020, due to a reduction in programming in response to COVID-19 impacts.
In recent years Minto has applied a theme to its annual budget process. For 2021 theme is “Laying the foundation for economic recovery.”
The draft document contains several quotes to emphasize the theme.
CAO Derrick Thomson said the Robert Louis Stevenson offering, “Life is not a matter of holding good cards, but of playing a poor hand well,” is his favourite from among this year’s selection.
Other quotes selected by staff to illustrate the 2021 budget were:
- “It was the best of times, it was the worst of times” – Charles Dickens; and
- “Courage my friends; tis not too late to build a better world” – Tommy Douglas.
Duff noted this year’s budgeted process is complicated by the uncertainties of the ongoing global pandemic, which has already resulted in the largest global economic contraction in post-war history.
Canada, with a forecasted GDP drop of around 5.5%, is around the middle of the pack in terms of other industrialized countries, Duff pointed out.
“And in response our provincial and our federal governments just opened the coffers,” he stated.
“It’s like, ‘We’ve got to keep people going. We can’t afford to have a shutdown of our economy that’s any greater extent than we already have had.”
Duff added, “There’s no real end in sight. I think the main message is these deficits are going to remain with us for a long time and I think that means interest rates are going to remain low because they’ve got to finance all this stuff.
“Fortunately, we were in a good spot before (the pandemic), especially in terms of debt to GDP ratios, but we’ve certainly moved them up.”
Duff said the local economy has proved surprisingly resilient.
“When you kind of look at our economy locally, we’ve actually survived very well,” he explained.
“Our largest employer is with the auto sector, which is doing well. Agriculture is so important to our economy and our small businesses are coping.”
However, the economic development summary in the draft document points out some sectors of the local economy are struggling.
“Downtown restaurants, retail and service businesses, as well as a tourism and culture businesses and organizations … have been greatly impacted and will very likely continue to be impacted,” the summary states.
The document outlines plans to monitor input from local businesses and provide support where possible.
“We have added a budget line of close to $10,000 to deliver specific programming as needed to support our businesses,” the summary indicates.
Mayor George Bridge complimented staff on the budget presentation.
“The staff have done an amazing job of putting it together and its fairly clear and concise,” said Bridge.
“It’s amazing that we’re doing this in November.”
Typically, Minto council approves the budget for the current year in late March or early April.
However, on Oct. 6, Duff presented a schedule that would see next year’s budget approved by mid-December.
The draft capital budget will be presented during a special meeting on Nov. 24.
The budget is slated to be presented for final approval by council at its regular meeting on Dec. 15.
A public budget meeting is planned on Dec. 8 from 5 to 6:30pm.
However, due to pandemic restrictions – the Minto administration centre is currently closed to the public – the meeting will be held in a virtual format.
Clerk Annilene McRobb said information on how the public can participate will be published in the next couple of weeks.
