ELORA – Centre Wellington council has approved the township’s 2019 budget with a 4.05 per cent tax rate increase for the average homeowner.
Passed in a 4-3 vote on Feb. 27, the overall budget is $61,205,516, which includes an operating budget of $39,270,566 and a capital budget of $21,934,950.
The total tax levy (amount to be raised by taxes) is $14,666,055, up by 7.7% from the 2018 tax levy of $13,619,600.
On the average residential property assessed at $372,746 township taxes will rise by $42 to $1,154. In 2018 the average residential property owner paid $1,115 in township taxes.
County taxes are up 2.8% this year, resulting in a blended tax increase (also including the province’s education portion) of 2.65%. Therefore, the average property owner will pay $4,027 in total taxes.
Councillors Kirk McElwain, Bob Foster and Stephen Kitras voted against the 2019 budget.
Prior to the vote, budget discussions had taken place on Feb. 6, 7 and 13 during Committee of the Whole meetings. On Feb. 13 a recorded Committee of the Whole vote also produced the same 4-3 result.
“Just a point of clarification, we did have a lot of discussion on [the budget] so we will take some brief comments,” Mayor Kelly Linton cautioned ahead of the vote.
McElwain said he is concerned about the 5.2% development charge increase and council’s overall 10% spending increase this year.
The non-residential building consumer index (NRBCPI) this year showed an increase of approximately 5.2% (it was 3.1% in 2017). The draft budget stated the NRBCPI “is used by municipalities across the province in determining capital inflation for development charge indexing purposes.”
Township capital projects, according to the budget, are therefore 5.2% more expensive than last year.
However, McElwain said he found 5.2% “hard to justify,” adding “this is for non-residential building cost estimates and we don’t build non-residential buildings so I don’t understand: why are we using that as a base to begin with?”
He also questioned why there is a total increase in spending of 10% instead of following the asset management plan, which he said outlined 4.9% a year.
“I think we are spending too much money, I guess is the bottom line,” McElwain said.
Foster, whose professional background is in accounting, said the 2% dedicated capital levy increase, which funds the township’s budget for bridges and other structures, is misleading.
“What I am opposed to is calling it a 2% levy when in fact it is not,” Foster said.
“When we look at this number collectively we are asking Centre Wellington taxpayers to contribute [$1.2 million] on a total taxation of $13.2 million. That is 9%; that is not 2%. That is where I have difficulty with the levy.”
Councillor Stephen Kitras told council that while he appreciates the many hours that went into developing the budget, he took issue with the township’s approach to budgeting.
He referred to the 2019 budget as a “wish list,” taking particular aim at the township’s salary and benefits costs, which make up the largest portion of the 2019 operating budget at 43%.
“When questions about some of the salary, the staffing [arose], there was no justification given – time studies or business cases for any of those – none. It was a wish list,” Kitras added.
He reiterated to council he thinks the tax increase could be and should be zero.
“We could easily have a balanced budget. Mapleton did. They have increased revenues too and they were able to do it,” Kitras said.
He ended his comments by encouraging Centre Wellington residents to ask for “more oversight and accountability” in the budget process from councillors.
None of the council members who voted in favour of the budget provided comments.
However, Linton called the process successful in a press release announcing the approval of the budget.
“Our CAO and senior staff are tasked to bring forward budget considerations based on the service levels expected from our residents,” said Linton.
“Then, as elected officials, council debated, asked tough questions and collaborated with staff. This resulted in a fair and successful budget process that supports strategic investments in infrastructure, encourages economic growth and maintains the programs and services that our residents expect and deserve.”
The list of capital projects in 2019 includes:
– nine bridges reconstructed or improved at a cost of about $2.17 million;
– improvements to the Bissell Park multi-use pad ($475,000, including $350,000 from the MacDonald Trust and $125,000 from in-kind donations); and
– various road, water, sanitary and storm requirements for Phase 3 of the Granwood Gate subdivision in southwest Elora ($3,635,000 total, including funds from OLG slots, water and sewer reserves, and the developer).
