Even with combined capital and operating budgets totalling about $48 million, the total impact to the local portion of residents’ tax bill will be about $37 (based on an average assessment of $340,000).
This represents an overall 1.89% increase, combined with the dedicated 2% capital levy for roads and bridge projects.
The first day of operating budget talks on Jan. 24 marked the final stretch of budget discussions for the township.
Mayor Kelly Linton expressed his appreciation for the work done by staff and the amount of time required to pull together detailed information.
Linton said the budget provides “a nice low rate increase number.” He added starting with the low number shows accountability and that the township wants to be good stewards of tax dollars.
“We’re not treating the budget process as a game between staff and council. We are all on the same team, working in the best interests of Centre Wellington taxpayers,” Linton said.
CAO Andy Goldie said budget discussions began at the staff level several months ago, looking at items that would have a key impact on 2017 capital and operating budgets.
On Nov. 28, council approved the 2017 capital budget and the two-year capital budget forecast.
As part of the strategic plan, Goldie said a key focus was to prepare a three-year operating forecast for the 2017 budget process.
“Unfortunately, as we have advised council previously, due to other key priorities in the strategic plan, staff were unable to complete that work for this year’s budget process,” Goldie said.
He added staff plan to prepare one for the 2018 budget.
“Staff worked diligently to prepare council a very sensible draft 2017 operating budget.”
In his report, Centre Wellington deputy treasurer Mark Bradey explained the 2017 draft tax supported operating budget is $23,907,021.
“This includes assessment growth of $266,344, a 1.89% increase in the base tax levy of $218,837 and a 2% dedicated capital levy totaling $251,050. As a result, the tax increase proposed for 2017 is a combined 3.89% ($37.09) on the township’s portion of the total tax bill.”
Bradey further stated the 2017 draft user-pay operating budget is $10,422,801 – an increase of $721,665 (7.4%) over the 2016 user-pay operating budget of $9,701,136.
Bradey stressed this increase will not result in a change to the 2017 water and sewer rates, as they were determined by the rate study approved by council in November 2015.
He noted that keeping the levy increase to 1.89% does not leave a lot of room, adding, “We go through the accounts one by one. So it is a fairly tedious process.”
2017 budget process
Bradey noted that beginning with the 2013 budget process, the capital and operating budget discussions were separated.
This allowed the township to take advantage of favourable tender pricing that is typically offered earlier in the year, before competition from other municipalities begins.
Ontario Municipal Partnership Fund (OMPF)
The Township’s OMPF funding will be reduced by a further 15% ($78,000) in 2017 to $442,200.
Bradey noted that OMPF funding was $1.5 million in 2009, which means the funding has dropped by 71.3% since 2009.
Funding legislated wages and benefits
Consistent with other municipalities, employee remuneration accounts for close to half (44%) of the tax supported operating budget. Significant changes related to wages and benefits in the 2017 operating budget are:
– wages increased 1.55% per the Employee Memorandum of Agreement with the Township’s Staff Association;
– EI maximums have decreased 12.4%; and
– 8.3% increase in group benefit premium costs (approximately $56,700).
The tax supported operating budget proposes the following staffing changes:
– adding a full-time financial analyst – with an estimated annual wages and benefit cost of $78,100 – to replace the former tax administrator position that was not replaced within financial services following a retirement in May 2015; and
– converting the theatre coordinator position into a full-time, salaried position (for over three years, theatre administration has been fulfilled by the same individual under a contract).
Bradey added the user pay operating budget proposes the following staffing changes:
– the inclusion of a supervisor for special projects and customer service position with an annual estimated cost of $93,500 (this position, one of the recommendations of an Environmental Services organizational review in May, is responsible for planning, organizing and managing tasks related to the township’s water and wastewater infrastructure); and
– the inclusion of a three-year contract risk management inspector. Costs associated with this position will be shared between several lower tier municipalities in the county and was approved by council in December.
Hydro and water
Hydro and water expenditures have increased by approximately $47,500 ($40,000 at the Centre Wellington Community Sportsplex in Fergus).
Gravel resurfacing and shoulder maintenance
Gravel resurfacing and shoulder maintenance expenditures are to increase by a combined $55,000 to remediate washouts and spring thaw impacts and to improve the overall condition of roads.
Software support
Software support costs, which include annual licensing and maintenance costs for various programs utilized throughout the township, are expected to increase by approximately $64,700 in 2017. The majority of this increase is due to the implementation of new software programs at the township, including: CityView (planning and development application management tool), ActiveNet (community services facility booking management software), web maintenance and development software, and GIS server maintenance software.
Increased funding to celebrate Canada’s 150th
Bradey said $15,000 has been added to the 2017 budget to expand celebrations throughout the year in recognition of Canada’s 150th anniversary.
Alternative sources of revenue generation
Bradey explained, “We are always looking for ways to generate revenue without increasing taxes.” He said this could be through development charges or user fees.
Bradey added the township is working with a consultant to secure an estimated $50,000 per year in naming rights for various community services facilities.
Bradey stated the tax-supported capital budget is $12.5 million, while the user pay capital budget is $1.5 million, which would bring the overall township budget to $48 million.
Local impact
The 2017 proposed tax increase is 1.9% ($18.27) plus an increase to the dedicated capital levy equal to 2% ($18.82) for a total tax increase of 3.9% ($37).
Centre Wellington expects to finalize the 2017 budget at its Feb. 21 council meeting.
