ELORA – Taxpayers in Centre Wellington are facing a 7.38 per cent increase in the township portion of their property tax bill after council, as committee of the whole, spent two days whittling the budget down from the proposed 8.54% increase.
During budget meetings on Dec. 7 and 8, CAO Dan Wilson told council the township is up against some serious challenges this year:
- reduced government funding;
- revenue generation;
- funding legislated requirements;
- maintaining existing services;
- funding commitments; and
- the economic environment, meaning inflation.
Last year the tax increase was 3.53% but that is not sustainable, Wilson said.
“[That increase] didn’t really cut it,” he said. “We have some catch up to do from 2023.”
In a pre-budget meeting in the summer, council directed staff to strive for a 6% increase.
Wilson and the finance team pulled out several items that, if adopted, could bring the increase to 5.81%.
But that list included items like reducing gravel road maintenance, reducing the investment in the township’s asset management program, and removing rental of temporary washrooms in Elora.
Staff tallied up $332,140 in potential tax reductions.
“These are all shown as operating increases. There are implications to every one of them,” Wilson said.
The 10-year capital forecast clearly shows that if contributions are not made to the asset management program each year – i.e. reserve funds – the money won’t be there for repairs or replacement of the township’s buildings, vehicles, roads and other assets.
However, staff thought it was possible to reduce that investment by $50,000 in 2024 and still get by.
The budget includes a separate levy of 2% for bridges and culverts. With 111 bridges and culverts in the township, it’s vitally important to maintain the levy, council heard.
Assessment growth is pegged at 2.93%. That’s an extra $538,000 to the township’s coffers.
Council decided to increase the fees and charges bylaw by 6%. This includes the cost of parks and recreation programs and the cost of renting ice.
Council also decided not to rent temporary washrooms in Elora for a savings of $14,000.
The budget includes 14 new staff positions, some of which should reduce the need to hire consultants, said chief human resources officer Rashid Hasan.
The Fergus BIA presented an operating budget of $71,676 and the Elora BIA’s budget was $139,517.
The Elora BIA was seeking a $50,000 loan from the township to update its Christmas lights in preparation for next year, when Mill Street East will be open for vehicles and foot traffic.
Council approved these budgets.
Water rates will increase by 1.2% and wastewater rates by 3.3%.
Council decided to fund the termite management program by taking 3% or $88,500 from the economic development reserve, which led to a 0.47% reduction to total taxation.
Council decided to delay renovating the tourism office in Elora and also design work for new public washrooms in Elora.
It did agree to add heat in the seating area of Pad B at the Centre Wellington Community Sportsplex in Fergus and to purchase temporary basketball nets at the sportsplex as well.
Council managed to whittle $220,567 from the budget, amounting to a 1.16% reduction to the tax increase.
But that still brings the increase to 7.38%.
On a home with an average assessment of $381,000, the municipal portion of the tax bill adds $98.70 for a total of $1,320 next year.
When added to the bridges and culvert levy ($116), as well as the county portion ($2,670) and the education portion ($590), Centre Wellington taxpayers will pay about $4,696 a year in property taxes.
While council agreed to all this during its Dec. 7 and 8 meetings, the budget returns to council on Dec. 18, when it is expected to be passed.
