ELORA – Centre Wellington has already started to consider its 2020 municipal budget.
At a committee of the whole meeting in June, council gave direction to staff on eight different aspects to consider when putting together the draft 2020 budget.
All council members but Bob Foster were in attendance.
“You can tell a lot of thought and work went into this document,” Mayor Kelly Linton said.
“It’s work that staff does every year for the budget but we’ve kind of opened up the assumption setting process to all of council so we don’t go too much further down the road without council discussion on some of these assumptions.”
Section 1
The first section council considered was the resolution to maintain a tax rate equal to, or less than, the township index of 2.7 per cent, before adding the dedicated capital levy, for the 2020 budget.
All council and staff were clear that passing the resolution was not approving a 2.7% tax rate increase. The increase will still go through the normal budget process.
Councillors Stephen Kitras and Kirk McElwain both said they thought the rate was too high based on rates of inflation across Canada and averages over a number of years.
Councillor Steven VanLeeuwen said it is necessary to have the option for a higher tax rate increase to address capital projects.
“When we talk about the number, people can’t afford it,” he said. “When we want to fix the roads people gotta have roads fixed.
“At what point do we take a realistic look at this?”
Managing director of corporate services and municipal treasurer Dan Wilson explained that transfers to capital reserves contributed to the tax rate increase.
“We’re very much behind on … how much funding … we need to move towards sustainability as outlined in our asset management plan,” he said.
“So we’re trying to increase our contribution to the capital reserve as much as we can, obviously within affordability of our residents, but our asset management plan indicates that we’re behind in our funding and we need to catch up.”
Councillor Ian MacRae said he thought 2.7% was a good starting point and councillor Neil Dunsmore said he thought it was a good target.
The section passed with Kitras and McElwain opposed and Linton, MacRae, Dunsmore and VanLeeuwen in favour.
Section 2
Staff also recommended the assumption that assessment growth is equal to 2.5%. The rate will be updated when the actual numbers are provided in November.
Wilson explained that assessment growth is based on Municipal Property Assessment Corporation (MPAC) growth. However, it does not factor in changes to assessment values of current homes.
“The phased in assessment increases is really a redistribution of taxes amongst property owners,” Wilson explained.
“So if you’re phasing in an increase in assessment some properties go up, some go down, but the net taxation dollars to the township stays the same.
“So that does not give the township additional tax dollars, but yes some taxpayers pay more, some pay less.”
VanLeeuwen was in support of the 2.5% assessment growth.
“I do appreciate that we used the lower average because this is an income item that goes towards our budget and generally when you (do a) business plan you always get a little bit conservative on your income and add a little bit of padding assuming (more) expense than you presume just to make sure that it’s going to flow properly,” he said.
The recommendation passed as presented with only Kitras in opposition.
Section 3
Staff also suggested increasing most fees and charges for 2020 by 2.7%.
Kitras said he would like a lower increase, however VanLeeuwen argued the fees need to be set at a fair price so the services do not become a tax burden.
“I think that this seems fair as an average to go across the board,” he said.
Dunsmore, on the other hand, wanted to make sure that vulnerable families who don’t want to use alternative funding options like sponsorships, are able to access the facilities and programs.
“They’re not using the facilities to the maximum,” he said. “I know that we have a mental health problem in this community and I’d like as many people to have as much opportunity to use those facilities as possible.
“So from that standpoint I’d like to see this kept down to at least the rate of inflation.”
Linton suggested a 1.8% increase.
Council passed the recommendation for a 1.8% increase in fees and services for 2020.
Section 4
Council passed the staff recommendation to use an estimated Ontario Municipal Partnership Fund (OMPF) allocation of $255,680 for 2020.
The value will be updated when the allocations are released by the province.
Section 5
Council chose to continue the dedicated capital levy with a compounding 2% increase on the base taxation levy for 2020.
Kitras asked that staff use a more realistic indicator than the average home value to explain the levy.
CAO Andy Goldie said staff would show the levy based on $100,000 of assessment.
Section 6
Staff will include approximately $1.5 million for growth-related capital projects to be funded by development charges within each year of the draft ten-year capital forecast.
Section 7
Staff is allocating the following funding in the 2020 draft budget:
– $5.37 million in combined general capital reserve, federal gas tax and OLG funds;
– An increase in funding of $158,000 to the equipment and vehicle replacement reserves; and
– allocations to the WSIB reserve, insurance claims reserve, contingency reserve and legal matters reserve.
Section 8
Council asked staff to complete a report looking at assigning OLG funds in a different way than in the past.
Council would like to see the impact of allocating OLG funding in the following proportions:
– 60% roads;
– 20% capital projects other than roads;
– 15% economic development; and
– 5% arts, culture and heritage.
Staff cautioned council that changing the allocation from the recommendation (88% OLG capital reserve, 7.5% economic development and 4.5% arts, culture and heritage) could mean projects are cancelled or postponed that have been promised to the community.
Staff will bring a report back to council showing the impacts of the proposed changes.
Future meetings
The next budget discussion is scheduled for Sept. 9, which will include budget delegations.
The remainder of the budget process includes:
– Sept. 13: budget survey released to public;
– Oct. 2: budget open house;
– Oct. 11: budget survey closes;
– Nov. 22: draft 2020 budget book available;
– Dec. 3 and 5: budget deliberations;
– Dec. 9: budget deliberations, if needed; and
– Dec. 16: budget approval.
