Town council has approved a 7% increase in the 2009 tax levy, though the average homeowner should see a tax increase of 3.75%.
Last week, Erin council passed its 2009 budget with total expenditures of just over $9.8-million, down over 10% from last year’s budget of about $10.94-million.
The 2009 budget includes $2,359,623 in total capital expenditures, down about $1.5-million or 39% over last year. The total amount to be raised through town taxes this year is $3,955,186 – which is up $257,348 or about 7% over 2008.
However, director of finance Sharon Marshall said due to assessment growth in the town and shifts between assessment classes, the “anticipated impact” will be an increase of about 3.75% on the town portion of residential tax bills.
Mayor Rod Finnie said he is never happy with a budget increase – and council was divided on the level of increase during several meetings – but the majority of council is satisfied with the final outcome.
“Every budget is a balancing act,” Finnie said in an interview. “But I think we have a reasonable budget.”
Wellington County has yet to approve tax policies for 2009, including tax ratios – it is expected to do so at its May 28 meeting – so the town has to wait to pass its own tax rate bylaw.
But if Marshall’s estimated 3.75% increase is realized, the resident with an average home assessed at $300,000 will pay around $870 in town taxes. Last year the owner of a home assessed at that value would have paid $837 in town taxes.
The town usually receives about 20% of the total tax bill paid by residents, with the majority going to the county and the school boards.
Finnie said with such a small portion, a town spending increase of $39,000 means a 1% tax increase for residents, which makes it difficult to come up with funds to complete capital projects. He is hoping Erin’s recent federal-provincial funding applications are successful to help cover costs.
The 2009 budget includes about $1.3-million in capital projects, such as:
– $25,000 for design and engineering cost for a new firehall in Hillsburgh;
– $50,000 for a compressor to fill firefighters’ SCBA equipment needs;
– $77,567 for a new ice resurfacer (after a trade-in);
– $80,775 for the new pavilion at 109 Main Street;
– $86,000 for two generators (partially covered by a Joint Emergency Preparedness Partnership grant);
– $90,000 for the design and tender process for a new booster water pump station, in Hillsburgh;
– $92,500 for a new snow removal tractor;
– $124,000 for other water projects, such as new test wells at town wells 7 and 8 and reconfiguring the road at the Erin water tower;
– $125,000 for a new tandem truck (the remaining $100,000 will be covered in the 2010 budget);
– $200,000 to install the new Mill Street bridge;
– $305,340 for the purchase of 41 acres of land in Hillsburgh, to be used for recreation facilities; and
– $450,000 for the reconstruction of a portion of Sideroad 5.
Other major expenditures include:
– $50,000 for a development charges study;
– $116,709 for the GRCA and CVC levies; and
– $175,000 for the servicing and settlement master plan.
Finnie noted the town hopes to get a “substantial amount” of gravel through an agreement with Dufferin Aggregates for gravel located within the right of way of the 10th Line.
As well, the town will attempt to extract gravel from an area along 27th Sideroad known as “Moonshine Mountain,” which Finnie hopes will also produce gravel at very little cost.
“We’re trying to be innovative to address our issues,” he said. But he added there are still huge costs council has to address and things are certainly not getting any cheaper.
Erin council unanimously passed the budget last week, but at previous budget meetings, decisions were definitely less one-sided.
For example, at its last budget meeting in April, council had the expected residential impact down to about 3.22% but then voted to add another $20,000 to reserves, bringing the increase to 3.75%.
Councillors Ken Chapman and Josie Wintersinger opposed that proposal.
