ERIN – Town finance director Wendy Parr was proud to bring good news to council at its June 8 meeting.
Parr reported another fourth quarter operating budget surplus — “marking an unprecedented sixth consecutive year” — totalling $545,405.
“Contributing factors include the increase in building permits, planning zoning revenue and proactive collection of taxes,” Parr wrote in a report to council summarizing the fourth quarter results, ending Dec. 2022.
Parr, who is also the town’s treasurer, told council the tax rate stabilization reserve, used to reduce tax rate increases, would receive the most sizeable deposit of the surplus dollars.
“A buffer is created that could mitigate potential tax rate increases, thereby alleviating any burden on taxpayers,” Parr commented.
Though stabilization reserve dollars are used to reduce increases, rarely are they used to completely alleviate the burden placed on taxpayers to pay for municipal operations and capital projects.
Last December, when council passed the 2023 budget, $160,000 was withdrawn from the stabilization reserve to reduce the increase requested to pay for department resources and capital requests to 2.5% from the 4.5% proposed.
For 2022, council approved the use of $196,500 to reduce a rate increase.
The 2022 year-end balance of the town’s stabilization reserve was $1.16 million, according to a town balance sheet.
The surplus from last year will be spread among economic development, the town’s heritage fund and the stabilization reserve as follows:
• $41,000 to the economic development reserve bringing the closing balance to $82,644;
• $75,000 to the heritage fund bringing the closing balance to $89,373; and
• $429,405 to the tax rate stabilization reserve bringing the closing balance to $1.59 million.
Councillor Bridget Ryan said “we need to spend” on economic development at a time when the town is growing.
She also noted an absent economic development department staff position, suggesting the town should be looking to hire outside consultants to address communications and support for small businesses.
Parr referenced the $41,000 allocation to the economic development reserve, and defended her colleagues, saying they had made good use of grant applications.
The town received a provincial Central Counties Tourism grant, with funds going toward the Erin Winterfest and Christmas Market, publishing Erin Life magazine, and to fund a 10-part webinar geared to creative professionals and entrepreneurs.
A number of capital projects were not completed last year, because of “COVID-19 and supply chain shortages,” according to Parr’s report.
Remaining balances for those projects will be carried forward; $2.5 million was spent on capital works last year, according to the report.
