Guelph-Eramosa councillors have bemoaned rising insurance costs and burdensome requirements from the province to help rationalize a proposed township budget increase of 4.8%.
“I’m tired of it,” councillor Doug Breen said of the manner in which the province deals with municipalities. “They’re crippling us.”
Due to various provincial mandates and rising insurance costs, Breen said the actual “cost of living” increase for municipalities is more like 10%, “but no one can swallow that.”
On March 3, Finance Manager Linda Cheyne presented council with a budget totalling $4,527,343, which represents a 4.82% increase over 2010 – a much different figure than the 10.9% increase originally presented to council a month ago.
In addition to a transfer of $210,307 in “rate stabilization funds, other changes made since February to decrease the impact on taxpayers include:
– removing $10,000 worth of accessibility upgrades at the Rockmosa community centre;
– reducing by $2,500 the heat and hydro costs at the municipal building;
– funding $25,000 worth of changes at the Rockwood splash pad (adding a UV system) from the Rockwood Hydro Fund;
– reducing a transfer to reserves for emergency measures from $5,000 to $2,500; and
– decreasing by $5,875 (to $120,000) the amount to cover the expenses, remuneration, and other costs for council.
Cheyne said the insurance bill for 2011 is expected to total $316,964 (up $49,000 or about 18% over the 2010 bill), which constitutes about 7% of the overall budget and in and of itself results in a 1% budget increase.
Several councillors complained about the joint and several liability scheme, which can see municipalities forced to pay an entire settlement if found to be just 1% responsible, while also expressing frustration they have no choice but to pay the increasing bills that result.
“The problem with this is, the insurance we have is the insurance we need,” Mayor Chris White said.
Several councillors proposed a minor change or two to the budget – including one from councillor John Scott to reduce by another $10,000 the figure set aside to pay council, but the mayor argued against that move.
“If you take it out of the budget, it’s not there next year [either],” White said.
Councillor David Wolk agreed, saying taking “a mouse bite here and a mouse bite there” is not going to make a huge difference in the overall increase.
“Where’s the big hole that’s sucking the money,” Wolk wondered.
But White stressed the budget provides “bare bone” services and council would be “hard pressed” to find any items to cut. Cheyne said another option would be reducing reserves, but she did not recommend that course, calling it a “last resort.”
One item that divided council was the proposal to delay roadside spraying for pesticides until 2012.
“I can’t for a nano second accept [that],” Wolk said. He said the reason council decided to proceed with the program this year is because of a plea from farmers and weed experts, whom he called “responsible, thoughtful people.”
White said the idea was to delay the program for one year and start it in 2012, when the county will also be spraying roadsides on the south side of the county.
He said the township spraying “wiggly piggly” just to say it’s doing something makes little sense – but he later conceded “if it’s the right thing to do scientifically, we’ll find the money.”
Cheyne said despite the proposed 4.8% budget increase this year, there will be some good News financially for the township in the coming years. For example, this year the debenture for Rockwood water and waste water capital projects will be paid off and in 2014 the debenture for the new Rockwood fire hall will be off the books as well, she said.
Near the end of the meeting, Parks and Recreation Manager Robin Milne reminded council the Wellington Dufferin Guelph Public Health Unit is asking the township for $3,500 to be put towards the unit’s active transportation plan.
But that idea was not well received at all by council.
“Ask again next year,” White said of the request, adding the item needs to be funded by the upper tier.
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The day after the budget meeting, White told the Advertiser township officials spoke to Terry Daynard – who was part of a recent delegation that implored council to start the roadside spraying program – and Daynard would prefer the township proceed in 2011 as planned originally.
“We’re going to start spraying this year,” White said.
He noted the $25,000 “ball park” figure – which he said actually may be closer to $15,000 – will likely come from reserves, so it will not affect the overall budget.
When contacted for comment, county weed inspector John Benham, who was also part of the Daynard delegation, said there’s no way the spraying should be delayed a year.
“Oh goodness, no; it needs to be done,” Benham said.
