Wellington North Township is trying to hold the line on the tax increase in its coming budget, despite wrestling with over $7 million in debt for Mount Forest’s new Sports complex.
Other debt facing the township is related to the new sewage treatment plant in Mount Forest and a pool in Arthur, bringing the total to an estimated $10 million, finance chairman and councillor Andy Lennox said at the April 11 public meeting.
About 25 people attended the public budget review hosted by Lennox.
He said the township is anticipating its budget will result in a 3.6% increase in the township tax portion, with the Wellington County increase coming in at a 1.36% and the education portion at 0.39%.
“The average blended rate is 2.05% which is a little less than the rate of inflation,” Lennox said.
The increase, if adopted by council in early May, would see taxes on a home assessed at $180,488 go up $51 – from $2,512 in 2011 to $2,563.
The Wellington North portion of the tax bill amounts to $969 and includes $456 for public works, $193 on recreation, $139 on administration and $94 on fire protection.
“The biggest expenditures are in public works,” Lennox said.
“We have a big infrastructure gap to fill. We’re not spending what we ought to be.”
Under its new budget process, the township has calculated annual capital spending to maintain infrastructure over the next two decades, including about $32,000 annually on administration and property.
Road spending should be kept at about $2.1 million annually over 20 years, while $260,000 should be spent annually on recreation and $143,000 on fire protection.
“We need to make the decisions we make to try and maintain a balance,” Lennox said of the budgeting process.
He estimates debt repayment at about $750,000 annually over the next 10 years for the arena debt.
After 10 years the remaining debt will be recalculated and is expected to run for another 10 years.
Lennox said the administration budget is anticipated to be higher than 2011 due in part to legal costs associated with bringing in a new development charge bylaw.
The township earlier this year struck a new bylaw which was later pulled when the Ontario Municipal Board (OMB) ruled proper procedure had not been followed.
The bylaw would have provided a $10,000 development charge on new single-family dwellings on full municipal services. The original bylaw still in force has the fee at $17,000.
“We anticipate significant legal costs in 2012,” Lennox said. Council will be setting new development charges later this year. “We expect to be challenged again,” he said.
The township will continue to source out potential finance sources from the federal and provincial governments and possible grants similar to the recent Ontario Trillium Foundation grant of $94.200 the township received for playground creation and upgrades.
Lennox anticipated the budget will be passed at council’s first meeting in May.
