MAPLETON – Council here is considering a three-year operating budget with an average annual levy increase of 4.03 per cent.
The proposed budget, presented by director of finance John Morrison to Mapleton council on Oct. 24, would see a levy increase of 4.26% in 2024, followed by increases of 5.98% in 2025 and 1.84% in 2026.
For 2024, the draft budget projects $15.9 million in total spending against about $6.5 million in revenues, leaving about $9.86 million to be raised through the local tax levy, up $402,652 or 4.3% from $9,459,939 in 2023.
Individual residential taxpayers would pay about $510 per $100,000 of assessment, an increase of just over $18 (3.7%) from the $492 paid in 2023.
Morrison’s presentation indicates inflation will be among the significant factors affecting the budget. Others include:
- a 2% ($59,445) increase in insurance premiums;
- $24,600 reduction in Ontario Municipal Partnership Fund contributions;
- 12% increase in materials and supplies;
- 34% rise in fuel costs;
- phased-in move to market-based salaries over three years of 9%, 5% and 5%;
- 24% increase in contractual services; and
- 23% rise in IT services.
The budget includes about $12.7 million worth of capital work in 2024, including:
- about $6.8 million (over 53% of the total) on water and wastewater
- approximately $2.8 million (22%) on roads and sidewalks ;
- $1.5 million on bridges and culverts (11.9%)
- $765,000 (6%) on vehicle fleet and equipment;
- $455,000 on facilities (3.6%);
- $22,800 (0.2%) on parks;
- $14,460 (0.1)%) on fire services; and
- $316,108 (2.5%) on other assets.
“Relatively speaking, we’re doing very little with operating through this cycle other than just kind of treading water,” said Morrison.
“The revenues for taxation are in proportion to our revenues we earn through fees and charges and the grant money. Even though we lost $24,000 this year, it has been pretty steady as well.”
Mayor Gregg Davidson said the proposed increase seems reasonable in light of inflationary pressures.
“Definitely this is not a great year and we know that it’s not going to get a lot better in the next couple of years,” he said.
“For us to come in with a 3.68 per cent tax (rate) increase, from what’s going on with the economy with the interest rates, I think that’s pretty darn good.”
He added, “I think, John, you and staff have done an amazing job of coming up with this number.”
The presentation includes a forecast of $83 million in capital expenditures over the next 10 years, including $13.9 million on bridges and culverts.
Councillor Marlene Ottens asked if any of that spending could be deferred or eliminated in order to reduce the tax impact.
“Have we ever thought about just not fixing some of these little bridges that are in the far corners?” asked Ottens, referencing a $1.5 million project spread over 2024 and 2025 for a bridge on a sideroad that provides access to only one property.
“It’s a huge amount of money for a tiny little bridge that services one house – and they can go the other way – it’s not nice, but they can … Is that something that we, as a township would consider, just closing a bridge when it becomes comes unsafe rather than throwing all that money at it?”
“That is always an option for council if there’s always a different route for that individual resident to get out,” said public works director Jamie Morgan.
“And you always look at things like emergency services and stuff like that for them too, but it has been done before. There is a process.”
A motion presented by Ottens to have the public works director investigate if any bridges in the township could be potentially be moved further out in the long-range capital budget or closed was approved by council.
Council also passed a motion to accept the budget presentation as information.
Public open houses on the proposed budget are slated for Nov. 6 at the Alma Community Centre and Nov. 7 at the Maryborough Community Centre in Moorefield.
Council has set a target date of Nov. 28 to complete the budget process.
