MAPLETON – Officials here are forecasting a 2.17 per cent reduction in municipal taxes next year, based on the second year of a multi-year budget.
On Dec. 1, finance director John Morrison said ratepayers would receive a reduction of $10 per $100,000 of assessment – down from $476 to $466 – on their taxes for 2021.
That’s because the tax levy remains steady at $8.5 million (0% increase), but there was a 1.4% increase in assessment across the township, which results in additional tax revenue of $119,000.
“We’re coming into 2021 and obviously we’ve had COVID around for a while now and we have some people and some businesses that are struggling so having a tax reduction for 2021 and not having the MPAC assessment being changed is going to be a real benefit to our community members,” said Mayor Gregg Davidson.
“So I do appreciate having that reduction for 2021, even if we do have to put it up in 2022.”
The tax rate increase in 2022 is scheduled for 2.7%, which Morrison said would be about $10 per $100,000 of assessment, not factoring in additional growth in the next two years.
“It’s possible we’d give them a reduction in 2021 of $10.33 and in 2022 we claw that back and go back to where we have been stable for the last couple years,” Davidson said.
The total capital budget for 2021 is set at $9.2 million and the total operating budget for 2021 is about $13.98 million, which is up $354,618 from 2020’s $13.62 million.
One of the major capital projects is the construction of the wastewater pumping station and forcemain for $3.6 million.
Councillor Paul Douglas asked whether construction would begin in 2021 on the Drayton water tower, which is scheduled to cost $4 million.
“It’s budgeted in 2022 and based on the report from last meeting, it looks like the construction may be able to start next year,” Douglas said.
“Just wondering how that timing plays out. “
Because the budget is multi-year, Morrison said projects over the next two years could blur together.
“The water tower will start construction,” CAO Manny Baron said.
“There is a presentation coming to council with what studies CIMA is doing, what the timelines will be for things like pumping stations, but like Mr. Morrison said, because it’s a two-year budget, we can shift some of that money but there definitely will be some construction costs in 2021.
“Not the full amount, but certainly some. “
Morrison said the municipality has the ability to fund all anticipated water and wastewater projects proposed in the next two years.
“It’s fair to say we’re going to have a very busy two years when it comes to our water and wastewater infrastructure,” Davidson said.
Councillor Marlene Ottens asked why the fleet and equipment budget was at $545,000.
Director of public works Sam Mattina explained that four new employees hired in the spring have the skills to do much of the work Mapleton has been contracting out, but the township doesn’t have the necessary equipment.
By purchasing an excavator, excavator float and road-widener, and plow and sweeper attachments for the front-end loader, the employees can take over the contracted work.
“I know when I’ve had some chats with … the new staff that we hired, they’re really anxious to get into doing what they used to do with their old jobs and bring their expertise here to Mapleton and to have the proper tools for them is very important,” Davidson said.
“So I’m glad to see that those items are in there. Especially if we can remove contract people doing work for us and have our own staff do it.”
Councillor Dennis Craven asked for clarification on surplus and deficit.
“If we have a deficit at the end of any year, does that still have to be made up next year?” he asked.
Morrison said the surplus and deficit is not addressed until the end of the three-year budget.
Council was also concerned about new staffing.
While the budget does not address new hires, Baron said the township is currently in the process of creating a position for someone in the recreation department.
“If we hire that person there will be no additional impact to the budget, so the budget will remain the same as today because there is some wiggle room,” he said.
Baron also said staff is currently looking for internal efficiencies to reduce the tax burden further.
Morrison said the township is at the beginning of its asset management program and is just beginning to implement the work order system.
“This is going to be a big project for this municipality to engage in, because this is a very complex topic,” Morrison said.
He suggested setting aside $45,000 in 2022 for a joint venture with Centre Wellington and possibly Wellington North to secure resources to help public works departments development asset management lifecycles.
“The beauty of that would be you probably trip over all sorts of procurement opportunities amongst municipalities because once you start realizing municipality ‘A’ needs to replace five culverts this year and municipality ‘B’ needs another four, maybe you should go out and buy some culverts instead of just relying on the RFP and person issuing the RFP to come up with the best price,” Morrison explained.
“So there are some significant savings here. I think this is going to have a very complex approach as we move forward in time.”
As the program is implemented in the next 24 months, Morrison said the township should see significant savings.
Capital spending in the 2021 budget includes:
- bridges and culverts: $810,600;
- roads and sidewalks: $2.6 million;
- facilities: $195,000;
- parks: $26,000;
- fire services: $44,000;
- fleet and equipment: $542,000;
- other assets: $353,718; and
- water and wastewater: $4.6 million.
