MINTO – The Town of Minto will spend just under $4.4 million on capital projects in 2022 if council approves the current budget draft.
Much of the capital spending in the 2022 budget, themed by staff “Responding to Growth” will be on hard services, treasurer Gordon Duff told council at a special capital budget meeting on Nov. 30.
“Public works, that’s where the majority of it is,” said Duff.
Highlighted capital spending in the budget includes:
- computer hardware replacement, $60,000;
- administration building equipment and upgrades, $20,000;
- $105,000 for industrial development projects in Harriston;
- $110,000 for improvements to Clifford Celebration Square;
- $100,000 for fire hall renovations; and
- $100,000 for pedestrian crossovers.
In addition, in October council approved an amendment to the 2021 capital budget to facilitate borrowing for the town’s share of a $2.4-million renovation and expansion of the Palmerston arena, community centre and sports fields.
The town approved borrowing to cover the towns’ $650,000 share of the project, which is being funded through a $1.7-million grant from the federal/provincial Investing In Canada Infrastructure Program.
The amendment also cleared the way for borrowing to facilitate a $2.9-million replacement of the clarifier at the Palmerston wastewater treatment facility, $500,000 for roadwork on the 12th Line and additional borrowing for a major construction project on White’s Road which has been moved forward by several years to facilitate an expansion of the Royal Terrace Long-Term Care facility in Palmerston.
The total estimated cost of the White’s Road project is $3.7 million, with the County of Wellington’s share estimated at $1,745,000 and the Town of Minto’s share at $1,955,000.
The cost for the town is to be financed by $445,000 from development charges with the remaining $1,510,000 to be borrowed. The road work of $575,000 would be debentured over 10 years with the water and wastewater components of $580,000 and $355,000 to be debentured over 20 years.
“We’ve taken on a bit more debt. But it’s all for necessary expenditures,” said Duff.
“We approved this not quite two months ago and we thought we should pull the trigger and go to the market now, even though these projects are mostly into spring.
“And if you listen to any news report now all you hear about is inflation and possible rising interest rates, so I think that’s going to be a wise decision.”
“Obviously one of the big projects is our Palmerston community recreation centre renovation for $2.4 million,” said CAO Derrick Thomson.
He advised council the town’s evaluation team is currently reviewing proposals for the project and hopes to bring a recommendation to council before the end of the year.
Duff said the $4,373,00 in 2022 capital spending will be financed with $465,000 in development charge reserves, $1 million in tax-based reserves, $711,000 in water/wastewater reserves, $888,000 in anticipated subsidies and grants, $798,000 in surplus capital funds from previous years and $466,000 in funds recovered from other sources, such as municipal drainage projects or service club co-payments for joint projects.
Roads and drainage manager Mike McIsaac projected “a light year” for road projects in Harriston and Clifford, with White’s Road as the major project in Palmerston.
“Out in the township we have a few things going on,” he pointed out, including a multi-year road rebuilding project on the 12th line.
“We’ll be finishing up with the paving from Road 1 North to Wellington Road 6 to get that one finally finished for the residents out there.”
Thomson pointed out the $4.4 million in capital spending falls short of the $8.8 million in annual spending recommended in the town’s asset management plan “to maintain tangible assets.”
Duff noted, “In a perfect world that figure would be $8.8 million and that figure is about three years old now.”
However, he added, “Pretty much no municipality in Canada can afford to do what’s required to address the infrastructure deficit.
“But you whittle away at it and try and walk that fine line between moderate tax increases and keeping track of what your debt burden is.”
Deputy mayor Dave Turton asked if there would be a turning lane added in front of the Palmerston and District Hospital as part of the White’s Road upgrade.
The hospital is adjacent to Royal Terrace, where the province has approved an additional 29 long-term care beds.
Minto taxpayers with questions about the town’s 2022 budget can sign in to an online public budget meeting on Dec. 14 at 5pm. Minto council agenda image
“Basically what you see there is going to be replaced. Sidewalks will be a little bit wider. Curb and gutter, were taking it right out to the town limits,” McIsaac explained.
Councillor Jean Anderson asked about provisions for access to the hospital during construction.
“There will be an access maintained at all times,” McIsaac assured.
Anderson also inquired about contingency plans in case capital funding sources dry up.
“I’m assuming there’s some fluidity there in all of this because it doesn’t look like we’re finished with COVID yet,” she said.
“I expect were going to have more pressures and … were getting pretty close, I assume, to where we’d like to max out our borrowing. What happens when the feds say there’s nothing left and you’re on your own?”
“There’s a certain amount of placeholders in this five-year forecast and COVID has juggled stuff around, there’s no question, and delayed us on doing more detailed work,” Thomson explained.
He added his goal is to eventually get a 10-year capital forecast in place to match the projection range for development charges.
With projected 2022 reserves of $11.5 million against about $9.6 million in total debt, Thomson said the municipality is on solid financial ground.
“We’re paying off a million and a bit every year … That debt will come down rapidly,” said Thomson.
“I think what you’re seeing in this particular case is a bump in the road just because we have the clarifier and White’s Road in the same year,” Thomson asserted.
Duff added, “You have to be a little bit reactive sometimes, when opportunities come along, or pressures.”
Councillor Judy Dirksen asked if the allocation for pedestrian crossovers is in response to a community group that petitioned council for an additional crossover on both Arthur and Elora Street.
McIsaac confirmed the allocation is a response to the group’s request and that some engineering work had been done to determine potential costs.
“Unfortunately, they roughly do cost around $70,000 to $100,000 apiece depending on all the bells and whistles that go with them or moving infrastructure around them,” McIssac added.
“So it looks like, Judy, we can do one,” observed Mayor George Bridge.
Minto treasurer Gordon Duff explained at a Nov. 23 budget meeting that current projections in the 2022 draft budget result in a 2.2 per cent increase in the local tax levy (the portion of the budget paid for by local taxation).
Duff is estimating a local tax rate increase of 0.85%, meaning a tax increase of just over $11 for local municipal purposes, based on the average residential home assessment of $242,000, if the current draft of the budget is approved.
The next step in the budget process is an online public forum to gather taxpayer input. That meeting is set for Dec. 14 at 5pm.
Presentation of the budget for final approval is anticipated at the Dec. 21 meeting.
All Minto council meetings are currently being held remotely. Information on live access to online meetings can be found on the town’s website or Facebook page.
