Puslinch Township held a public information meeting on Jan. 16 to receive input, prior to council approval of the 2018 budget.
Only two members of the public attended.
Director of finance Mary Hasan, who explained work on the budget began in August, stressed, “the process does not end when the budget is adopted.”
Hasan clarified, “Costs change, new projects may arise or projects may be delayed when better information is available.”
Hasan noted that for each dollar of property tax collected, the township receives 17 per cent, the province gets 17% for education and the remaining 66% is directed to Wellington County.
In 2018, 82% ($3.1 million) of the Puslinch budget is being directed to operating, compared to 76% ($2.6 million) in 2017.
Hasan explained the change in the level of tax levy funding from capital to operating is a result of the township setting aside funds for unknown financial implications associated with OMERS (Ontario Municipal Employees Retirement System) and non-full-time continuous employees.
As a result, the capital budget was reduced to less than what was spent in 2017, Hasan said.
In 2017, capital spending of $840,866 represented 24% of the budget, while the proposed 2018 capital spending is $690,849 (18%).
Hasan said the proposed overall budget is increasing by 7.5% from $3.48 million to $3.74 million.
She explained the capital budget decrease of $150,017 can be attributed to no capital discretionary reserve contributions proposed for 2018, compared to $190,500 approved in 2017.
The operating budget for 2018 is proposed to increase by $412,476. Major increases include:
– $361,100 in contributions to operating discretionary reserves proposed for 2018 compared to $22,787 approved in 2017 (this change relates to OMERS);
– net tax levy funding of $13,480 (after utilizing the legal contingency discretionary reserve) for a legal matter before the Normal Farm Practices Board;
– net tax levy funding of $11,426 (after utilizing the election discretionary reserve) for the 2018 municipal election; and
– a cost of living adjustment of 1.69% or $32,097.
Hasan said the 2018 median assessment for a typical single family home in the township is up 2.62% ($14,750) to $577,500 in 2018.
Based on the proposed 2018 budget, the 3% township tax increase amounts to a $28 increase for ratepayers with a household valued at $577,500. That would move the township portion of the tax bill from $934 in 2017 to $962 in 2018.
To show the overall impact, Hasan stated that if the township had a 3% increase to its portion of the tax bill, Wellington County increased its taxes by 2.5% and there was no increase to the education levy, overall taxes for residents would only increase 2.16% overall.
Capital budget highlights in the public works department include:
– bridge and culvert inspections, $7,500.
– Concession 4 between Wellington Road 35 and Sideroad 10, $230,000.
– Forestell Road between Wellington Road 32 and Roszell Road, $145,000.
– Victoria Road between Aberfoyle Pit 2 and Wellington Road 36, $445,000.
– Forestell Road between Wellington Road 35 and Sideroad 10 North, $230,000.
Hasan noted these projects are not funded solely through tax dollars.
Notable “corporate” items in the budget include:
– computer equipment, $15,000;
– municipal drinking water well system feasibility study, $5,000; and
– municipal class environmental assessment/municipal water and wastewater, $350,000.
Finance highlights in the budget include an asset management plan revamp, at $58,000.
In the parks department, notable items are a Kabota lawnmower for $30,000 and painting of a shed for $10,000.
At the municipal office, expenditures include a meeting room and new flooring for $10,000 and roof painting at $17,500.
In the fire department purchases include:
– structural firefighter ensemble, $15,105;
– truck cap enclosure and cargo sliding truck bed, $4,859; and
– new storage cabinet set and additional firefighter gear racks, $4,611.
At the Puslinch Community Centre notable items include roof painting for $11,000, while the building department will purchase a computer tablet for $9,000.
Discussion
Resident Bruce Joy asked if the 66% of taxes going to the county was standard across the province or whether it could be changed.
Hasan said the education rate is set by the province and Wellington County sets its budget on a yearly basis. Taxes are based on that budget and divided through the assessment of lower tier municipalities.
Joy asked how that related to other municipalities.
Hasan said the county contribution in Puslinch is higher than northern municipalities in Wellington because the assessed property values in Puslinch are higher.
Mayor Dennis Lever added there is no direct comparison because lower tier municipalities and the county offer different types of services to residents.
Lever said the average rural residential property in Minto is just over $200,000 while the median home in Puslinch is valued at $577,500.
But the same county rate applies to both properties.
Joy asked when the parks and recreation plan is moving forward. Hasan said council is working to fund it. Part of that may include grant funding from the federal and provincial governments, she added.
“Right now it is showing up in the forecasts for 2021 and 2022,” she said.
Joy clarified he is a member of the local soccer club and said the township purchased land five years ago for a new soccer field.
“When are we building the field?” he asked.
Hasan said council has requested costs to build a field, and those figures will be included for discussion as part of the 2019 budget.
OMERS
Lever noted there is an issue before council which is fairly complicated and has the potential to be expensive: OMERS.
CAO Karen Landry said Puslinch joined the pension plan program in 1963 and in 1988 OMERS changed the regulations for participating in the program. That meant the municipality needed to offer the program to not only full-time employees but to all who meet certain thresholds.
At that time, the township did not fulfill that requirement. Now the township is working with OMERS to look at where offers should have been made to employees.
Landry said if an employee met those thresholds for two continuous years, the township is obligated to provide notice that they can voluntarily enroll in the OMERS pension.
Landry said the financial impact is unknown, noting, “At this point the township is working to determine employees who would have been eligible.”
The information will be submitted to OMERS, which will provide a calculation, Landry explained.
If funds are not required, Landry anticipates putting the money back into reserves, where it would normally be directed.
Puslinch council held a special meeting on Jan. 24 to review the budget prior to its regular council session later that night (results not known by press time).
