Taking advantage of a lower Wellington County tax hike, councillors in Centre Wellington raised spending by 6.42% when they approved their budget at a special meeting on April 11.
Despite that increase, councillors indicated they are changing the way they operate and believe they are getting a handle on operations spending in favour of more capital projects.
The township will have an operating budget of $26.32 million this year and capital expenditures of $8.95 million. For a homeowner with an average assessment of $290,890, that means an increase of $53 in local taxes. The county portion, at 1.9%, will cost an extra $36, and there is no hike on the education portion. The total increase on that average home is about $89, or 2.7% more.
When the debates began, councillors made it clear they were unhappy about a couple of the proposals.
Councillor Mary Lloyd cited $300,000 that council was planning to find in its operational review that was supposed to be shifted to capital expenditures. She wanted to know how that was to be tied in, because she said council was uncertain it could find that savings.
Mayor Joanne Ross-Zuj said finance committee chairman Fred Morris suggested that is “a little bit of a leap of faith,” and she admitted, “We don’t have surety.”
Morris said council was directing staff to find the money in its budget.
But councillor Steve VanLeeuwen shared Lloyd’s concern, and said he does not trust “a leap of faith.”
He said council must “anticipate results,” and moved council reduce its operating budget by $300,000 in 2012. Those savings would be found when the operational review is done in the next few weeks.
Councillor Walt Visser seconded that motion, and councillor Kelly Linton said he likes the idea that staff are getting “pretty clear direction,” to cut expenses.
Morris argued council was saying, “You must find it somewhere. They can’t change what we decide. I think it’s got to happen anyway.”
But Linton said, “I think it’s healthy to disentangle the budget from the overview … We don’t want this year’s budget [cuts] in three years.”
Visser said flatly, “We’re going to have to pick some people out and have to pay for it. We’re just starting this process. The organizational review is a serious attempt to turn this ship around.”
Visser said the operating side of the township costs “can’t grow.”
VanLeeuwen reiterated, “We can’t take a leap of faith.” He said $300,000 of that savings was to be directed to capital works, and council has a schedule of projects it planned to complete.
Council faced other cuts, too. The Ontario Municipal Partnership Fund grant from the province was reduced by ten per cent, a total of $110,000. That funding has dropped in Fergus;
– $135,000 for Elizabeth Crescent resurfacing, from Woodhill Drive to the subdivision limits, in Fergus;
– $100,000 for pre-engineering of a new public works building;
– $200,000 for rural road upgrades;
– $160,000 for 2nd Line from County Road 7 to Highway 6; and
– Jones baseline from Nichol-Peel Township boundary to Side Road 20.
New attitude
VanLeeuwen said after the budget was approved with those changes, “It speaks loud and clear; we’ve got the message,” and that operating costs are down.`
Lloyd thanked Morris and the township’s financial staff for their work, and said the budget demonstrates councillors understand “each and every tax dollar is valued.”
Councillor Kirk McElwain said he thought the process started very positively and hearing from delegations was new, and a good thing.
But, he said, later the process seemed to “fall off the rails.”
He said rushing the budget was not necessarily a good thing and did not allow for “sober second thought.”
VanLeeuwen said, though, he was not happy the budget took so long. Councillors are aware the faster they get tenders for capital projects out, the more likely they will get a good price.
Ross-Zuj admitted that with the late budget “some projects might not get done this year,” if they go too far over the budget
Visser thanked Morris and the mayor for her efforts to obtain more money for the township.
He said the budget talks should start much earlier and there is no reason it cannot be completed as early as December.
Ross-Zuj said this year, provincial funding was not announced until the end of February, but councillors have seen in other years the earlier they tender capital projects the more likely they will receive a good price.
As for future years, she said OMPF funding is “gone” for the township.
As for cuts to operations, Visser said, “I’m very pleased with what happened today. Like you said, Steve, we’re heading in the right direction.”
Morris, for his part, thanked all staff and especially the three councillors who are new this term.
“Last year, you were kind of thrown to the wolves,” he said, noting they were elected and asked within a few months to pass a budget.
As for this year’s work, “It’s been a challenge and a challenging time,” Morris said. “The effects of 2008 are still with us.”
