WELLINGTON COUNTY – Preliminary figures in Wellington County’s 10-year plan show ratepayers are facing a 2.5 per cent tax increase to support a 4.2% levy increase for 2021.
The plan calls for a levy of around $110.1 million, up from around $105.6 million in 2020.
“At this point, just overall, we’re looking at a 2.5 per cent tax increase,” states councillor Chris White told council on Nov. 26.
White, the chair of the administration, finance and human resource committee, stressed the 2021 numbers are preliminary and subject to completion of the budget process.
Council will hold a special meeting either in person or via Zoom, depending on pandemic situation at the time, in early January, “where we begin to take this apart and take a look at it,” White explained.
The budget will then go back to individual committees for review prior to presentation and probable passage during the regular county council session on Jan. 28.
Beginning in 2022, the 10-year plan shows scheduled yearly tax increases ranging between 3.4 and 3.9% up to 2030, to support levy increases ranging between 4.4 and 5% during that period.
The plan projects total county spending in 2021 at $232.6 million against revenue of about $122.5 million.
In 2020 the county budgeted for total spending of about $229.8 million against revenues of $124.2 million.
A report by deputy treasurer Susan Aram, notes the preliminary 2021 budget tax impact is lower, 2.5% versus 4.3%, than was predicted at the time of the passage of the 2020 budget and 10-Year Plan.
“This is extremely positive news given the challenges brought upon by the pandemic,” stated Aram, who credited the the provincial government for providing emergency funding to help municipalities manage the impacts of COVID-19.
White told council 2020 budget projections show “we’re still on course” with a surplus of about $1.7 million anticipated by the end of the year.
Given the pandemic impact “and all we’ve gone through,” said White, “we’re still on track and doing a bang up job.”
Arram’s report notes staff have managed to keep the tax impact below 4% in each of the nine forecast years, partly due to strong assessment growth, with weighted assessment growth currently estimated 1.7%.
“This strong level of growth has allowed the county to continue to provide service enhancements including standardized weekly collection (rural and urban) of recyclables and organics (green bin pickup), and enhanced leaf and yard waste collection – at an additional cost of approximately $1.4 million that is being annualized for the first half of 2021,” the report explains.
The county’s capital plan calls for total spending of $436.8 million over the next decade, with expenditures largely being driven by the county’s network of roads and bridges.
Spending on road, bridge and facility infrastructure accounts for just under 70% of capital expenditures.
Investing in infrastructure on that scale requires increases in reserve transfers, debt charges and tax levy funding and is the primary driver of projected tax levy increases over the 10-year plan, the report explains.
Other key capital initiatives in the 10-year plan include:
- the construction of new ambulance facilities throughout the county;
- the development of the county’s only active landfill site at Riverstown;
- an administrative centre expansion;
- a plan to construct three new affordable housing buildings; and
- ongoing investment in county-owned existing social and affordable housing units.
“There will be continued pressure on the county tax levy impacts in future years, including the proposal of a new continuum of care model at the Wellington Terrace, our long-term care home; an aging population requiring additional health care and emergency response requirements,” the report states.
The report notes the county’s grant revenue from Ontario Municipal Partnership Fund has been reduced by $192,200 in 2021, based on allocations from the province.
It is assumed the grant funding will be phased out over a four-year period, “representing a further reduction of $272,400 each year through to 2024 to bring the funding down to $0 at that time.”
