KENILWORTH – Wellington North council is satisfied with a five per cent increase to township tax bills to pay for an increasing budget.
The budget process began with department heads in September, with council getting a first look at a draft presented by treasurer Jerry Idialu on Nov. 20.
Idialu originally proposed an increase of 5.87% but council asked for staff to return with a draft revised to no higher than 5%.
The budget is split into operating costs (what it takes to run government and provide services to residents) and the capital budget (roads, bridges, dams, sewage plants and the like).
Specific pressures on next year’s operating budget include wage and health benefit increases, rising insurance premiums, increasing hydro charges and the high cost of construction.
The operating budget is proposed to increase to $9.64 million in 2024 from $9 million this year.
But more than anything else, it’s the cost of infrastructure that presents the most significant demand on municipal budgets across the province.
The capital portion of the budget is $23.3 million, including a second-phase upgrade to the capacity of the Arthur wastewater treatment plant.
Growth-driven projects account for 62%, or $14.5 million, of the total capital budget.
The last time the township was eyeing a capital budget that significant was in 2019, when council embarked on first-phase upgrades to the treatment plant with a $19.3-million capital budget.
Without the second phase upgrade accounted for, the 2024 capital budget could ring in at $9.77 million. That’s consistent with other years, council heard.
Idialu noted user fees for wastewater will pay for the upgrade, and staff intend to return with a recommended funding model.
Once new growth to the tax base is factored in, next year’s tax increase to residents comes in at 4.94%.
For a residential home valued at $271,636 in 2016 dollars the bill for the township’s portion would be $1,468 — an increase of about $66 for 2024.
To get the demand on the levy down to where council wanted it, staff found around $5.2 million in capital projects to defer, including several road reconstruction projects, two proposed pedestrian crossings, playground equipment, a water main, parking lot repaving and Mount Forest dam maintenance.
“I think this is something that I can defend publicly,” councillor Steve McCabe stated of the budget.
Councillor Penny Renken advocated for the township to do something to make crossing the intersection at Main and King streets in Mount Forest (one of two crossings staff suggested deferring) safer for pedestrians, but said she would support the budget as is.
Councillor Lisa Hern wanted to see a smaller increase but said she couldn’t find anywhere logical to cut without affecting the township’s current service level.
“I’m happy with it kinda where it’s at,” she said.
Mayor Andy Lennox said the increase seems “an awful lot to ask from our residents.
“Especially at a time when lots of them are facing (financial) challenges and difficulties as well.”
But not spending on capital expenses will lead to long-term pain, he said, adding, “If anything, we’re probably not doing enough.”
Township staff will continue working toward a final budget with the next meetings planned for Dec. 11 and Jan. 15.
