KENILWORTH – Wellington North has essentially set its township budget for 2019 … the question now is how to pay for it.
Council held a special budget meeting on Jan. 21 to fine-tune and trim down the 2019 capital budget (a previous special meeting in December looked mainly at operating costs).
Monday’s meeting was chaired by councillor Dan Yake due to the absence of Mayor Andy Lennox at the start of the session.
Wellington North treasurer Adam McNabb picked up from the Dec. 21 budget discussion, citing a proposed 2019 tax levy increase (operating only) of 0.7 per cent – $36,162 – over the 2018 budgeted levy of $5,499,214.
McNabb noted Wellington North experienced growth of 1.12% in the past year, according to figures provided by MPAC (Municipal Property Assessment Corporation.)
Overall, council has a budget target of $7.42 million, including the operating budget of $5.53 million, net transfers to reserves of -$384,937, and a targeted capital budget of $2,275,000
At the outset of the meeting, the 2019 capital budget stood at $3,211,945 and staff sought council guidance on how to address the existing gap of $936,945.
That could be done through reduction of proposed capital initiatives or additional contributions from reserves/reserve funds.
McNabb, however, cautioned council the latter route includes few options, as aggressive capital budgets have eroded infrastructure reserves and the utilization of general equity accumulation to satisfy capital projects/debt servicing costs.
Over an hour later, very little had been dropped from the proposed capital budget as presented to council.
Removed items included a new council table and an audio system in the council chamber.
Another modification to save funds meant spreading out the replacement of street lights in Arthur and Mount Forest (to more efficient LED lighting) over two years instead of one.
A playground proposed for Campbell deVore Park in Mount Forest was deferred until discussions are complete regarding the exact location of a new community swimming pool.
Councillors were then asked to consider using reserve funding to cover 2019 and 2020 debenture payments, looking into the sustainability of aggressive capital budgets, utilization of general equity accumulation, and timing of receipt of grant and debt funding associated with the Arthur treatment plant.
Jan. 21 marked the final special budget meeting, as council believed remaining work and final approval could be conducted during a regular council session.
Following a telephone conversation with the Advertiser on Jan. 22, McNabb offered the following preliminary estimates.
“Average residential single family dwelling assessment has increased from $246,996 in 2018 to $257,935 in 2019,” he stated.
“Factoring in the weighted assessment impact of the levy distribution, and the fully loaded levy increase approved in principal by council at last evening session, preliminary estimates would suggest that the municipal-only impact of the proposed increase would raise municipal annual taxes on the average residential single family dwelling from $1,217.10 in 2018 to $1,244.75 in 2019 – or $27.65.
“This suggests a 2.27% tax change year over year.”
The tax increase does not include changes to the county and education portions of a residential tax bill, McNabb explained.
