Huron-Kinloss draft budget calls for 4.7% increase in tax rate

Huron-Kinloss council has given initial approval to a draft 2016 budget, with a 4.7-per-cent increase in the municipal tax rate.

Council met Monday (Feb. 29) to discuss the budget which had been drawn up by treasurer Jodi MacArthur and staff.

Mayor Mitch Twolan commended the treasurer and staff for bringing forward a 4.7-per-cent increase right off the mark, which is a good indication of the issues the township is facing this year.

In her report, MacArthur said that once the municipal tax rate is combined with the Bruce County levy and the education tax, the overall residential tax rate would increase by 1.9 per cent which equates to $55.83 more on the average residential assessment of $243,705.

The total levy increase is $547,000 or 8.7 per cent, said MacArthur. "In 2014, we had a surplus of $154,407 that was brought in as revenue in the 2015 budget. This year we have no surplus funds. The total net increase to the capital budget is $23,217."

She said the fire department budget has increased by $127,005 to accommodate firefighter training and the wages of a full-time fire chief. The total increase for policing is $240,527, off-set by the increase in Ontario Municipal Partnership Fund (OMPF) funding of $92,000, and the transfer from the tax mitigation reserve of $51,295. This leaves $145,339 in funding directed to the operating budget, representing a 2.04-per-cent increase in the overall operating expenditures.

"This year's presentation contains requests that are necessary to maintain the levels of service we have been providing, and capital projects that are consistent with prior year spending and priorities," said MacArthur. "I would be reluctant to recommend reducing requirements much lower than has been presented, unless council is prepared to reduce service levels. Such cuts would result in unrealistic budgets, and we would assume the risk of running a large deficit or simply not being able to complete the proposed projects and purchases."

During discussion, MacArthur said a lot of the assessment growth from construction in December, 2015, has yet to come in during the first quarter of 2016.

She noted that the 2014 accumulated surplus is $60,290,764, which has grown every year since 2009. Therefore, exclusion of these expenses has not negatively impacted the township's financial situation.

Also, to date, the township has not considered funding amortization, but capital fund contributions in 2014 were $2.64-million, representing a significant investment in asset rehabilitation and/or replacement.

At this time, MacArthur recommended no change to the current practice of excluding these expenses, plus the post-employment benefits and landfill closure and post-closure expenses.

Council okayed the grants to organizations, including a $5,000 grant to the Bruce Botanical Food Gardens. However, councillor Don Murray requested the financials from this organization for council to review.

He also asked if the township should consider a grant to the Wingham and District Hospital Foundation for its proposed new multi-million-dollar medical centre.

MacArthur said the township has $60-million in assets of its own to maintain. "If we are raising taxes to pay for assets in other jurisdictions, we should be putting more money into our own assets."

Deputy mayor Wilfred Gamble added that the Kincardine hospital board will soon be requesting money for renovations to that facility, as well.

Twolan suggested council draw money from the Nuclear Waste Management Organization (NWMO) community fund and pledge $12,500 per year over four years, for a total of $50,000, to the Wingham hospital. Then, if Kincardine asks, the same could be set aside for that facility. Currently, the NWMO fund has $402,000 in it, he said.

Council agreed with that proposal.

The township also discussed water and sewer rates which increase by 6.5 per cent this year. Plus, a proposed facade and storefront signage improvement program, and an infrastructure works/building restoration and accessibility enhancement program for the Ripley and Lucknow downtown cores.

The facade program would be administered through a grant financial incentive where a proposed project that satisfies the relevant township guidelines, would receive up to 50 per cent of the capital cost of the improvement to a set maximum. Bruce County would partner with the township and cover one-third of the cost through the Spruce the Bruce program. The county would also administer the program.

The building restoration program would be administered through a tax increment equivalent grant. The township would provide tax assistance equal to all, or a portion of, the municipal property tax increase, following the completion that has resulted in an increase in the assessed property value.

Both programs would be financed with $100,000 from the community well-being reserve fund.

"We need our commercial cores to be successful," said Twolan.

Council agreed both programs are a good idea and approved them.

Staff will now draw up a draft budget bylaw and bring it to council for approval in March or April.