Kincardine gives final approval to 2015 budget

It was unanimous as Kincardine council gave final approval to the 2015 budget Wednesday night (March 11).

In a recorded vote, all members of council were in favour, with councillor Mike Leggett absent.

The budget includes $23-million in operating expenses and $4.8-million in capital expenses, for an overall budget of $27.8-million, says treasurer Roxana Baumann, in a press release. In comparison to 2014, operating expenses have been reduced by $320,000, or 1.4 per cent.

The municipality’s budget was significantly impacted by the decline in non-tax revenues and grants, which in aggregate, amounted to a loss of $1.219-million for 2015. The decline in revenues was partially alleviated by a reduction in policing costs of nearly $400,000, which is a direct result of the implementation of a new OPP billing model, effective Jan. 1, 2015.

Further cost reductions were made in the areas of economic development, conferences and training, building and equipment maintenance, audit fees, and election reserve contributions. While operating expenses have been reduced significantly, a tax-rate increase was unavoidable in order not to compromise the existing programs and service levels provided to the community.

The municipal tax-rate increase for 2015 is 7.08 per cent, which will generate $694,000 in additional tax revenues. An average residential home, with an assessed value of $250,000, will see an increase in the total annual property tax bill of $80, or $6.67 per month.

Council has also recognized the importance of implementing best practices in asset management, and therefore 1.5 per cent of the tax-rate increase, or $150,000, will be directed toward future capital and infrastructure requirements, with particular emphasis on roads and bridges.

Included within the $4.8-million capital budget are the following notable projects, all of which will be funded from existing reserves and reserve funds:

• $965,000 to fund Phase 2 of the renovations for the Kincardine Arts Centre
• $836,000 to fund the Phase 1 surface coat in Huron Ridge and to complete the final phase of the Huron Ridge road reconstruction work, of which $143,000 is funded through the Ontario Community Infrastructure Fund (OCIF)
• $624,000 to replace the aeration system at the Kincardine Wastewater Treatment Plant
• $465,000 to replace the arena roof at the Davidson Centre
• $360,000 to repave the downtown municipal parking lot
• $354,000 to fund the exterior overcoat of the Tiverton and Kincardine standpipes

The budget also includes the following community initiatives:

• Continued support for physician recruitment and retention
• $50,000 to fund the Community Investment Grants program
• $50,000 for continued phragmites eradication along the shoreline
• Support for the Kincardine Lions Club Splash Pad, scheduled to be operational by spring, 2015

For details of the 2015 budget, click here.