Proposed Midland tax hike trimmed to two per cent

Final vote on town budget scheduled for Jan. 24
By Nicole Million Midland Mirror Jan 19, 2011
MIDLAND – After months of back and forth, Midland councillors will get down to voting on the town’s 2011 budget at their Jan. 24 meeting.
Council was presented with two options for the fourth draft of the budget during a special meeting Monday at the North Simcoe Sports and Recreation Centre.
The first option included a reduction of $44,300 in payroll items and $28,000 in total operating costs, which would see the municipal portion of the tax bill rise 2.6 per cent. The total tax bill increase would be 1.7 per cent.
The second option included only one additional item – $100,000 in Midland Power Utility Corporation (MPUC) dividend revenue to be recognized in the 2011 budget and applied to capital expenses.
“The $300,000 dividend amount would be changed to $400,000 and, from discussions at the staff level, this appears it could be a commitment for the next four years,” noted treasurer Sue Gignac.
Under the second option, the municipal tax hike would drop to two per cent, and the total tax bill increase would sit at 1.3 per cent.
Gignac said taxes on a home assessed at $181,300 in 2010 were $1,777. The two per cent increase, she noted, would result in an increase of $35, meaning the 2011 taxes for town purposes would be $1,812. The $35 increase is equivalent to $2.96 per month.
“On the total tax bill for 2010, when you include the county, education and waste components of the tax bill, the 2010 (figure) was $2,837. The $35 increase represents 1.3 per cent,” she explained.
“I think that’s something I can definitely live with,” Coun. Mike Ross said of the numbers presented to council.
Coun. Zena Pendlebury was a little more cautious about throwing her support behind the proposed budget.
“The numbers look very impressive. However, I have some concerns,” she said, adding she has received calls regarding capital projects that have been cut or postponed. “We’re going to eventually get hit. At some point in time, the numbers won’t be looking as good as these.”
Gignac said the town would be responsible for 1.3 per cent of the total tax bill increase, a number calculated using a zero per cent increase from the county, as the town does not yet have those numbers.
“In order to totally isolate the town’s impact on the bottom line of the tax bill, you have to keep the other components at zero,” she said, adding increases from the county portion would be their responsibility. “I’ve not projected that.”
Coun. Bob Jeffery questioned whether it would be smart of council to vote for the second option – which included the additional $100,000 dividend – as it is subject to MPUC board approval.
“I am very hesitant about spending money we don’t have, or money we’ve been promised but don’t have,” he said.
Nonetheless, council voted for the second option to be brought forward Jan. 24 to be ratified. If the MPUC board does not approve the additional $100,000 dividend, council would shift to the first option.