Penetang tax hike at $10 after further tinkering

By Nicole Million Simcoe.com Feb 11, 2011

PENETANGUISHENE – Penetanguishene residents will have to come up with an extra 10 bucks in municipal taxes this year under the town’s proposed operating budget.

“Right now, if we make no further cuts to the operating budget, the average semi-detached residence would be paying $9.99 more property taxes in 2011 for the town portion,” treasurer Jim Schaefer told councillors Feb. 9. “This does not include the county and education parts of the tax bill, (or) the capital budget.”

He said municipal taxes on the average Penetanguishene residence would be $1,823.55 under the proposed budget – a 0.43 per cent increase. After a budget meeting a week earlier, Mayor Gerry Marshall indicated the goal of zero per cent remains on the table.

“I am very happy with where we are sitting. Our ability to deliver a zero-tax-increase budget for consideration to our citizens at the upcoming public consultation remains a realistic and achievable goal,” he said. “The chairs and vice-chairs of each section, along with all of our department heads, have done a great job in delivering thoroughly reviewed and responsible budgets to the table.”

Councillors turned their attention last week to the library, museum, and parks and recreation capital and operating budgets. Other departments had been covered at the meeting a week prior.

Library CEO Cyndy Coté, museum curator Nicole Jackson and recreation manager Pat Harwood all pitched council their budgets, and all walked away with instructions to increase revenue in the upcoming fiscal year.

In order to bring the budget closer to the zero per cent goal, council requested the library increase its revenue by $3,000, while Jackson has been tasked with boosting revenue for educational programming by $1,000 and net sales at the museum gift shop by $860.

Harwood, commended for what council deemed to be an already “tight” budget, will nonetheless need to increase arena summer rentals by $2,000 and ice rentals by $5,000.

Prior to the Feb. 2 meeting, Penetanguishene residents had been looking at a $47.57 (2.6 per cent) tax increase – based partly on the budget as it had been crafted at that time, and partly on an average assessment increase to $203,946 from $195,340.

Since then, Schaefer noted, staff managed to reduce that figure to 0.43 per cent.

“There have also been some announcements and late-breaking information in terms of cuts. OPP (has) informed (us they’ve) settled on a three per cent increase for officers, which would mean a net $47,000 negative impact on the budget,” he said.

“For insurance, we have ground through the cumulative effects of gradually declining insurance premiums and have some money left for risk-management services we may need, but still managed to squeeze out a $29,000 reduction.”

Marshall noted council still faces some big challenges, and its focus from this point forward will be a strong review and financial road mapping in terms of capital spending for the next five years.

“We have some large projects upcoming, and we do need to properly plan and solidly position ourselves to deliver these projects.”

Council referred the 2011 operating budget and 2011-15 capital plan back to the finance and corporate services section for final review. It will be brought back to council Feb. 23. A public consultation session has also been scheduled for March 2 at 7 p.m.