New Tecumseth Free Press

For the first time since New Tecumseth was created by amalgamation in 1991, council has approved two municipal budgets in the same calendar year, the most recent last night will add an average $113.57 or 7.05 per cent to property taxes on a home with a market value assessment of $313,324.

It’s also the single largest tax increase of the four budgets struck during this term of council. The 2013 increase was an average of six per cent.

The 2014 budget proposes to spend approximately $32.3 million, but will require just over $24 million in taxes to finance it. Additionally, nearly $6 million will be added to long term debt pushing past $60 million by Dec. 31, 2014 (excluding interest).

Amendments to the final draft made last night did not change the tax implications. But did alter the road work schedule. Councillors agreed last night to utilize $546,700 from the gas tax reserve to pay for road resurfacing on the 6th Line between 10 and 15 SR. That came at the expense of previously approved 15 SR between the 6th and 8th Line, which had been earmarked for the gas tax funds.

Water and sewer bills will also increase 4.6 per cent starting April 1, 2014, which follows the five per cent increase in 2013.

Ward 8 councillor Jim Stone’s suggestion that the Town defer repaying itself back the $190,000 owed to the Hydro Electric sale reserve fund by one year – borrowed to finance the Tottenham community centre expansion – to lower the municipal tax increase, failed to win council support.

Budget approval expected tonight, taxes, water, sewer rates to climb

New Tecumseth Free Press December 16, 2013 http://www.madhunt.com/budget-final-preview-20131216.html

Pending any further significant changes to the proposed 2014 municipal budget, councillors are scheduled to vote on the package which increases the average local share of property taxes by $113.57 or 7.05 per cent more than 2013, on a home with a market value assessment of $313,324.

When Simcoe County’s 1.87 per cent hike, and a 4.17 per cent reduction in education taxes, the total average tax bill will climb to $3,319.26, an increase of 126.83 or 3.97 per cent,

If approved tonight in a special meeting of council, it will mark the first time New Tecumseth has passed two budgets in the same calendar year.

The 2014 budget proposes to raise $24.4 million in taxes, to cover the shortfall for approximately $32 million in expenditures. Among the capital projects proposed are:

• Tottenham Wastewater Treatment Plant
• Mill Street Sanitary Pumping Station & related works
• Alliston Wastewater Treatment Plant upgrades
• New Tecumseth & Adjala- Tosorontio Town line (9th to 11th line) road works
• 15th Sideroad (6th to the 8th Line) road works
• New Tecumseth Recreation Centre- 54+ Facility construction
• Trail Development
• Self Propelled Equipment & Fleet replacements;
• and Fire Station #3 Expansion – Tottenham

The budget also will add about $5.9 million in long term debentures including:

• 2014 Road Upgrade program- $2.4 million
• Fire Vehicles (Fire Tanker and Rescue Truck)- $300,000
• Alliston WWTP upgrades – $3.2 million – (development charge reserves that are available will be used prior to the issuance of long-term debt).

Total accumulated Post-employment benefit liability for the Town as at December 31, 2012 was $4,147,879. The preliminary estimated net liability for 2013 is approximately $3.5 million with the 2014 estimate not available, according to the budget documents.

The budget package also includes a provision to resume COLA increases to Council remunerations starting in 2014.

Additionally, water and wastewater rates are poised to increase by 4.6 per cent . Starting April 1, 2014, residential rates will climb to 1.82 per cubic metre for water, and wastewater ($3.64 combined rate).

A couple of changes that could occur tonight include a request by residents of the 6th Line to have their road paved, as well a request by Matthews House Hospice for $2,300 per month to help cover the rent/operating costs of one of their rental housing units at Kingsmere. The report on tonight’s agenda seeks council direction. Matthews House currently receives a $2,000 annual grant.

 Council warned about shrinking reserves, then dip into reserves

Letter to the New Tecumseth Free Press December 16, 2013

At tonight’s Committee of the Whole Meeting, it is proposed to vote on the 2014 Budget.

On reading, the covering report to council it is hard to get a sense that our council, in the majority of cases, has a hearing deficit or plain lack of common sense.

With great praise recently, the Town CAO introduced Alister Byrne who made a very simple and clear presentation on the subject of financial sustainability.

There were about three components that Mr. Byrne addressed prior to Council having an all-day working session the following Saturday. It was here that our council established as a direct consequence of the presentation on financial sustainability their intention to create a special reserve fund, the Capital Reserve Replacement Fund.

They agreed to set aside all of one per cent of the taxes, about $247,000, to the new reserve fund. This would be a long-term projects providing for the future onslaught of extensive retro fitting required for the Town’s aging water and wastewater pipes, roads and parks.

Well blow me away, but does this Council, at a subsequent working session, not just go and spend the very same $247,000 in order to reduce the impact of Capital projects on the 2014 budget.

Wow. That is what passes for “long term planning by this council.

Gordon McInnes