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New Tec says its saving money in 2010

In New Tecumseth
Jul 10th, 2010

By Maija Hoggett Simcoe.com July 9 2010
So far this year, New Tecumseth is predicting saving money in 2010.
Using New Tecumseth’s cost to operate up to May 31, town staff is predicting $135,000 in savings this year. The budget projections, according to the report, are very preliminary and are refined as the year progresses. Budget reviews are also completed at the end of August and October.
In the town’s first review of the 2010 budget, the building department is anticipating being down $100,000 in construction permits.
The police budget is working in the town’s favour too. The report anticipates a favourable difference of $237,325 in the OPP contract reconciliation.
A mild winter also means an extra $100,000 in the sand and salt budget. The report said staff will ask council later this year, however, to transfer the savings into a reserve account to make up for changes in the usage and cost of sand and salt each year.
Paul Whiteside, the town’s former manager of finance who is now running for council in Ward 3, has concerns with money being put into reserve. He said this year’s budget was trying and next year’s will be very difficult as well. Reserve accounts, said Whiteside, are important for a municipality, but “only appropriate when conditions are such.”
Any cost savings, said Whiteside, should be used towards the mil rate stabilization fund (which council often uses to offset tax increases on residents) or be flowed to the bottom line.

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