New Tec starts 2011 budget talks

By Maija Hoggett Simcoe.com Jan 11, 2011
NEW TECUMSETH – There was a lot of discussion, but no decisions last week over how much New Tecumseth’s municipal tax increase will be this year.
Thursday night was council’s first chance to talk about the 2011 budget,

which was delivered to council members before Christmas to give them a chance to review the document.
The most vocal at last week’s meeting was the town’s former chief financial officer turned Ward 3 Coun. Paul Whiteside, who asked for a detailed breakdown of each department’s operating budget. Whiteside also said he’d like council to come in with an overall two-per-cent tax levy increase this year.
“It cannot be zero realistically,” said Whiteside.
Because of the Nottawasaga OPP contract that New Tecumseth agreed to in 2007, there will be at least a 1.74 per cent increase this year.
The budget package for the new council included three tax levy increase options; a 9.04 per cent, 6.66 per cent or 4.28 per cent hike. The lower increase means that less money would be transferred to reserves and fewer vehicles would be replaced this year.
If council were to go with option one, a 9.04 per cent increase, the owner of the average $283,477 home would be paying an additional $123.99 on their municipal taxes. With the estimated Simcoe County and education portion factored in, the overall tax increase for 2011 could be $154.48.
Water and wastewater rates are also increasing.
The proposed increase would see the rates rise from $1.54 per cubic metre to $1.58 per cubic metre for both water and wastewater rates.
New Tecumseth CAO Terri Caron said the budget prepared for council is lean and was created “to maintain the level of service as efficiently as possible.”
The document, however, doesn’t allow for a lot of transfers to reserve accounts. To achieve the 4.28 per cent increase, there is no transfer to the fleet and fire replacement reserves at all.
“There’s really not a lot of buffering for any unforeseen issues and we really don’t have a lot of reserves,” said Caron, adding that provincial auditors have deemed the town’s debt load well within the its limits.
While Caron said town staff has scoured the budget looking for efficiencies, she said they will do whatever council asks. For examples of cost-savings, she said the town could stop its grants program to community groups, adjust hours of service or raise user fees. She said council needs to give guidance to staff on where and what types of things could be reduced.
Ward 4 Coun. Fran Sainsbury said the town is going to have to get tougher.
Sainsbury noted, for example, that the town gives the Nottawasaga Valley Conservation Authority (NVCA) money for trees, but questioned where the trees are being planted. She asked if the town checks its bridges every year or every two years because that’s what is allowed by the province, and also inquired if the town is using “gold-plated” things just to make people happy.
The economic recession over the past couple of years is taking its toll on the town’s resources.
For the past two years, town staff have taken eight unpaid days to help reduce the budget. Those unpaid days aren’t being taken this year, as the budget document said the practice isn’t sustainable and negatively impacts recruitment efforts.
Projections for building permits are also down.
In 2010, the budget projected $700,000 in revenue from building permits. In November, however, the town had only brought in $290,446 from the permits. As such, the 2011 projection for building permits is $566,000.
Fewer site plan and subdivision applications are anticipated as well.
The budget accounts for $15,000 revenue in site plan applications and $75,000 in subdivision applications. In 2010, the town brought in $2,746 in site plan applications (it had projected $25,000) and $83,115 in subdivision applications ($100,000 was the projection).
The budgets for the two conservation authorities New Tecumseth pays into are increasing.
The NVCA is looking for an additional $8,945, which would have the town contributing $224,871 (4.1 per cent more than last year).
The Lake Simcoe Region Conservation Authority is asking for an extra $923 and has the town giving it $17,487 in total.
Projections for revenue at the town’s recreation facilities is also lower than in previous years.
The ice pad at the Tottenham Community and Fitness Centre is expected to bring in $231,500. As of November 2010, the Tottenham rink had made $152,746, while the overall budget in 2010 predicted $261,000 in revenue.
The New Tecumseth Recreation Complex’s revenue for 2011 is projected at $888,500. As of November 2010, the multi-use facility, which includes two ice pads and an indoor soccer pitch, had brought in $631,025 in revenue, well below the projected revenue of just over $1 million.
The public will get its chance to have a say on the 2011 budget this Wednesday, Jan. 12. A public budget meeting will be held in council chambers, at the municipal building at 10 Wellington St. E., Alliston, starting at 7 p.m.
The budget package is available online at www.town.newtecumseth.on.ca.