BWG council cuts budget

By Jay Gutteridge BARRIE Advance Feb 16, 2011

Bradford West Gwillimbury council tinkered with the town’s budget during two special meetings, making a few cuts but no drastic changes.

Taxes will increase an estimated 1.23 per cent on a home valued at the town’s average of $318,020, should the budget remain unchanged.

That equates to an increase of $46.71, bringing the total tax bill for the home to $3,844.14.

The figures are estimates because the impact of Simcoe County’s budget on the tax rate is still unknown and Bradford West Gwillimbury/Innisfil police services board’s budget is still up for review.

Town council asked the police board to try to cut from its budget after the board presented a draft budget with a 6.75-per-cent increase over last year.

“I don’t think there’s much fat there, to be honest with you,” Mayor Doug White said of the police budget.

The town controls about 35 per cent of the total property tax levy, finance director Ian Goodfellow said. The rest comes from the county, police services board and education budgets.

The town’s portion of the tax levy is largely offset this year because growth means the tax burden is spread among more homes and businesses.

One of the major tax cuts planned is a decrease from $190 to $140 in the amount residents pay for solid waste services.

Unlike the rest of the tax levy, all residences pay the same for these services, regardless of the home’s assessment value.

Council also cut the amount budgeted for a part-time administrative assistant in the fire department from $38,000 to $23,000.

Mr. White suggested the cut, noting the hiring process for a new deputy chief is under way.

He said the deputy chief might make the additional administrative assistant hours unnecessary and the need for the extra hours could be reviewed in the 2012 budget process.

Council cut $46,190 budgeted for a new health and safety advisor position after human resources director Kelly Losak said the position wouldn’t be needed as early as originally thought.

The budget still includes money to hire many new employees, including positions to help run the new library and leisure centre.

Deputy Mayor Rob Keffer proposed cutting the amount budgeted for new staff and paying them less, saying the amount town staff is paid was an issue he heard during last fall’s election.

He said the town is one of the best places to work and it isn’t necessary to use wages to attract people.

“I say, with all due respect, you get what you pay for,” Ward 2 Councillor Del Crake said.“If you don’t want to pay, you don’t get the quality we have.”

Mr. Crake noted the budget town staff initially presented to council featured a tax increase of 1.43 per cent for the average residence, while other municipal councils had to do a lot of chopping from their budgets to get the figure that low.

He said the town must compete with municipalities in York and Durham regions, among other areas, when attracting employees.

The town has a process for determining what new positions are worth, Ms Losak said, noting the process takes into account what similar positions are paid within the town and in other municipalities.

Council made two other cuts from the budget, slashing $8,470 from the planning department’s budget for consulting fees and nearly $10,000 from the IT department’s budget for materials and supplies.

While several members of council looked for ways to cut the tax hike, Ward 5 Councillor Ron Simpson said the budget should be increased.

The budget includes $200,000 for rural hot mix road resurfacing this year.

That amount would cover about 2.5 kilometres of road, which isn’t enough to meet the needs of rural areas, Mr. Simpson said.

“When we’re finishing up budgeting … we have to look at a reasonable increase; 1.25 (per cent) is not reasonable,” he said, adding a 3-per-cent increase in the tax levy might be better.

Not investing now means council will need to increase taxes by a large amount in a future budget to get caught up, he said.

“This issue highlights the central challenge we have: everyone wants their road improved, but no one wants to pay,” Mr. White said.

“It’s absolutely impossible to meet both demands. We have to find a balance.”

The town’s engineering department plans to commission a roads needs study this year and that will give a clearer picture of what the needs are for future years, engineering services director Debbie Korolnek said.

Mr. Goodfellow reminded council the town needs financial support from the development community to meet its growth plans.

Provincial law states the town’s debt charges can’t exceed 25 per cent of its net revenues. The town would exceed that amount by 2014 if it had to pay for the growth itself, according to a document presented by Mr. Goodfellow.

“Don’t get wrapped up in the worst-case scenario, because this is not going to happen,” Mr. White said.

The town plans to sign early payment agreements with developers so development charges are collected in advance to help pay for new infrastructure, as has been the town’s practice in the past, Mr. White said.

The budget is scheduled to go back before council at its regular meeting March 15, at which point council could approve it.