BWG Council news: more on the budget

By Miriam King Bradford Times Feb 24 2011

The 2011 budget includes a $2 million line item for the conversion of the old library on Holland Court into a Family Health Care Centre – even though the Province did not approve the municipality for a Family Health Team.

Councillor James Leduc argued that the item should be dropped from the 2011 budget. “That’s not a strategic priority, so pull that money,” said Councillor James Leduc, in a Special Meeting of Council on February 11.Mayor Doug White urged Council to leave the item in the budget, at least until the end of the year. “This is an election year. We were told previously there could be a second wave” of health team announcements, White said, pointing out that the $2 million is shown as coming from long term debt, and the Town won’t borrow the money unless the project is approved.

“The $2 million doesn’t really exist until we borrow it… so I’m suggesting we stay the course,” said Councillor Gary Lamb.

In a show of hands, most Councillors indicated that they want “to continue to investigate converting the library into a health centre.” Only Councillor James Leduc voted against.

Councillor Ron Simpson noted that a health centre was mentioned in more than one election campaign. “We’ve got to follow through on our election promise,” he said. “I hope the Liberal government wakes up. The health centre is needed.”

Councillor Peter Dykie Jr. agreed, suggesting that the $2 million be left in, until Council determines what should be done with the old library. “Leasing it, selling it, using it as Administration, using it as a health centre… There are so many options we have to discuss. We’re going to have a lot of work… to make the right decision for the taxpayer.”

But Leduc argued that if the item is left in the budget, “the perception to the public is that (the health centre) is coming. I don’t want the public to believe it’s going to come… In the end, I don’t see the government making any any changes. This is a PC riding.”

Mayor White disagreed. “The message it sends to the public is that we still think it’s important,” noting “not a cent gets spent,” unless the Province supports it.

Warning about the Debt Load

BWG Capital expenditures in 2011 total $61.44 million – including $25.68 million for the Leisure Centre, $4 million for the Library, $13.95 million for roads, $4.41 million for Waste water, and $12.63 million for water.

Funding sources include $22.25 million from Development Charges Reserves, $8.18 million from DC Reserve borrowing, $5.439 million from Discretionary Reserves, $2.17 million from other reserves, $4.067 million from “Other Debt”, $14.646 million from grants, and $4.24 million from “Other”, including donations.

Only $393,000 will come from taxes, and only $55,000 from user rates.

In going over the proposed 2011 Capital expenditures, Treasurer Ian Goodfellow underlined the importance of continuing to work with the development community to front-end or pre-pay growth-related infrastructure.

In fact, he noted, planned capital expenditures for infrastructure projects are “very significant over the next 5 year period” – and without financial support from the developers, the Town of Bradford West Gwillimbury will exceed the 25%-of-revenues debt cap set by the Province.

The 2011debt load is 11.7%. Without pre-payment and upfronting by developers for infrastructure to service the Official Plan Amendment 15 lands along Hwy. 400 and the OPA 16 lands (Bond Head Settlement Area), the Town’s debt would be 37.1% in 2014, 44.7% in 2015, and 50.5% in 2016, “and we won’t be going back down,” said Goodfellow.

He explained that numbers present “the worst case scenario – very conservative,” should the Town fail to get an agreement with the involved development community.

Goodfellow noted that the bulk of the money is shown as coming from Development Charges, while the contribution from taxes “is peanuts.” The problem is, “we don’t have DC money now.”