New Tecumseth property tax average hike in under $60 in 2011

New Tecumseth Free Press Online March 8, 2011

New Tecumseth council approved a 2011 municipal budget last night that, combined with County and education levies, will increase the average property tax bill by $57.87 or 1.99 per cent on a residential home assessed at $283,477.

The budget requires a levy of $19,208,207, a 3.28 per cent increase over last year, to finance estimated expenditures in 2011. The 3.28 per cent is made up of 1.74 increase for policing costs and 1.54 per cent for Town operating and capital budgets.

For urban residents on municipal services, there’s also an increase to the base charge for water and wastewater from $1.54 to $1.58 per cubic meter, or 2.5 per cent, beginning April 1.

In a recorded vote requested by Ward 3 councillor Paul Whiteside, last night’s budget package was opposed by deputy mayor Rick Milne, and Ward 1 councillor Bob Marrs (Ward 5 councillor Richard Norcross was absent as he is out of the country).

Mr. Marrs has argued throughout the budget deliberations that he was opposed to sacrificing building up Town fleet and firefighting apparatus reserve accounts to keep taxation down.  

When the draft budget was first tabled, it included three options, including one that provided $862,000 in transfers to reserve, but it came with a 9.04 per cent levy increase; a second option split that in half, putting the levy hike at about five per cent, not including OPP. The last option, which the majority of council agreed to, eliminated transfers to the reserves for this year.

Last night, Mr. Marrs attempted to get at least $432,000 back in the budget for equipment reserves, that would have been raised by taxation.

“I don’t see going any less than that,” he said. “We have to raise the taxes whether we do it this year or next year. I don’t think we should put it off. Go to taxation, the money has to come from somewhere.”

There were no takers.

Ward 8 councillor Jim Stone, also moved to find $250,000 to replace a fire truck from the mill rate stablization fund. But, after finding no appetite from other councillors to tap that rainy day reserve, he suggested long term debenture. Also did not find support.

Among this year’s ‘big ticket’ capital projects: 

– $1.5 million (about $1 million debentured) is for the Road Upgrade Program that will include various road segments throughout the Town being upgraded; 

– More than $1.6 million for the road widening and reconstruction of Sir Fredrick Banting Road between Victoria Street and John W. Taylor to complete the project that was approved in 2010 (development driven); 

– Upgrades to the Alliston Wastewater Treatment Plant will be started with $738,000 set aside in the 2011 budget towards the $3 million project; and 

– $7.7 million for the Parsons Road reservoir expansion and associated watermains.

Development charges accounts will be overdrawn by about $11 million, including for water and wastewater upgrades in Tottenham required to accommodate the planned residential growth. It’s expected that front-ending agreements will be worked out with the development community in exchange for DC credits.

Also still to come is the long term debenture issue of more than $30 million for the regional wastewater treatment plant expansion. Currently there are insufficient DCs to service that looming debt.