Penetanguishene council talks budget over with public

By GISELE WINTON SARVIS Midland Free Press December 7, 2012 

PENETANGUISHENE — Council and town staff who have been toiling over the 2013 budget opened the books to the public at a meeting held Nov. 28 as part of establishing the tax rate.

At issue is the number of projects the town can undertake depending on where the tax rate sits when the budget is passed.

“We have a capital increase of $253,000. We need to increase the tax rate or carve down the capital projects,” said Carrie Robilliard, deputy treasurer.

Town staff and council have tentatively set the capital budget from the property tax base at $1 million. With this amount and a tax increase of about 3.5%, the town’s books will be balanced.

If the tax increase is lowered to 2% then there will be a deficit of about $120,000.

However, this third draft of the budget has lowered that deficit considerably since it was originally forecast at about $275,000.

“We are showing a 9.3% reduction in the administration total,” said Robillard.

The total for administration wages and salaries comes in at about $950,000 or the fourth largest expenditure.

Standing out was a 53% increase in ‘corporate miscellany’ that Robilliard said comes from a large decrease in the transfer of funds from the province through the Ontario Municipal Partnership Fund, the downturn in investment income and the need for capital projects.

The police budget is only showing a .2 % increase for 2013, but this comes after about a $250,000 increase for 2012 and the knowledge that police costs will rise significantly in 2014 when contracts are due for renewal.

The fire protection total is up 5.6% or $51,000 from last year.

Roadway work costs have been set down $41,000 or 3.3%. But, public works is up 4.8% or $38,000, so they basically cancel each other out, said Robilliard.

After a presentation made by Robilliard, the public was able to ask questions about the town’s capital expenditures.

Few people in the audience came forward; one woman said after the meeting she didn’t go up because she’d only spent five minutes reading over the budget and didn’t know enough to suggest cuts.

Someone questioned the need for a $60,000 washroom for the Penetanguishene Memorial Community Centre. Director of Parks and Recreation Pat Harwood said the men’s washroom is original, whereas the women’s washroom was renovated in 2006 and the washroom needs to be made wheelchair accessible.

“There will be new faucets, sinks and floors. That will be a brand new washroom,” said Pat Harwood, director of parks and recreation.

While about $1 million of the capital budget comes from the estimated $8 million in collected taxes, the actual capital budget is much higher, sitting at about $20 million. Most of the capital budget is funded through utility rates and subsidies.

The majority of the capital budget is a sewage treatment plant that will cost $16 million.

“That’s the major project we have going right now; $10.7 million comes from the Canada Fund Grant, $400,000 from sewage bills and the rest from debt financing,” said Brian Murray, director of public works. The upgrade to the sewage treatment plant began in 2011 and it’s two-year project, he added.

There was a special council meeting regarding the budget yesterday; council may adopt the final draft of the budget at the Dec. 12 council meeting.