Blue Box funding arbitration award helps County chop draft levy hike

 New Tecumseth Free Press Online 

Simcoe County council’s direction to its senior staff to keep the 2015 levy increase to one per cent over last year, has resulted in $1.389 million worth of adjustments to the draft. The impact will lower the previously projected two per cent average property tax hike on the upper tier’s portion of the bill.

The single largest factor wasn’t a cut, but rather a $450,000 revenue boost courtesy of a provincially arbitrated win announced in November in favour of AMO and the City of Toronto seeking $115,172,332 for 2014 from Stewardship Ontario. The municipalities argued SO had an obligation to fund 50 per cent of municipal blue box programs delivered by 230 municipalities. The ruling is a new benchmark and revenues for blue box operations will be adjusted upwards.

“The 2015 Solid Waste Management (SWM) operating budget included revenues from blue box funding of an anticipated $2,363,000,” according to the updated budget report included in the January 27th County council meeting. “With the known portion of the funding noted above being approximately $1,663,890 and an adjusted estimate for the remaining two payments in 2015, staff anticipates that the total blue box funding will now be approximately $3,100,000 or $738,000 in revenues over the 2015 draft budget. Of this, approximately $513,000 is a one-time benefit from the 2014 arbitration award. Included in the additional $738,000, staff anticipates there will be a base level funding increase of approximately $112,500 quarterly starting with the 3rd quarter of 2015. This figure will fluctuate based on program costs and market conditions across the province.”

Simcoe County taxpayers will benefit directly from reduced gas prices at the pumps,as projected savings of $250,000 in fuel costs, were struck from the levy. Additional growth of $165,000 in revised January numbers also factored.

There were also spending cuts including $170,000 in consulting; $87,000 defer hiring an Economic Development Officer; $47,000 in waste management advertising cuts; and $15,000 reduction in number of conferences and training days.

When the the 2015 draft budget was first presented to councillors in October, it projected average property tax hikes of $6.08 per $100,000 of assessment, which was a two per cent average increase over 2014. And the total levy was to increase by four per cent to raise approximately $144 million from taxes.

The County’s capital budget is estimated at $68.3 million, and work includes construction to start on the replacement of the Alliston Bridge on King Street (Cty Rd 15) and associated road improvements. Additionally, the next phase of Cty Rd 50 widening and improvements, and continued phases to Cty Rd 90.

In 2015 unfinanced development charges are proposed to increase by $17.4 million, resulting in a year end unfinanced development charges of $51 million. As a result of the shortfall, the County has to borrow $8.9 million in “short term loan” to bridge the gap.