Proposed 1.85% tax increase discussed at Feb. 9 public meeting, spurred by reduction of provincial grant
By Gisele Winton Sarvis Barrie Examiner
“We are one of the fortunate municipalities where costs are lower,” explained Clearview Treasurer Edward Henley in his presentation at the public budget meeting Monday night, Feb. 9 in council chambers.
The proposed tax increase of 1.85% will cost the average homeowner another $52 per year, he said. That’s based on an assessed property value of approximately $256,000.
Part of the tax increase is due to the further reduction of the Ontario grant for infrastructure to small rural municipalities. Since topping out at approximately $1.5 million in 2012, the Ontario Municipal Partnership Grant (OMPF) has decreased annually to a grant of about $1 million for 2015.
Robert Charlton, chair of the Clearview Public Library Board, was one of 10 citizens to attend the meeting. He said a new library is needed.
He was not distressed by staff’s decision to shut down the bookmobile program, saving money by not purchasing a vehicle or having staff, or by council’s delaying adding library staff, but he was upset that council postponed its plan to increase the library reserve by $25,000 until 2016. The reserve is currently $75,000.
“Altering the structure of the library contribution put this (building) project in jeopardy,” he said.
Putting a small amount of money each year into the reserve ensures that a tax increase later is not needed. In addition, a higher reserve means that a lower loan will be needed for the construction project. A lower loan translates into lower payments.
Charlton said the time for reserve funds is now. Next year there will be higher policing costs and a lower OMPF grant.
“If we can’t proceed with $25,000 this year, what will happen next year?” he asked.
Charlton said council’s decision to not accept a budget increase higher than 1.95% this year, might mean a 3% or 4% increase next year and said he fears that reserve funds will suffer.
Another man questioned the township hiring a communications officer as well as fire department vehicle replacement in light of the decreasing provincial grants.
“We know we are going to get less next year,” he said regarding the OMPF grant reduction “The Ontario Government is in trouble.”
He suggested selling assets and putting funds toward library reserves to build a new library in the future.
Fire chief Colin Shewell replied that he is mandated to replace aging equipment adding that citizens don’t want a 20-year-old vehicle responding to a fire emergency.
Another woman questioned the township’s reserve funds, asking where they are held and if they accumulate interest.
Henley responded by saying that only since 2011 has money (between 1% and 2 % annually) been put aside for reserves and capital spending. For 2015, it’s 1.3%.
Reserves are needed to fund repair and replacement of roads, bridges, libraries, arenas, park and arena equipment and snow plows and more.
Some of the water pipes in Stayner are about 100 years old and the township has 75 bridges to look after, most of which were constructed in the 1960s and 1970s, said Henley.
The township will have approximately $2.6 million in reserves by the end of 2015, including approximately $1 million allocated for roads and $350,000 for fire vehicles.
Total municipal taxation brings in almost $23 million for the operating budget. The total municipal budget of $61.3 million also includes the $38.4 capital budget where funds come from other sources including fees.
Comments from the public will be incorporated into the budget making process, said Henley. The next step is the final budget workshop for council and senior staff on March 2 at 12:30 p.m. Council is expected to pass the budget at the Mar. 2, 5:30 p.m. council meeting. The official tax bylaw is expected to be approved at the April/May 5:30 p.m. council meeting.
Full details of the budget are available online at clearview.ca or on public display in the Administration Centre at 217 Gideon St. in Stayner Monday to Friday between 8:30 a.m. and 4:30 p.m.
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