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Kincardine ratepayers face 7.15% tax hike
By Liz Dadson

Kincardine Council

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Ratepayers in the Municipality of Kincardine will see their taxes increase by 7.15 per cent.

At the final budget meeting last night (March 23), Kincardine council cut some projects and added some others, to come up with an increase that equates to about $50 on the median (most common) residential assessment of $183,000.

Treasurer Brenda French updated council on the process to date, noting that following the March 8 budget meeting, the rate hike was sitting at eight per cent.

However, there was a $15,800 reduction in insurance premiums, an increase of $3,000 for volunteer appreciation night, an increase of $14,000 for arts centre operations, an additional $52,000 for work on the Huron Terrace bridge, and a loss of $25,000 in payment-in-lieu revenue because no buildings are under construction this year at the Bruce Nuclear site.

This jacked the rate hike up to 9.8 per cent, said French.

Councillor Marsha Leggett asked what the difference in assessment is between this year and last year.

French said she did not have that figure available because the budget is calculated on a percentage basis. The difference was just under one per cent, she said.

Councillor Ron Hewitt said he thought the money was all budgeted for the Huron Terrace bridge last year.

French said it was, but she believed the project was done and rolled the remaining funds into the year-end surplus or deficit figure. Since the municipality began at zero, it has to draw those funds out for that project again.

Council then began where it left off March 8, with the capital projects, the first one being the Davidson Centre addition.

Recreation director Karen Kieffer updated figures for the new gymnasium to be added to the facility. The total cost is now almost $3.5 million, with the federal and provincial governments each kicking in $1 million, and the municipality putting in the rest.

Of the extra $500,000, Bruce Power has donated $175,000 for the indoor walking track, Kincardine Minor Hockey has donated $50,000, Crabby Joe's has donated $8,000, and other businesses and individuals have donated $13,600. This leaves $389,390 to raise, said Kieffer, or else certain items have to be cut.

French said there is $55,671 coming from the tax rate for the project this year, and another $6,329 next year, for a total of $62,000.

Councillor Mike Leggett suggested council consider cleaning up the quagmire behind the Davidson Centre - paving that area and the larger parking lot over toward the water tower, since part of parking area will be taken up by the new gym.

Kieffer said paving behind the building and over toward the tower will cost about $550,000. "We want to get the building done in 2011, and then look at parking in 2012-13," she said.

The estimated cost for the addition has increased a bit, she said, but the project is going to tender and once those bids come in, the municipality will have to figure what items it will keep and what will be cut from the project.

Chief administrative officer John deRosenroll said the project's guiding group has been meeting and agreed that the 1,300 square metres of entranceway could be reduced, as can storage areas and some of the outside work in order to keep the project within budget. He said the tenders come in April 20, and a recommendation will come to council April 21.

Mike Leggett said he has difficulty supporting the project if it's going to be "half-assed."

"That building has been there for 36 years and we still have no paving at the back," he said. "This (project) is not a priority when we need roads, sewers and snowplows."

"I agree with Mike," said deputy mayor Laura Haight. "I don't want to cheapen this up. But this project is a huge priority. We need an indoor walking track and gym space. When you start cutting too much, you're not getting value for your money, and it looks like a cheap addition. If we need to, I'd like to see the entranceway phased in and not taken out."

"We need to do it right or don't bother doing it," said councillor Randy Roppel. "I agree with Laura. If you take away the front entrance, you're not going to have a gymnasium, you'll have a 'jam'nasium."

Haight suggested council look at divesting itself of certain assets, such as the old Westario Power building. 'We could sell it off and fund the gym, stabilize the tax rate and put money into the tax stabilization reserve," she said. "That building is a capital asset that has not been generating any revenue for the past two years. We kept it as a place for McKechnie Pharmacy but now the pharmacy is moving back to the clinic. So, let's sell the building."

Mayor Larry Kraemer said the municipality has made a commitment to provide space for a learning centre in that building, and suggested discussing that issue at another time.

As council considered further cuts to the gymnasium project, Haight again brought up selling the old Westario building.

 

 "Certain commitments have been made," said Kraemer, noting he would rather see post-secondary education in Kincardine than a new gymnasium.

He said a presentation about the learning centre was made at the economic development committee and will be brought to council in April.

Council agreed to wait until the tenders come in for the gymnasium project before deciding what, if anything, must be cut to keep it within budget.

Community grants
Under community grants, Hewitt asked why some groups that aren't from Kincardine received large grants, such as the Bruce County Museum which was given $5,000. He also questioned a grant going to the Grey-Bruce Regional Health Foundation which is in Owen Sound.

Haight said the museum conducts the "Museum-in-a-Box" program which circulates throughout the schools in Kincardine as well as other parts of the county.

Hewitt asked why funds weren't given to such groups as the Bruce Township Historical Society. Clerk Donna MacDougall said that group did not request money.

Council agreed not to send money to the Owen Sound hospital foundation, but direct it to the hospital foundation in Southampton.

As council wound down the capital budget, members agreed that they could handle a tax increase from five per cent up to nine per cent.

Kraemer said the municipality has not only lost $400,000 in provincial grant money, it has also taken on the $3-million medical clinic addition, with the first payment of $375,000 due this year.

"Once you remove those two items, which amount to a seven- to eight-per-cent increase in taxes," he said, "you're looking at only a one- to two-per-cent increase on the budget."

French said council has $12.5 million in discretionary reserves. Once it draws $3.6 million for this year, there are $8.9 million remaining which will make it more difficult for next year's budget.

"I'd like to put the annex (old post office) building up for sale," said councillor Guy Anderson.

Roppel said there are other municipal properties that could be sold to pay off the medical clinic addition and wipe out that debt entirely.

Staff then suggested council consider removing three capital projects: King Street sidewalk in Tiverton, $130,000; Saratoga Road at the south end of Kincardine, $60,000; and Mount Forest Avenue (leading up to the Women's House Serving Bruce and Grey shelter south of the hospital), $90,000.

Councillor Kenneth Craig said he could see council removing the Saratoga Road and Mount Forest Avenue projects, but not King Street because it's a safety issue with vehicles coming up onto the sidewalk there. The project would see curb and gutter installed to protect pedestrian from the traffic.

Hewitt said money could be drawn from the tourist booth reserve of $669,000 which is a lot of money just sitting there waiting for a building to be built.

Craig pointed out that $180,000 of the tourist booth reserve is the value of the two acres of municipal land at market rate.

Council took a brief recess for councillors to confer with department heads and other committee chairpersons.

When it reconvened, council agreed it should consider municipal properties to be sold, but that will be done at a separate meeting.

In the final analysis, council agreed to cut the Saratoga Road and Mount Forest Avenue projects, leaving a tax increase of 7.15 per cent.

Council also agreed to take $28,000 from the recreation reserve to put new siding on the Whitney Crawford Community Centre in Tiverton.

The budget will come to council for final approval in April.

In a separate issue, chief building official Michele Barr brought forward a request for pre-budget approval for the Inverhuron Flood Control project, in the amount of $12,500. The Saugeen Valley Conservation Authority needs council support to cover 50-per-cent of the $25,000 cost, and the deadline for confirmation is April 9.

Council granted pre-budget approval for the project.
 
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Tuesday, March 23, 2010