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Kincardine council approves 2011 budget with 12.5% rate hike By Liz Dadson |
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After defeating a 12-per-cent rate hike last month, Kincardine council has now approved its 2011 budget with an even higher tax rate increase of 12.5-per-cent. At a special budget meeting last night (May 9), council members pondered the situation and basically returned to their original camps. The only difference between last night and April 13 was that all members of council were present for the final vote last night, including councillor Candy Hewitt who was absent for the April 13 meeting but was in favour of the 12-per-cent rate hike. In committee-of-the-whole last night, mayor Larry Kraemer said there was no point in council revisiting the operating budget. Chief administrative officer John deRosenroll gave a quick overview of what had happened to this point, noting staff had prepared a four-year financial recovery plan with a three-per-cent increase in the tax rate. During four Monday evenings in March, council debated the numbers and at the final meeting March 28, decided to add several items, such as engineering for Huron Ridge reconstruction at $105,000, and transfers to reserves, bringing the rate hike up to 12.08 per cent. Deputy mayor Anne Eadie said she was fine with the work done up to the middle of that final meeting, and could support a five-per-cent increase, but not 12 per cent. "If we need money put into reserves, what ones need money?" she asked. "On the whole, our reserves are not looking too bad, as long as we are not drawing them down to pay for operating expenses." Treasurer Brenda French said that the Bruce County levy increased slightly as did the education tax. So, with the 12-per-cent increase for the municipality, and factoring in the growth in assessment, the municipal tax rate actual went down. However, assessments have gone up, so the overall tax increase would be 5.82 per cent, she said. A homeowner with a median assessment of $196,500, would now pay $2,083.50 in taxes, said French. That is an overall increase of about $115. "That depends on your phased-in assessment increase," said Eadie. "Some people will be paying seven- to nine-per-cent more. And along the lakeshore, it tends to be higher still." Councillor Maureen Couture said council should re-introduce the original motion from April 13 and vote on it. "That original vote failed due to numbers," she said. "However, if procedurally we have to introduce something new, that's fine." Councillor Randy Roppel said he could live with a five-per-cent increase but cautioned council that not everyone in the municipality works at the Bruce Nuclear plant. "I'm offended by taxation that is set by the wages down there," he said. He wants council to sit down and put all the reserves and reserve funds on the table and determine what is necessary and what is not. Mayor Larry Kraemer insisted the higher rate increase is required to maintain operating expenses. However, Eadie said the municipality should consider the upcoming organizational review and service delivery review and start living within its means. Councillor Ron Coristine said there is simply not enough financial information to make an informed decision. Some figures are based on old assessment numbers, while others are based on new assessment. "We're asking the taxpayers to pay more money when we don't know where it's going," he said. "I want to be clear about it." "We are facing a tough decision," said Couture. "Nobody wants to increase taxes by double-digits. But we are facing increases in our own costs, including gas prices and wages. I could support a 10-per-cent increase in the tax rate, but I would prefer 12-per-cent." Councillor Jacqueline Faubert said a five-per-cent increase is not enough, and councillor Mike Leggett agreed, saying the municipality should be starting with an eight-per-cent increase built into its annual budget to cover operating costs.
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 "Convince me that there is one reserve that needs money," said Eadie. "The tax mitigation reserve," said Couture. "It lasted only five years before it was gone." "How about recreation reserves for Inverhuron, Armow, Bervie and Glammis?" said councillor Kenneth Craig. "We each have a perceived number in our head for the tax rate increase. Mine is 12 per cent. I vote for a 12-per-cent increase and move on." Eadie said that while the municipality has extensive assets, with an annual depreciation of $4-million, it should be looking at its assets and deciding if it can afford all of them."We pay to have a police officer at the high school in Kincardine," she said. "Maybe we can't be doing all of these extras; put that money toward increasing gas costs instead. These are tough decisions we have to make." "Keep in mind that the ratepayers demand these services, such as the officer in the school," said Couture. "They expect the amenities we provide." Eadie proposed a seven-per-cent increase which was not approved. After a brief break, council reconvened and Hewitt put forward a motion that the tax rate be increased by 12.5-per-cent, and council agreed. Back in council session, in a recorded vote, the 12.5-per-cent increase was approved, 6-3, with Kraemer, Craig, Faubert, Hewitt, Leggett and Couture in favour, and Eadie, Roppel and Coristine against. Following the meeting, French noted that Kincardine used to have 85 reserves and reserve funds, but after a review by the previous council, that number was reduced to 50. There is currently $16-million in reserves and reserve funds, she said. Council also discussed an issue related to the budget. The recovery plan called for centralized reception and perhaps implementation of an automated answering service. However, council shot down that idea and decided there should be a person at the front desk to greet people and answer the phone. A casual worker will be brought in to cover a planned leave at the end of the year then, said deRosenroll. To discuss personnel details, council moved into closed session.Scrolling stops when you move your mouse inside the scroll area. You can click on the ads for more
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