Huron-Kinloss could be looking at 5-6% tax increase this year
By Liz Dadson

Huron-Kinloss Council

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It will be up to the mayor of Huron-Kinloss to decide the fate of the tax increase this year.
Deputy mayor Wilfred Gambled chaired the budget meeting Monday night (March 30) in the absence of mayor Mitch Twolan, and council was split, 3-3, on the two options provided by treasurer Jodi MacArthur.

Originally, MacArthur had three options, beginning with a 4.9% increase, then a 6.3% increase and a 7.7% increase, depending on how much council wanted to cut from the budget.

Councillor Jim Hanna said the 7.7% increase was way too much and council agreed, so the third option was not even considered. Debate then centred on the lower of the two, with councillor Don Murray suggesting the numbers be changed to keep more money in the budget for road work which is vital to the township. MacArthur reworked the numbers and came up with a 5.2% increase for the first option.

She explained that while the total to be raised from taxation this year has increased by over 10%, the average residential assessment has also increased, by 7.7%, meaning the total residential tax rate has actually gone down by two per cent, leaving the overall tax rate of 5.2%.

The average house assessed at $200,000 had a total tax bill of $2,332.65 in 2008, said MacArthur. This year, that same house is valued at $215,420 and the tax bill will be $2,453.48, an increase of about $120. That includes the Bruce County levy and the education tax. For the municipal portion, the increase is about $70.

During discussion, council agreed to go ahead with a software program to analyze and optimize the energy consumption in municipal buildings, as outlined by facilities and recreation director Mike Fair. The program will set up each building as a model and any proposed retrofit or upgrade can be analyzed to determine if there are cost savings and whether it is worthwhile to do the project, said Fair.

Councillor Don Murray compared it to an energy audit which could determine, for example, if there is a three- to five-year payback for installing new lights in all the municipal buildings. A summer student would be hired to set up the program.

Council also accepted the $8,000 in the budget for Phase 2 renovations to the Lucknow Town Hall. Staff said a Trillium grant is being applied for, and if it is not successful, the project would be deferred.
The township initially approved giving $500 to the Grey Bruce Agriculture and Culinary Association, and $553 to the Grey Bruce Cultural Network but later cut those from the budget.

Discussion turned to the septic re-inspection program and the fee landowners pay for that service. Councillor Anne Eadie said that fee should be reduced because not as much education is required now as the program enters its third year. However, the program is in the middle of the cycle for this year so council agreed to review it in the fall before the following year. "We should find a way to make this program more cost-effective," said Eadie.

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31/03/2009 08:59 PM


The township's share of the Huron Road reconstruction project is almost $1 million, with grant funding through the Building Canada Fund. MacArthur said funds have been allocated to the 2009 budget to complete the work to acquire the easements and restoration of Jardine Creek, with construction to begin in 2010. She said the project could take up to three years to complete and recommended council pay for it over three years rather than borrowing all the money and committing to a 10-year repayment. Council agreed.

"If there is money coming from the governments for infrastructure projects, we are going to have to find the money to finance them, come hell or high water," said Hanna, during discussion of capital projects. "We have to improve the infrastructure in this municipality. The debt is going to be incurred (by the federal and provincial governments) whether we take advantage of it or not. Those who are well-prepared and ready with their projects - and we are one of them - are going to be in good shape."

He suggested the township meet with Ashfield-Colborne-Wawanosh and discuss fixing the roof of the Lucknow Arena which could be one of these projects. "Wait until the recreation board has the drawings for the arena roof," said Murray.

Council wrapped up its budget meeting by concentrating on the two options for a tax increase.
Hanna stuck with the higher rate (Option B), saying the township has done an excellent job in maintaining services, equipment and buildings. "It's easy to have a zero-per-cent budget," he said. "You just don't fix anything. I go with Option B (6.3%) which addresses the business we're doing here."

"My concern is that this is based on an average residential assessment," said Eadie. "There are people with increased assessments and they're going to be hit with an increase each year for the next four years, on top of a tax increase."

Administrator Mary Rose Walden told council to consider what it wants to cut, then. "You say yes to all of these outside agencies and then at budget time you want to cut. You have to find a balance, you can't keep cutting the roads budget."

Murray suggested dropping the $34,000 sent to Kincardine for doctor recruitment next year. "Perhaps we should look after our own municipality first," he said.
"I understand what you're saying," said Hanna, "but we need to keep what doctors we have."

"I have trouble with us going over a 5% increase," said Eadie. "That's just an average, so there will be people facing a 10% increase in taxes."

Murray also pointed out that many residents of Huron-Kinloss are facing job losses, with the closure of the Volvo plant in Goderich and cutbacks at the Wescast plant in Wingham.
"Unless they have a job at Bruce Power, a lot of people are going to be in trouble," said Eadie.

Council agreed to have the treasurer bring forward the two options - a 5.2% or 6.3% increase - at the general committee meeting April 6 for a decision and then the tax bylaw can come to council for final approval April 20.


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