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Huron-Kinloss council had its first round of budget talks
Feb. 9, knowing it has a lot of work to do to bring in a
reasonable tax increase for 2009.
Treasurer Jodi MacArthur explained that the township must raise
$3,661,726.48 for the proposed $10-million budget. Of the grand
total, just over $6 million is for operating expenses, while
almost $4 million is for capital projects. As the budget stands,
the proposed tax increase would be 10.63 per cent, said
MacArthur.
While the township had a $3,660.80 surplus from 2008, the roads
maintenance department was over-budget by $150,000, stated a
staff report. Fortunately, other departments had a surplus which
helped compensate for the over-expenditure.
As of Feb. 9, the township did not know what the policing
reconciliation figure would be, nor was it sure if it would
receive a government grant through the Building Canada Fund.
Saturday (Feb. 14), the township received the $1.8 million from
the federal and provincial governments to move forward with
reconstruction of Huron Road in Point Clark.
At the budget meeting, the staff report indicated that over the
past couple of years, council has added operating expenses, such
as physician recruitment and lakeshore environmental, at the
expense of capital projects. "Reserves are reaching low levels,"
the report said. "By the end of 2009, reserve balances will be
only $823,000, with $468,600 of that dedicated to working
capital."
It pointed out that in the past two years, council has cut
almost $500,000 in capital projects out of the budget.
As council mulled over operating expenses, staff requested
direction on specific priorities for programs and capital
projects. Also, once council has established a targeted tax
rate, staff will review budgets and make recommendations to
reach that goal.
First off the mark was bylaw enforcement with $48,900 on the tax
rate. Councillor Anne Eadie suggested it be cut by $3,000.
"How do we do that? We need some direction from council," said
administrator Mary Rose Walden. "Do we lay off people? Do we
look at the advertising budget? What's the bottom line?"
Eadie suggested paring it back to about $41,000 or $42,000. (next column)
18/02/2009 07:11 PM
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Policing is another big expense at $793,114. However,
MacArthur said that's simply the number given by the South Bruce
OPP.
Doctor recruitment will cost $34,069. "That's something we
shouldn't have to spend a dime on," said councillor Jim Hanna.
Road maintenance is at $1.327 million, and public works director
Hugh Nichol said a big portion of the cost is fixing equipment.
"I thought we were trying to get a fleet that was more
reliable," said Hanna.
"Certain equipment is high maintenance, such as the bulldozer
and the street sweeper," said Nichol.
"Or you could have a unit that's only four years old but the
motor blows," said councillor Don Murray. "The graders each have
10,000 hours on them."
"We have too many gravel roads," said Hanna.
"We had two major repairs last year," said Nichol. "Snowplowing
was really high last year. We had a bad February and then the
snow started in November when it usually doesn't come until
December." Because of that early snow, a lot of areas did not
have the ditches cleared, he said.
Lakeshore environmental puts $74,000 on the tax rate, but
facilities and recreation director Mike Fair said a lot of that
is for algae clean-up on the beach. "We think we can do things a
little differently this year to reduce the cost, but it's all
dependent on how much algae there is along the lakeshore," he
said.
"You never know where it's going to end up," agreed Eadie.
Council agreed to have chief building official Matt Farrell do a
review of building and planning fees to help cover the shortfall
of $31,750 in the building inspection budget.
"Maybe we'll get more windmills this year," said councillor Jeff
Elliott.
"They can put them around your house," quipped Hanna.
The major component in the capital budget is roadwork, to the
tune of $2.68 million, with $1.58 million on the tax rate.
Another big ticket item is equipment, at $246,000, with $197,076
on the tax rate. Other projects include $60,000 for promotion
and development, $56,200 for the Huron Landfill, $70,977.50 for
general recreation and parks, $22,500 for the Ripley-Huron
Community Centre, and $55,300 for planning administration. There
are water and sewer projects but those are all covered by user
fees.
MacArthur said the average residential assessment has gone up
7.7 per cent. The budget, as presented, is based on last year's
tax rate.
Following this budget meeting, staff will work with the figures
and bring recommendations to council at the next round of talks
scheduled for next month.
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