Meaford Treasurer David Kennedy presented council with the second draft of the 2010 Operating Budget, and gave councillors a first look at the proposed Water and Waste Water Budget at a special meeting of council on Wednesday February 10.
While the Capital Budget was not yet ready for presentation, Kennedy was able to offer a proposed water and waste water budget that calls for 2.5 percent increases across the board.
Kennedy reminded those in attendance that water and waste water facilities in Ontario are required to be self sustaining, and may not draw on tax revenues.
“Users of the system must pay for the system,” advised Kennedy.
During his extensive Operating Budget presentation, Kennedy offered a condensed course in municipal taxation during which he explained some of the complexities involved with establishing rates of taxation.
If the second draft of the Operating Budget were to move forward as is, Meaford property owners can expect a blended tax rate increase in the neighbourhood of five to six percent. Kennedy's estimates assume a County rate increase of 1.4 percent though the County has indicated that it is working toward adopting a budget with no increase for 2010.
Some councillors appeared nervous when Kennedy outlined proposals for nine new municipal hirings. Seven of the proposed positions would be staff hires, while the other two would be contract positions. The nine proposed positions would add $524,000 to the budget, though Kennedy made it clear that none of these positions are included in the proposed budget.
Kennedy wanted the information about the positions – which included a purchasing agent, an economic development officer, and a bylaw enforcement officer – brought before council for consideration, and he indicated that the senior management team is working on business cases to support the hirings. In many instances, according to Kennedy the hirings could result in net cost savings as there would be a reduction in the reliance on outside consultants who currently carry out the tasks associated with some of the proposed new positions.
“We are working on that (business cases), and you will have that information before you need to make a decision,” said Kennedy in answer to questions from council.
What was included in the proposed budget though, were staff wage increases in the amount of three percent plus applicable grid moves.
Kennedy defended the wage increases when questioned stating that the increase is appropriate given that municipal staff for many years had no wage increases at all and as a result staff wages have fallen behind comparator rates. That fact carries with it the risk of losing current staff to surrounding municipalities.
Councillors were generally positive with their comments and questions about the proposed budget, and several members of council expressed that they were pleased to be well ahead of the pace of last year's budget deliberations.
This coming Thursday February 18 there will be another special meeting of council to review the proposed capital budget. The meeting will be held in the council chamber beginning at 7:00 pm.
Prior to approving the 2010 budget public input meetings will be held, though there have not been any dates set for these meetings as of yet.
