At a special meeting of council on Thursday March 11, Meaford Council determined that they are ready to take the proposed 2010 municipal budget to the public in order to seek thoughts and input from local ratepayers.
The proposed Operating Budget includes an increase of nearly $1.5 million in expenditures over the 2009 Operating Budget, and requires an additional $1 million to be raised through taxation.
As a result municipal property tax rates will increase by 11.59 percent which when combined with the rate changes for County and Education taxes, will result in a blended, overall tax in crease of 4.05 percent for urban Meaford, 4.99 percent in the Sydenham ward, and 4.98 percent in the St. Vincent ward.
Meaford Treasurer David Kennedy told members of council that the savings realized from the recently announced reduction in the County tax rate have been used to increase funds allocated toward deficit reduction to a total of $390,000 for 2010.
“This could result in $600–700,000 in deficit reduction next year,” said Kennedy.
The proposed 2010 Operating Budget falls in line with the five year plan developed during the 2009 budget process that laid the groundwork for pulling the municipality out of financial trouble, and paying down more than $3 million in accumulated deficits. The plan called for annual blended tax rate increases of five percent for five years.
Debate amongst members of council was stirred with regard to the Capital side of the proposed budget. Kennedy presented to council a listing of proposed capital projects to be completed in 2010 amounting to $2.1 million of which $1.6 million would be funded through grants, development charges, federal gas tax revenues and reserves. The remaining $468,500 would be funded through long term debt.
Included in the list of proposed capital projects are some $780,000 in municipal road repairs, $100,000 in storm management, $180,000 in harbour repairs and upgrades, and $41,000 for exterior signage and stage access windows at Meaford Hall.
Major proposed purchases on the list include three pick-up trucks at a cost of $80,000, a new tandem plow truck for $250,000, replacement of a Fire Department tanker truck for $200,000, and a bylaw enforcement vehicle costing $35,000.
Also on that list was a multi-passenger vehicle described by Director of Operations Stephen Vokes as a minivan. This vehicle was the target of much questioning by members of council who were trying to determine what the vehicle would be used for, and why it is necessary.
Vokes explained that the municipality used to have such a vehicle, and that it would serve multiple uses and ultimately would result in a reduction in staff mileage charges.
“I support Harley (Greenfield) and Gerald (Shortt),” said Deputy Mayor Michael Traynor, “I don't see a need for it.”
Debate amongst councillors over the proposed Capital Budget was multi-faceted. A considerable amount of time was spent discussing which roads in the municipality should be considered as priority for repair or reconstruction. There was also debate about the wisdom of taking on more long term debt.
Councillors Shortt and McPherson were opposed to the idea of adding on to the current municipal long term debt which as of December 31, 2009 amounts to $9.5 million. The long term debt funding included in the proposed capital budget would bring the total municipal debt load to more than $10 million.
The cost to the municipality to service the current $9.5 million debt will be more than $950,000 in principal and interest payments in 2010. $525,000 of that cost is paid through the water and waste water services which is self sustaining though the fees that users of the municipal water services pay. The remaining $425,000 in debt servicing costs are funded through taxation.
The tax supported long term debt is attributed to four major areas. $3.1 million for the renovation of Meaford Hall, $239,000 for Fire Services, $1.4 million in past road and transportation projects, and $113,000 in debt incurred in 2007 for Waste Management.
Not all members of council were against the notion of taking on additional debt. When discussing proposed improvements at the harbour which will require $115,000 in borrowed funds, Councillor Harley Greenfield felt that there were benefits associated with improving one of the revenue generating facilities in the municipality.
“I don't look at these three projects as long term debt, I look at them as a good investment,” said Greenfield.
Before council makes any final decisions with regard to the budget, they are bringing the proposed budget to the public and seeking input. Two public information sessions will be held.
The first session will be on Monday March 22nd at 7:00 pm at Meaford Hall with a regular council meeting to follow at that location, and the second meeting will be the following evening on March 23rd at 7:00 pm at Woodford Hall.
Council will then meet again on Wednesday March 24 at 5:00 pm to discuss both the public input and the details of the proposed budget in hopes of being in a position to approve the 2010 municipal budget at the April 12 meeting of council.
