North Grenville passes 2012 municipal budget, 2.36 per cent tax increase

Posted Jan 26, 2012 By Ashley Kulp

EMC News - More than two months of budget deliberations came to an end Monday evening as North Grenville Council passed its 2012 municipal budget.

The budget was formally endorsed during the regular council meeting and reflects a 2.36 per cent increase in tax revenues for municipal residents.

According to treasurer Sheila Kehoe, taxation was determined "based on revenue 'neutrality,' where taxes are calculated based on 2011 tax revenues plus growth taxes." She said that just because there is a 2.36 per cent increase doesn't mean residents' taxes will go up. They could in fact decrease, based on the four-year phase-in to the Municipal Property Assessment Corporation's (MPAC) property assessment.

"If a property is subject to the assessment phase-in, the increase will vary and the tax rate will decrease by 2.7 per cent," Kehoe stated in her report to council.

"A residential home with the average assessment increase of six per cent will see an increase in the municipal share of the tax bill of $32.60."

Councillor Tim Sutton, chair of the finance and administration committee, said the abundance of residential and commercial growth over the last year will reflect positively on North Grenville residents and that the four-year phase in of property assessment increases represents an average increase of 6.1 per cent a year for North Grenville.

"As a result of this tax rates have actually gone down over the past four years and 2012 is no exception," he continued. "Our concern as a council and as municipal property taxpayers ourselves was to ensure that when you open your tax bill that there is no surprise. We are all committed to keep taxes low as doing so makes us more competitive with neighbouring municipalities in eastern Ontario, which makes our municipality attractive for investment by new residents as well as new business."

Overall, Sutton admitted this year's budget deliberations were difficult but he was pleased with the end result.

"Every year seems to bring its own challenges and this year is no exception," he stated in a written report read by councillor Terry Butler due to Sutton's absence at the meeting.

"As with every year difficult decisions were made going through the budget process, but we have worked hard to develop a budget that touches all areas of the municipality.

A budget that will keep the amount residents pay on the property taxes at or below the rate of inflation, and one that is conservation and responsible."

The overall budget shows a 6.2 per cent decrease in total operating revenues and Kehoe noted highlights are, that there will be no increase in waste fees and a $35,000 increase in recycling revenues due to "higher volumes and market conditions."

In terms of expenditures, a 2.3 per cent increase is reflected and some of the reasons for that include the creation of a new 12-hour a week bylaw enforcement position at a cost of $14,000, $50,000 for the development of the integrated community trails strategy, an additional $69,500 for policing costs (shows a 2.65 per cent increase), $15,800 increase in the costs of landfill monitoring, and an additional $21,110 to the library budget.

Other expenditures show a $5,700 increase to fire prevention, a reduction of $31,000 in transfer station costs due to lower volumes of waste, as well as a $31,000 jump in property/liability insurance costs. The municipality will also pay an extra $5,700 for their portion of the Rideau Valley Conservation Authority (RVCA) levy, but have yet to receive the amount they will be required to fund for the South Nation Conservation Authority levy.

On the capital project side, 2012 will be a little less active than previous budgets for North Grenville as there is a reduction in available non-tax revenues for capital projects.

"In 2010, North Grenville received two-thirds funding for the new library ($2.6 million) and rural roads rebuild ($1.2 million)," Kehoe reported. "Extension of both projects was approved to Oct. 31 and are now complete," Kehoe reported, adding that presently council's strategy is "to minimize the use of reserves, reserve funds and borrowing."

"This directly impacts the number and extent of capital projects," she continued.

This shows in the $533,360 in taxation for capital projects for 2012 compared to $688,600 last year. As is tradition in past years, most of the capital funds ($1,149,350) have been earmarked for upgrades to roads as has the replacement of a 3/4 ton truck ($45,000) and a new grader ($300,000). The grader will be purchased using reserve funds and by borrowing. The sidewalk expansion of Bridge St. will also be completed in 2012 at a cost of $78,000. Engineering studies for the Hurd St. bridge ($350,000) stormwater urban master plan ($150,000) and Rideau/Sanders St. reconstruction design ($15,000) are also featured in the budget.

The budget also includes $350,000 for the newly renamed North Grenville Fire Service which Sutton noted "will ensure that our tanker shuttle service to rural residents meets today's standards and that residents can maintain their fire insurance discounts."

New energy efficient lighting in rink two of the North Grenville Municipal Centre at $45,000, as well as the replacement of two lights at the South Gower Park ball diamond ($85,000) are other projects to be undertaken this year.

"As a council we have worked hard to be fiscally responsible and we will continue to do so again through 2012," Sutton commented.

WATER/SEWER

The municipality is legislated to separate the water/sewer budget from the municipal budget and Kehoe remarked that the 2012 water/sewer budget reflects a 14.5 per cent increase in operating revenues and a 9 per cent jump in expenditures.

Due to growth and consumption, user fees for the system will see a $275,000 increase, but the municipality will also receive $36,350 in revenue from EMS for the rental of the Kernahan public works office.

The budget also shows $2.27 million in capital projects including the replacement of the Alfred St. generator and Clothier St. water and sanitary lines, as well as the beginning of work on the new municipal well in the east quadrant. The design for the sewage equalization and septage facility will also be a priority.

While council has a policy in place for long-term borrowing and didn't take advantage of it in 2011, Kehoe noted they will be doing so this year "but for a shorter amortization period (five-year terms) for the roads and water/sewer projects" but she indicated there will be little impact.

Police services board and library budgets endorsed

Following adoption of the municipal budget, council also passed the 2012 police services board (PSB) and North Grenville Public Library budgets. Each year, council provides a municipal grant to the library, which will be $220,000 in 2012 (over $198,890 in 2011) and funds a portion of the training for PSB members ($1,030).

The PSB budget's total revenues and expenses for 2012 are set at $15,965, while the library's total expenditures and revenues amount to $276,944.

For more information on the budget, visit www.northgrenville.ca.

akulp@perfprint.ca