Opening budget salvo puts tax hike near nine per cent

Posted January 7, 2013

The first draft of New Tecumseth's 2013 budget would set the municipal portion of the property tax bill at $1,631, an increase of $132 or 8.8 per cent over last year based on a home with an average residential assessment value of $301,321.

The proposed budget will be tabled tonight at the first of five council working sessions planned over the next month at the Alliston Fire Hall, each one starting at 7 pm and open to the public. A separate public input session is scheduled for 7 pm on Wed., Jan. 16 in the council chambers. Council is targeting a final version approved in February.

As posted on the Town's web site, the opening draft proposes to spend $29.9 million in 2013, an increase of which after various revenue sources, transfers from reserves, and growth impacts are factored in, a shortfall of $22.4 million will be required from taxation.

"Through the compilation of this package, consideration has been given to
generating additional revenue sources, operational efficiencies and the review of
current service delivery parameters with an emphasis on cost containment and
savings, adherence to Council adopted fiscal policies and plans, as well as the development of capital reserves," according to the Executive Summary.

"It is important over the next few years that the organization begin to phase in the return of annual, predictable reserve contributions. The 2013 budget, as presented begins to phase in this return with 50 per cent of the annual contribution as per Council adopted policy to the fleet and apparatus reserve accounts included in the budget.

Staff are also working to monitor the cash flow for development charge projects so that the projects are aligned with the year in which they are required and the funds or debt capacity are available to fund them. There are no new growth related development charge projects proposed to be funded through the issuance of long term debt included within the 2013 proposed budget."

One of the budget's largest increases is in policing, which is $607.000 more than in 2012. Part of that is to shoulder New Tecumseth's increase of the tri-party contract with the OPP, which is going from 53 per cent to 57 per cent. As well, it marks the impact of pay increases for OPP constables across the province. This year marks the renewal of a 5-year policing contract with the OPP. It's noted however, that there are ongoing discussions with the OPP to identify areas where costs can be lowered.

It's also expected that by the time the final draft is ready for a council vote next month, that several areas will have been targeted for increased fees, particularly parks and recreation where user rates are anticipated to climb at such places as Alliston Memorial Arena.

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