Council expected to adopt 2013 draft budget tonight
Posted February
4, 2013
New Tecumseth council is scheduled tonight to
adopt a 2013 budget that breaks through the $30 million barrier in
proposed operating expenditures for the first time, and whose bottom
line will increase the average municipal portion of taxes to $1,631, or
$116 more than 2012.
The County portion is estimated to increase by $9.31 or one per cent,
while Education taxes are estimated to drop an average of 2.6 per cent,
or $17.20, which brings the combined property tax bill to $3,216, an
overall increase of $108 or 3.48 per cent.
The budget proposes to spend $30.17 million this year, up from $27.6
million in 2012, and $25.7 million in 2011.
There are 7 new staff complement proposed in the draft 2013 Town
Budgets including
positions for six full-time firefighters and one GIS Technician, whose
currently on a contract.
The finance department's overview summary of the budget included with
tonight's budget bylaw, notes that "Total accumulated Post-employment
benefit liability for the Town as at December 31, 2011 was $2,428,813.
The estimated net liability for 2012 is approximately $3.6 million with
the 2013 estimate not available. The current year change between 2011
and 2012 was approximately $1,216,000. Post - employment benefits
include such items as accumulated vacation, retirement gratuities, WSIB
claims (net) and benefit extensions to employees after retirement. The
net cost of WSIB claims to the Town along with confirmed retirement
gratuities are included within the Draft 2013 Budget. However such
items as accumulated vacation and certain other post retirement
benefits are not."
The 2013 budget also adds $6.4 million in new long term raising the
total principal amount to approximately $70 million. The new debentures
include:
- 2013 Road Upgrade program - $1.6 million;
- Fire Vehicles (Fire Tanker and Rescue Truck) - $.5 million;
- Alliston WWTP upgrades - $2.3 million (future DCs);
- Parsons Road Reservoir project - $2.0 million (future DCs).
Finance staff have updated the Annual Repayment Limit (ARL)
incorporating projects in the draft budget that are proposed to be
debenture funded. The updated ARL amount is $1,355,579. This is the
yearly limit the Town would be allowed to incur for principal and
interest payments on debt related charges above and beyond the Town's
current and proposed indebtedness. This limit would allow the Town to
incur additional long-term debt for the following amounts and term:
- $11,800,000 for a 10 year period
- $19,500,000 for a 20 year period
- $24,300,000 for a 30 year period
- or a combination of the above.
Along side the property tax increases are five per cent hikes to water
and wastewater rates. All volumes at a rate of $1.74/M3.
Exceptions:
Industrial Block users that use over 30,000 cubic meters
per year (Honda) pay a water charge of $1.28/M3;
Baxter Corporation will pay water charge of $0.96/M3.
And, Baxter Corporation will be charged Sewage Service rate of $1.74
/M3 based on an estimated bimonthly sewage of 17,302 M3 to go to $1
.74/M3 based on actual sewage flows when they install a sewage flow
meter, billed monthly.
Simcoe Manor will pay a Sewage Service charge of $52.20
flat rate bi-monthly for the number of equivalent households their
operation represents (158 residents) which works out to $2,610
bi-monthly. And, Non Metered Customers will pay a sewage
charge of $52.20 per billing period.
Because tonight council meets in committee, it will not be ratified
until next Monday night.
