Last year’s public budget meeting attracted a dozen residents who asked questions and presented suggestions and Council members listened. As a result, the rise in the municipal levy fell from the proposed 7.22% to the final 3.32% increase. Despite this evidence of public influence on budget decisions, only three residents (the usual suspects) came to hear Director of Finance Kimberley Pope present the second draft of the 2017 budget on February 6th.
The township faces ongoing financial challenges that are reflected in the 2017 budget, including the impact of aging infrastructure, increasing cost of utilities, fuel, insurance, supplies and the upcoming of loss of OLG funding contributions to the Township of Cavan Monaghan. There have also been cuts in funding collected through transfers from senior levels of government, particularly from the province. Funds received from the Province’s main transfer payment to municipalities in the Ontario Municipal Partnership Fund (OMPF) fund have fallen by $268,600 since 2010, and total transfer payments are down over that period by $267,901, representing a 26% reduction over the past six years.
Total expenditures in the township’s Operating Budget for 2017 is 1.17% higher than the Operating expenses for 2016, with a total planned expenditure for the year of $6,115,339. The major components in this budget is the $1.2 million expenditure for Police services (down .2%), Public Works expenses of $1.69 million (down 1.6%), Protective Services expenses of $666 thousand (up 4%) and Parks and Facilities expenses of $639 thousand, (up 2.3%). The budget reflects a reduction in the Environmental expenditures of $36,060, reflecting savings achieved in the operating costs at the Transfer station and the reduction in landfill monitoring expenses.
Following their policy of reducing the township’s dependency on OLG revenues, the budget includes a transfer to the Asset Replacement Reserve of $1.5 million which will provide resources to maintain and/or replace future core municipal assets and infrastructure. This transfer funded from the municipal tax levy this year represents 42% of contributions to these reserves in 2017, up from 33% achieved in 2016. The remaining 58% of asset replacement funding this year will come from the OLG Revenues.
Gross expenditures in the 2017 Capital Budget total $4,168,700, of which $1,374,742 will be funded through development charges and reserves, leaving a net expenditure of $2,793,959. Included in this total is the first of four annual payments of $257,040 representing the township’s portion of the Millbrook Dam remediation project. Fire Services will incur equipment expenses of $377,726 and capital road work expenditures are projected at $2,571,153. There are expenses of $154,417 earmarked for Parks which includes $95,417 in design expenses for a new community centre and some capital expenditures for the Old Millbrook School. Two hundred thousand dollars of capital spending for the Planning Department is split between a Comprehensive Review for the Brookfield proposal and a new Zoning Bylaw plan.
Given discussions had drawn a consensus amongst Council members; they opted to approve the budget on the spot that evening rather than refer it to the subsequent meeting for further review. The motion to approve a 3.5% increase in the municipal portion of the tax levy was approved.
The County and Education components for 2017 are expected in May and will form the basis for the August and October tax bills which will incorporate the full levy from all sources for 2017. KG
