Proposed Levy Increase Drops in Round 2 of Budget Discussions

In the second round of budget discussions last month, some good and bad news regarding one of the significant capital expenditures came to light.

A bid for the Millbrook Yard project generated a bid of $787,103.42, which was below the $800,000 maximum established by Council, and was approved at last week’s Council meeting.  This prompted a review of the $1.2 million ceiling set by Council for the Cavan Yard project.  The Director of Public Works determined that using the square foot calculation in the approved tender and applying it to the Cavan Yard project set the project cost estimate at $2.85 million.  That’s the bad news.  Further research indicated that at least a portion of the current project could be eligible for Development Charge (DC) funding, depending on whether the current building was demolished completely making 49% of the expenditure DC eligible or if it was saved, in which case the entire expenditure could be eligible.  This will be explored further and results will be presented at the final budget meeting.

Line by line cuts agreed on at the January 20th meeting removed roughly $85K of expenditures, dropping the current rate hike to 2.75% from the original 3.6% outlined in the First draft budget but short of the 2.5% target.

Further discussions will take place at the February 15th meeting where information regarding the availability of DC funding for projects including the Cavan Yard and possibly the Crestwood Edge Expansion project will be received allowing more informed decisions on the financial implications of some of the more significant capital expenditures the township is considering.  KG

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