Stephen Vance, Staff
After a short summer break, Meaford council got back to work on Monday, September 12, and the first issue it tackled was establishing the framework for the 2017 municipal budget.
Infrastructure concerns were top of mind during the budget framework meeting, and staff was directed to prepare a draft budget that would include a three percent rate increase on the municipal portion of ratepayers’ property tax bills.
Of the proposed three percent rate increase, one percent will be dedicated to roads infrastructure, one percent will go toward bridge infrastructure, 0.5 percent will be for municipal facilities infrastructure, and council has asked that any increase to the operating budget be limited to 0.5 percent for the draft budget. Municipal staff had recommended producing a draft budget with a 2.5 percent rate increase, however council asked that an additional 0.5 percent be added for facilities infrastructure after receiving a report on the condition of 20 municipal buildings, some of which will also require funding in the coming years in order to properly maintain them.
Meaford Treasurer Darcy Chapman told council that a three percent rate increase would add roughly $60 to the annual property tax bill for an average single family dwelling ($263,513 assessment) in 2017.
Like most municipalities, Meaford is struggling with an ever-growing infrastructure funding gap; Meaford must find a way to fund $30 million in required bridge rehabilitation and repair over the next ten years, $190 million to address road infrastructure needs over the next 50 years, and $54 million to fund water and waste-water infrastructure needs over the next 25 years – and with the financial struggles Meaford experienced in 2009 now behind it (thanks to the much maligned ‘five year plan’ that saw four years of up to five percent municipal tax rate increases to right Meaford’s financial ship), now is the time for the municipality to focus on infrastructure.
“I want to make clear how far we have come in terms of managing the assets we have, and the work that has been done to ensure financial stability and fiscal prudence,” Mayor Barb Clumpus told council. “We really have a large number of heavy financial responsibilities coming forward in the years ahead.”
Councillor Mike Poetker agreed.
“What’s not going to change is our infrastructure deficit, and that’s going to rear up. And if we don’t start to really attack that, we’re going to be lucky if we can manage a four percent increase because some of these things (infrastructure) are going to fail,” offered Poetker, who suggested that council might be wise to consider a new ‘five year plan’ with pre-determined rate annual tax rate increases dedicated to infrastructure needs. “We don’t have a long-term plan, we’ve got an annual plan.”
In addition to infrastructure needs, the 2017 municipal budget will also see pressures from increases in utility costs as well as an anticipated increase in policing costs should negotiations between the OPP and their officers result in a significant salary increase.
While council has requested a draft budget be prepared that includes a three percent rate increase, Meaford’s Treasurer cautioned that while larger than in recent years, the increase will only cover the basic needs of the municipality for 2017.
“This budget at 2.5 percent (3 percent after council requested an additional 0.5 percent for facilities infrastructure) will get you everything that you need, and nothing that you want,” Chapman told council. “So all of those service enhancements, those additional things that council may want to have, or the public may want to have, that’s not included.”
Chapman reminded council that any enhancements to municipal services would require a property tax increase beyond the proposed three percent for the draft budget.
A draft budget will be presented to council at their October 17 meeting.
