2014 BUDGET BYLAW - MARCH 25/14 Originally meeting was scheduled for several weeks ago with a duration of 30 minutes. It was then rescheduled to Mar. 25 and included in regular Agenda. Having sat through the entire budget presentation process I thought the scheduling change interesting. So interesting that on Feb. 19 I decided to road test my crystal ball and prepare this summary in advance. That is what follows with minor updates from the final budget. ============= Council tonight approved the 2014 budget with minor changes from the first draft. Operating Budget - 2014 - $14,476,330 2013 - $14,679,500 Capital Budget - 2014 - $3,549,500 2013 - $1,497,500 Total budget - 2014 - $18,025,830 2013 - $16,177,000 Not included above is the first repayment to Domtar of $1,272,000. This will be paid from the tax increase levied upon Domtar. In effect they repay themselves. No affect on residential tax rate. Homeowners have already picked up the tab for about half the loss. This represents a residential tax rate increase of .29%. With education total tax increase is .94% = $22.23 for average homeowner. No discussion took place. The real questions were never asked when Department Managers made their presentations so there was no need to go against the flow tonight. Council took up time congratulating themselves for the efforts made during difficult times in 2013. Several of these self serving comments were a tad over the top. Staff under direction of CAO deserved the recognition for efforts as do the collective bargaining units. These are the people who deserve the most thanks from residents. Nobody asked if taxpayers are getting maximum value for their investment. Council knows best so take their word for it. There are a number of questions that I and other residents felt should have been asked during the process. They are in earlier posts under Budget Review. More questions came to mind tonight when the $156K loader purchase was approved. Clearly efforts directed to the budget were to maintain the status quo and that was the target. It was met. The expected comments about provincial downloading and grant reduction were heard, and will be again in coming years. Would now not have been the time to begin to anticipate those or is a blind eye better in an election year? Regarding tax rates there were the expected high fives that the residential tax rate would drop below 0.020% this year. Of course it did - the increased residential assessment and a revenue neutral approach when assessments increase were the actual causes. Not council actions but again, its an election year. There was no comment (thank heavens) about the increase in 2013 Reserves. While they increased that is because 2013 Capital Projects and a General Service Review, were cancelled. The 2013 gas tax funding for Hwy. #6 was placed in reserves. The Hwy. #6 culvert is included in 2014 budget despite the Mayor saying the Town has informed Ministry they will not pay a cent towards it. Dryden has chosen to withhold part payment to MPAC in protest. Espanola chose not to do so despite it being mentioned at one time. The 2014 budget includes $300K for a lift at the Hall. The Town has the option of terminating the courts lease with notice. Council have never given this consideration as opposed to expensive modifications for a tenant. At the same time it is repeated how crowded staff are. This council was the one who were charging forward with expensive facility expansion plans when the assessment issue reared up. Save for that residents would almost certainly have seen debt increase by at least $5 million. The single item that had the most impact on savings last year was cancellation of capital projects. That was easy yet that work still needs doing and will just cost more. This and other councils have ignored infrastructure in favour of wants. The Asset Management Plan - details not yet released - identifies some $3.4 million a year (in todays dollars) is required on infrastructure spending. As everyone is aware the operating costs will increase every year as well. At some point there must be a Service Review of Espanolas Cadillac services. This council refused that knowing it might perhaps mean some hard decisions and reduced popularity. This budget and the actions of this council and previous councils, are only delaying a day of reckoning. The delays in fact are almost certainly going to make matters worse. It will be for residents to decide how they have been served by this council. Might be an idea to remember that they anticipated losing the Domtar appeal and had quietly passed the anticipated loss on to residents. Only the unexpected amount of the assessment reduction brought that to light. / DOMTAR ASSESSMENT Regarding Domtar assessment issue. Council knew long ago what actions they would take, that being industrial tax rate increase and one time funds transfer from province. With that in mind they could approve a budget with at best a lethargic review knowing there would be no ramifications. Again last night the Mayor had to inform residents that the one time provincial funding is still not finalized. This is in part due to failed negotiations with Domtar asking them to forgive part of debt. He did state that it was anticipated there would be no further requirements to repay Domtar from Town funds. A bit of good old fashioned blackmail is underway as Domtar tax rate would be reduced if they forgive part of debt. At some point this will all come to an end.
Posted on: Wed, 26 Mar 2014 10:42:12 +0000
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