June 16, 2011
Town cuts tax rate
by Vance Gutzman
Deep River ratepayers will see a drop in their property tax rates this
year.
Town council gave approval last night to its 2011 budget, which will
see the the municipal levy on an average home coming in at $1,265.45.
Assuming the same average residential assessment as 2010, that would
translate into a $102.42 reduction in the tax bill - a reduction of
8.09 percent in the municipal tax rate.
An actual decrease in the residential tax rate has been the stated goal
of the town's ad hoc finance committee throughout this spring's
budgetary deliberations.
Councillor Chris Carroll, who chairs that committee, presented the
latest draft budget to the town's committee of the whole.
"There was a feeling that we wanted to hold the line on any increase to
the ratepayers," Carroll said of the committee's mindset.
"We felt that was do-able."
In order to do it, the draft budget will use the full $289,516
operating surplus left over from 2010, while at the same time
transferring $859,231 into the town's capital reserve fund.
Total municipal expenditures this year are pegged at $8,088,525, and
$4,242,551 of that will be raised through taxation.
"We felt we could operate at this level," Carroll said.
"It's not luxurious by any stretch, but we are putting pretty
significant money into the capital budget."
The 2011 budget contains $1,177,977 in capital expenditures, of which
$723,016 will come from the town's asset replacement reserve fund,
$245,992 from government grants and $96,964 through taxation - leaving
an unfunded balance of $112,000.
That unfunded balance stems from the fact the town has $287,995 in
revenue set aside for the replacement of the Dectron dehumidifying unit
at the community pool, while that unit's costs is pegged at $400,000.
Other major capital expenditures for the town's recreational facilities
this year include $140,459 for new docks at the marina and just under
$70,000 for dredging at the marina.
The public works department will also be the recipient of some big
ticket capital expenditures, including $151,349 which has been set
aside for a new John Deere loader, $50,000 for a salt shed and $72,641
for sidewalks, curbs and paving.
In terms of the town's operating budget, meanwhile, fire training costs
will increase by $25,000 and the budget for winter control in public
works has increased by $32,500, to more closely reflect the actual
expenditures from 2010.
The town budgeted $152,200 last year for winter control, but ended up
spending just over $183,500 to keep the streets and sidewalks clear of
snow.
Transportation services have also increased, by $48,212, as a result of
salaries and benefits.
Recreation programs, meanwhile, have decreased by $13,167 and the
arena's operating budget has dropped by just under $18,500, though the
community's pool's operating budget has increased by just over $14,500.
"We can operate at that expenditure level and I don't think it will
mean we're going to go back to a big jump next year," Carroll said.
Carroll made that statement in reference to concerns that had been
raised by Deputy Mayor Mary MacCafferty at previous budget meetings,
when she cautioned against offering taxpayers a tax break based on
revenue, like the $314,800 increase in unconditional grants from the
province, which may not be available again next year.
"It's no secret I'm not happy about a tax break (based) on a one-year
windfall," MacCafferty said last week, reiterating her concerns.
"I hope you're right about next year. I hope you're right and I hope
this plan does sustain itself.”
MacCafferty also raised some questions about specific expenditures
contained in the 2011 draft budget, including $10,000 that has been set
aside under capital expenditures for furnishings for the town hall's
lobby.
Council has agreed, in principle, to keep the town hall lobby open to
the public, from 8 am to 8 pm, seven days a week throughout the year,
though MacCafferty voted against the idea of doing so, out of concerns
for potential vandalism.
Mayor David Thompson responded to her concerns about the $10,000
furnishings budget last week by saying he doesn't want to put anything
in the lobby that might be prone to vandalism.
"But I'm looking for something more comfortable than the church pew
that's down there - no offence, Councillor Syme," he said, looking over
at Councillor Ruth Syme, who is a church minister.
"None taken," Syme replied.
"Church pews are made that way to keep people awake."
MacCafferty also questioned why the mayor's discretionary fund has
risen in this budget from $3,000 to $7,000.
And while the deputy mayor was worried the town may be mortgaging the
future for this year's tax break, others on council didn't feel the
same way.
"I wouldn't support zero for the sake of zero," Councillor Terry Myers
said at last week's meeting.
"If we were cutting the capital to get down to zero, I don't think I
would support it, but that's not what we're doing. What I'm seeing is
responsible budget preparation."
Mayor Thompson concurred.
"I share some of the deputy mayor's concerns, but we're not just
rolling the dice and hoping," he said.
"I expect next year we'll be in equally good shape."
Combined with county and education taxes, the full property tax bill on
an average home in Deep River this year will be $2,085.56, an increase
of $17.81 or 0.86 percent.
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