Although the final budget will probably not be presented to council until the May 5 meeting, it appears Minto ratepayers will be looking at a tax increase of slightly less than three per cent, according to the town’s treasurer Gordon Duff.
The draft 2010 budget was discussed during a special meeting of the town’s finance and personnel committee on Saturday, April 17.
Duff said the budget has been under discussion since November. Some figures have been worked on, and adjustments have been made. “We took a bit away from sewers, and put a bit in other places,” Duff said.
One key capital expenditure this year is a new fire truck. It had been scheduled for purchase in 2011, but the decision was made to move the purchase up. At present, municipalities do not pay provincial sales tax on such vehicles, but they will pay the harmonized sales tax after it comes into effect. While municipalities will get most of the money back, there is a small percentage that will not come back to Minto, and in the case of a fire truck, it amounts to about $7,000, Duff explained. That is a significant enough saving to adjust the purchase schedule.
Duff said the town ended the year with an unplanned $140,000 surplus, largely due to the lack of snow. “We’ll plow that into more road projects,” quipped Duff. As always, road work plays an important role in the municipal budget. On the schedule for this year is work on the 8th Line, and the Ayton Road, Duff said, adding that there are some urban roads in need of work, too.
He noted that a lot of the 2010 budget was committed in 2009, to allow the town to take maximum advantage of infrastructure stimulus money. The largest project being completed this summer is the Harriston sewer work, under the Build Canada program. This summer, Mill Street is being done. And rehabilitation work in the Lions Heritage Park in Palmerston is being completed, including putting back the tracks and landscaping.
The Harriston arena is getting refrigeration system upgrades, thanks to infrastructure stimulus funding.
Streetscape work continues this summer under the Rural Economic Development program, a major project in all three of Minto’s urban areas, Duff said.
Among the difficulties in preparing the budget is “trying to forecast fuel and hydro costs,” Duff said. “All we can do is give it our best guess.”
Also on the increase is the cost of municipal insurance. This year, Minto saw a 17 per cent increase in its insurance costs this year. “That affects all departments,” said Duff.
The Minto tax rate amounts to only part of what Minto residents will pay in their 2010 municipal taxes. Also included are education taxes and county taxes. Duff said the education tax is lower this year, while the county rate has not been set. “I wouldn’t be surprised to see a total increase of less than three per cent,” Duff said.