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Home My WebLink AboutThe Citizen, 2009-03-26, Page 21Huron East deputy-mayor BernieMacLellan thinks it’s the right timeto raise the municipality’s taxes by 10 per cent. With Huron County approving a miniscule 1.79 per cent tax increase, and Huron East nearly $400,000 over budget at its current state of budget deliberations, MacLellan said now is the time. The municipality has an ever- growing list of capital expenses and an aging fleet of public works and emergency vehicles. Its currently proposed tax increase of three per cent, will barely make a dent. “At some point we need to catch up,” he said at council’s March 17 meeting. “I think now would be the time to discuss it when we’re $370,000 on the wrong side of the red.” MacLellan suggested that if Huron East doesn’t raise the tax rate, the municipality will continue to struggle with capital expenses. “We haven’t been replacing our equipment as we’re supposed to be,”he said. “And we haven’t beenpulling our weight as far as taxingthe municipality.”This is not a new suggestion fromMacLellan, who proposed a 13 per cent tax increase in 2007 and a 10 per cent increase in 2008. However, despite the economic hardship everyone in Huron County has been facing lately due to the global economic unrest, MacLellan said now would be the time to impose such a tax increase and take advantage of a low increase from Huron County. “I know the economy is bad right now, but while we’re not getting slammed by the county tax rate, I think now is the time,” he said. Treasurer Brad Knight, who presented council with the third draft of the 2009 budget at the meeting, cautioned MacLellan against such an increase, reminding him that while the tax burden on ratepayers may look light now, area-rated services have yet to be included in the budget. In addition to the $370,000 in capital expenses, there was also aproposal from Huron East fire chiefMarty Bedard, as requested bycouncil at its March 3 meeting, toinvestigate the potential savings ifthe municipality were to purchase three emergency vehicles in 2009. The $370,000 that council will still have to account for only currently includes one vehicle, so such a proposal, even with savings, will add hundreds of thousands of dollars to the draft budget. With prices for the two tankers the municipality requires hovering around $200,000 from all three of the companies Bedard spoke with and a rescue truck coming in at just under $250,000, savings to the municipality when buying all three trucks at the same time, from the same company came in at five per cent for two of the three companies. The third offered no compromise in price. Bedard also mentioned in his report that there will be new diesel emission regulations coming into effect next year that could add between $5,000 and $15,000 to eachtruck depending on the make andmodel of the engine.However, treasurer Brad Knightpresented the third draft of thebudget to council at its March 17 meeting, which still needed just over $350,000 in cuts to come in at an even bottom line. This, with just one fire vehicle in the budget, not three, which would add significantly to the budget. MacLellan discussed possibly debenturing the three vehicles, but mayor Joe Seili did not like the proposal. MacLellan said that the five per cent savings could possibly offset the interest paid in the debenture over two years, considering current interest rates. “It would just be good to get something off our plate for the next time we come back around to this argument,” MacLellan said. However, Seili did not like the idea of debenturing the vehicles and he did not like MacLellan’s tax increase proposal. “I don’t like the idea, you end up paying $1.40 on every dollar,” Seilisaid. “If you want to buy threevehicles, then we’re going to have toleave about $500,000 of pavingsomewhere, because we’re nothaving a 10 per cent increase. That’s ridiculous.” Councillor Bill Siemon then proposed possibly purchasing used vehicles. He said the municipality could get a truck 10 years old from the U.S. for half the price. Seili, however, was not in favour of that proposal either, saying that the condition of the truck doesn’t necessarily matter, but when discussing emergency vehicles, he doesn’t want to be buying someone else’s problem. Siemon said the municipality wouldn’t have to be concerned with a used firetruck’s mileage, because typically, Huron East doesn’t put that much mileage on their emergency vehicles. “Well I hope they never leave the hall. I hope every firetruck we ever have never leaves the hall,” Seili said. “I hope the tires rot off of them before they move.” THE CITIZEN, THURSDAY, MARCH 26, 2009. PAGE 21. HE’s MacLellan wants 10% increase in taxes Business Directory Offering a full range of services: auditing, accounting, business planning, income tax planning, personal financial planning, computer and management services. BDO Dunwoody, LLP Chartered Accountants and Advisors Alan P. Reed, CA P.O. 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