Lakeshore Advance, 2011-04-20, Page 2ay, April 20, 2011
Lambton Shores: It could cost you $9.34 over 2010 amount
Lynda Hillman-Rapley
Lakeshore Advance
Nearing the end of budget talks, the
estimated tax rate increase will cost you ( for
a $100,000 of assessment) $9.34 increase
over the 2010 amount.
What to do what to do?
CAO John Byrne explained that council
asked the management Tema to take another
look at the draft budget
2011 Budget to see if there were any areas
where reductions could be made to help
bring the tax rate down to 0%. "Unfortunately
we do not believe there are any other areas
where reductions could be made that would
not result in potential problems down the
road," he said. Counc. Martin Underwood
agreed stating in his opinion they have cut
everywhere they could and they should not
be asking them to cut anymore.
"As I indicted to Council at the outset that
the budget review process was a very
thorough and exhaustive one that began in
early September last year. Our target then
was a 2% increase over last year but that was
made difficult by the new Policing
Contract that takes up 2596 of the tax
supported budget alone, along with
significant increases in insurance premiums,
fuel and hydro costs. Council also has a
collective agreement with staff that called
for a 2.75% wage adjustment. The 201 1
budget is also reflecting the cost of long term
financing for the new Legacy Centre," said
Byrne.
Since building permits are continually
monitored, as the objective is for the permit
fees to cover the cost to deliver the building
inspection services, including the admin
support and ongoing training of staff. The
building department is one of the business
units that provides services to a specific
portion of the municipality and the goal is
for those benefiting from the service to fully
cover the costs of providing the service.
Currently, the fees charged are not fully
sustaining the department.
Changes to the fee structure were
discussed and Deputy mayor Elizabeth
Davis Dagg said developers are concerned
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about "short term gain for long term loss"
"We should not discourage building;' she 'they have had to adjust the $11 million in
said. She asked that this report be deferred. 2011 and $12 million in 2012 to reflect the
Counc. Martha Underwood said they were new projected cost of $26 million (that will
stalling so they didn't have to make the hard be in the final budget document).
decisions. "We need to deal with this now,"
he said. Davis Dagg asked how this would Once they figure out what somethin
affect the budget numbers and if they could going to cost they develop a plan to come up
do it next year. Treasuere Janet Ferguson with those funds. First they adjust sewer
explained that as it stood, there was not rates to start building toward that, then they
enough funding in the projections for what adjust Development Charges so new
they need to do now. development pays its fair share, then if
Council passed a motion 'Ihat 50% of the available they go after grant money and then
Building Permit fee increases proposed in adjust and tweak the projected time frame
the "Change to the Core" be implemented based on those numbers. If there are no
in September 2011, and the balance be grants then it will take them longer to build
implemented in September of 2012. Council up the funds we need, If there is no or slow
members agreed that this would encourage development, then the same thing. When
builders to build before the Sept. increase. they originally contemplated the new plant
Fire trucks and roads the time frame was much longer but when
Waiting another year for fire trucks seems the government gave them 2/3rds the cost
ridiculous to Underwood who stated nothing they could cut that time frame down
will he cheaper next year. Roads was another considerably. "It is something you have to
budget issue council realizes does not have constantly adjust and tweak to reflect
enough funding for. In a tnotion they agreed circumstances.
the 2011 Contribution to the Road Reserve 7 says Byrne. As the "lead municipality"
be increased by $ 50,000.00 and that the for the project they show the full cost of the
2011 contributions to the Fire reserves be plant in their budgeting but also show that
increased by $62,500.00. the partners (South Huron and Bluewater)
Deputy mayor asks for deferral of will be paying their shares and Lambton
projection Shores show all the grant money in their
As a suggestion to pass the budget was budget. "It is up to our partners to determine
nearing Davis Dagg asked about the $11 how they will come up with their shares,"
million projection for the sewer treatment
facility. She asked CAO John Byrne if it could 'throughout the whole process they have
be taken off this year's budget and put it to make sure the residents can actually
back next year, suggesting it has not been on afford it. "The council is representing those
the hooks for the past couple of years but residents and need to be assured it is
was quickly corrected by the CA() and affordable," says Byrne.
treasurer that yes, this number has been a
projected and in the budget as a projection
for the past three or four years. She rade a
motion to have it removed but there was no
seconder so the motion was lost.
Explaining this projection
When it comes to capital projections
Lambton Shores is responsible for roads and
watermains and sanitary sewers and
recreational facilities along with fire halls
and fire trucks. They know they have a
certain life expectancy. It is their job
to determine what that is and when they will
be expected to do major repairs and or
replacements, so they set aside money in
special reserve accounts each year to ensure
they have the money they need down the
road.
As an example, the Grand Bend
lagoons are getting past their life expectancy
(30 years) and they know what it will cost to
keep thein going, so they set that money
aside for when they need it. 'they also have
to project community growth in
determining how big they will need to be to
meet that growth down the road and start
setting money aside to meet that cost.
CAO John Byrne said in the
past municipalities didn't plan that far
ahead and tried not to increase taxes or
water rates but when the were faced with the
actual need to do something they faced
making dramatic tax increases or were
forced to borrow money to meet those costs.
"Setting aside money now and earning
interest on that money avoided or lessened
the need to borrow money and avoided the
big jumps in taxes and water rates," he said.
In the treatment plants case it is being
paid for by Just the residents who will need it
in Grand Bend. "All the sewer system users
in Lambton Shores are helping Grand Bend
build this plant. Just like Grand Bend
residents will be contributing to the future
needs in the other areas. 'C'hat's one of the
strengths of amalgamating," he explains.
As it stands
As it stands after last week's meeting the
tax rate increase stands at 1.92 % over the
2010 tax rate. The Taxable assessment
increase (market value assessment) of 6.71%
and of that 1.41% is growth related, ('This
increase is new homes or buildings added to
the assessment that were not in last year's
budget). '1'his translates to $495.02 for
$100,000.00 of assessment or $9.34 increase
over the 2010 amount. The total operating
budget expenditures equal $ 19,557,556.85.
The 2011 taxation amount required is
$8,344,369.15 which is 9.28% over 2010, 'the
primary increases to the amount required is
the increase in policing and insurance costs
as well as the increase allocations to the road
and fire reserve funds.
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