4.9% tax increase in Georgina still on table

YorkRegion.com
Jan. 31, 2017
Heidi Riedner

Budget deliberations continue this week with a 4.9-per cent increase over last year on the table to cover $38,870,800 required from the tax levy to support a total $86,626,410 proposed budget.

That would mean an extra $88 in taxes on an average property value of $327,140.

The draft budget breaks down between $40 million in operating expenses, almost $15 million in capital expenditure, $24 million for water and waste water infrastructure and $7 million in contributions to reserves.

While 1 per cent of the 4.9 per cent is being directed to capital investment regarding asset management, some of the primary cost drivers of the budget, according to treasurer Rebecca Mathewson, are population growth, staffing costs, reduced revenue reductions, hydro and gas costs, and contributions to town reserve funds.

For example, despite one of the largest single rebate cheques handed out by Hydro One to the town earlier this month for $376,360 as a result of energy savings from switching 4,230 street lights to LEDs, the town’s total hydro bill for all of its facilities and operations was $1.4 million.

Mathewson further advised council during budget sessions last week that an increase of 3.5 per cent from last year would be required to keep service levels at status quo without any new initiatives being added to the budgetary pie.

Having said that, a number of new initiatives got the tentative thumbs up before final approval, including a number of new hires, $2 million for a multi-use recreational complex (MURC design), $1.7 million for road improvements and $240,000 for a design of a new $3.2 million fire station in Pefferlaw.

Mathewson added staff will be looking at using long-term debt to finance big-ticket construction projects regarding the town’s capital assets.

As it stands, the town will carry a debt load of close to $6 million in 2017.

While roughly $25 million in discretionary reserves and a $4 million projected year-end balance in obligatory reserves that include the federal gas tax, development charges and cash in lieu of parkland exist, an upcoming review expected to be tabled by August will clean up, consolidate and eliminate obsolete and/or accounts with balances less than $5,000.