Debate begins on amount of tax increase to King Township taxpayers

Yorkregion.com
Dec. 16, 2014
By Tim Kelly

When the dust settled and every councillor spoke, the number five loomed like a thundercloud above council chambers.

And then Mayor Steve Pellegrini rained all over senior management staff.

“I can’t support a 5-per cent tax increase,” he said.

The mayor was telling his budget team he couldn’t back a budget that would add a $99 tax increase on the King Township portion of a home assessed at $614,000. Assuming a 2 per cent increase at the Region of York and no increase on the education portion of the tax bill, finance director/treasurer Allan Evelyn estimated the added cost to the taxpayer would be about an extra $150 for 2015.

The actual budget increase in King Township is a massive 14.7 per cent for 2015, but a huge growth rate of 9.7 per cent is covering nearly 10 per cent of increased needs, leaving the taxpayer to pick up the balance.

Put another way, King’s budget was $28,304,195 in 2014, while its projected budget as of Monday night for 2015 is $30,517,594.

Following Pellegrini’s remarks, chief administrative officer Susan Plamondon, flanked by Evelyn, told council: “We will go back and we will sharpen our pencils once again. We recognize that this is not easy. It’s not easy from where we’re sitting and it’s certainly not easy from where you’re sitting, but we’ll do our best and come back to you with it (budget).”

The budget standoff took place Monday night at King Township Hall when the 2015 budget and business plan was released for discussion only. It won’t be approved until the second council meeting of 2015 on Monday, Jan. 26, at 6 p.m. leaving plenty of time for tinkering and to nudge that 5-per cent increase down.

With a number of councillors and Evelyn several times referring to the consumer price index being in the 1.5-per cent range this year, several elected members inferred a tax increase could be at or at least near that range.

But the treasurer made a strong and passionate argument - he joked it was a “lecture” when he was done - about the need to invest now in tax reserve funds for the future.

“You’ve got four-year and 40-year decisions to make,” said Evelyn in making the case for a 1.35 per cent base budget with 3.65 per cent going into reserves to be used to replace infrastructure decades from now.

“We’re asking you to make decisions that will affect taxpayers 40 years from now (with this budget),” said the treasurer.

Several of the big “ask” items in the budget include a request for eight new employees, some of whom are covered by increased revenue projections.

However, the total cost for the employees, plus a few programs is $547,114 for a net tax impact of 2.43 per cent. With an infrastructure reserve contribution of $722,130, the tax rate was bumped up to 5.63 per cent but the growth rate of 9.73 per cent helped drop the eventual overall rate to 5 per cent.

One of the more contentious “new” employee requests was for a Township communications specialist that caused some debate from the floor.

The job comes with a $100,000 starting salary, vaulting the successful job seeker straight onto the provincial government’s sunshine list.

Plamondon made it clear better communication from the Township was an important priority that council indicated it wanted to see.

“How we communicate, when we communicate, are concerns you (council) have raised with us (staff). A communications specialist will handle our website, our social media, our press releases, our community reports, our media communications - it’s not an add-on to another job,” she said.

It’s not certain if the communications specialist job or any other position will make the final cut. Council will approve the budget at its meeting on Jan. 26 at 6 p.m.