Kincardine council hammers out 2015 budget with 7.08% tax-rate increase

After a lengthy debate and trying to cut a few thousand bucks here and a few thousand there, Kincardine council finally hammered out its 2015 budget, with a 7.08-per-cent tax-rate increase, Monday night.
On an average residential assessment of $250,000, that equates to an increase of $92.04, for the municipal portion only. The tax bill also includes the Bruce County levy and the education tax.

In her report, treasurer Roxana Baumann said that since the last budget meeting Jan. 26, the municipality has been advised that the annual premiums for the extended health care and dental benefits will be increasing by 12 per cent, or $65,000 for the period July 1, 2015, to June 30, 2016. This means an additional cost of $32,500 for this year's budget.
Also, the 2015 WSIB (Workplace Safety and Insurance Board) rates for local government services have increased by 29 per cent due to expanded coverage for firefighters. This means an additional $32,000.

Baumann said those two changes resulted in a 0.66-per-cent tax-rate increase which would have brought the required tax-rate increase to 9.21 per cent. She noted that staff has reviewed the wages/benefits and through various revisions, has been able to absorb $40,000 of this impact, so the tax-rate impact is only an additional 0.25 per cent.

In addition, there are costs associated with council's Feb. 18 decision to demolish the airport house by June 30 of this year. These costs include dealing with the asbestos, reconfiguring the water service to the airport terminal, and the demolition itself - for a total estimate of $20,000. This results in an additional 0.2 per cent on the tax rate.

Therefore, said Baumann, the proposed tax-rate increase is set at nine per cent, or an extra $117 for the average household.

Staff presented 15 possible budget cuts which would save $158,000 and drop the tax-rate increase by 1.61 per cent.

Council okayed eliminating the $12,000 for Team Kincardine to implement the Integrated Community Sustainability Plan (ICSP).
Deputy mayor Jacqueline Faubert objected, saying the municipality spent numerous hours and about $50,000 on that plan, and it would be frustrating to see it not completed.

Councillor Maureen Couture said the plan is not helping the municipality in any way, shape or form. "I see nothing productive from this program, except people attending meetings," she said.
"I think it's ironic that our sustainability plan is not sustainable," said Faubert.

Council also decreased the funding for the Environmental Action Group to $300 from $2,000.

The proposal to mothball the Ward 3 landfill site, and save $8,000, was met with opposition by councillor Randy Roppel who said the site is open only Tuesday afternoons and Saturday mornings during the summer. "It's totally unfair; this is for the benefit of the north end of the municipality. We can find savings elsewhere."

Chief administrative officer Murray Clarke said staff struggled to arrive at any items to eliminate. "These are tough decisions when we are affecting services."
He said there is a proposal to expand the opening hours at the Armow landfill site throughout this year. He also noted that the recommendation was to mothball the Ward 3 landfill site not close it.

Council decided to leave the Ward 3 landfill alone for now.
It also decided not to reduce the hours of operation at the Underwood municipal satellite office. Currently, it is open five half-days per week. If reduced to two half-days per week, that would have saved $12,000.

And council refused to cut the $60,000 in physician recruitment funding.
Clarke said this funding is important since the Society of Energy Professionals has purchased two homes in support of this program, and there are funding agreements in place amongst Kincardine, Saugeen Shores and Bruce Power.

"We are looking at replacing two physicians in the near future," said Clarke. "Without attracting any new doctors, we would have 4,200 orphan patients. Business investment in this community is partly based on a vibrant health care system. We already have an investment in the clinic."

He said Huron-Kinloss has agreed to budget $17,000 this year to help offset health care costs, such as the clinic, physician recruitment housing, and so on.

As for fees, council said no to increases in lottery licence fees and establishing special events fees, but was okay with charging a $20 fee for burial permits.
Council refused to eliminate print advertising of its council meetings, cut $2,000 for firefighter uniforms, but left $3,000 for firefighter conferences, training and travel, and $10,850 for the Mysis Rescue Unit.

Council agreed to increase the cost for Summer Day Camp, to $104 per child for a four-day week, and $130 per child for a five-day week, gaining $20,000.
And ice rates were increased in order to gain $5,000. The three-per-cent increase for the 2015-16 season means ice in Tiverton will be $111.25/hour, compared to the Ripley Arena which is increasing to $112/hour.

And finally, council turned down the idea of creating a marriage commissioner program.

The treasurer laid out for future consideration, three other opportunities for savings:

• Airport operations - investigate options to reduce the tax burden in support of a user-pay model - saving $120,000
• Reduce the number of councillors by two - saving $42,000 ($21,000/councillor per year); saving $168,000 with reduction of two councillors over four-year term
• Victoria Park Market - develop a plan to gradually increase the rates up to comparable events, if appropriate

Roppel pointed out that the municipality started the budget process with a surplus from 2014, but is now in a deficit situation because of the $800,000 in legal costs incurred during the now-defunct sale of Bruce Telecom.
"I would have liked to see that cost split between the municipality and Bruce Telecom," he said. "Bruce Telecom has adequate funding to cover its half."

Mayor Anne Eadie asked if the proposed nine-per-cent tax-rate hike includes three-per-cent in amortization or 1.5-per-cent.
Baumann said it includes three-per-cent.
Faubert noted that council had agreed it could not do three-per-cent this year.

So, the tax increase was dropped by 1.5 per cent, leaving a tax-rate hike of 7.08 per cent or $92.04 on the average residential assessment.

"That's not even $10 per month," said Faubert.
"It's actually $7.67 per month," said councillor Laura Haight.

Committee-of-the-whole approved the budget which will come before council for final approval March 11.

The overall budget sets out $23-million for operating expenses, and $3.3-million in capital projects.