Tweaking

Budget meetings yield few savings; property taxpayers brace for massive increase

The budget meeting was scheduled to span three days. But in the early going of day two—Thursday—council had run out of things to talk about. Some complained that it hadn’t been explained clearly that the purpose of the sessions was to table proposed changes to the budget—gathered at a series of town hall meetings in recent weeks. Others were ready to vote on a massive tax hike (a 13.3 per cent hike on the 2012 tax levy)—convinced there wasn’t much more to be cut—and unwilling to consider major cuts in service. Keith MacDonald, councillor for Hallowell, even proposed adding $300,000 more to the Public Works budget—a move that had it succeeded, would have pushed the budget toward 15 per cent increase. Council rejected Mac- Donald’s proposal.

Still others wanted to propose significant cuts to the organization—but were told council would have to move behind closed doors to entertain this type of discussion. That closed meeting happened on Thursday.

Day one resulted in just a slight trimming— cutting grants to Glenview Cemetery, Taste the County, the Chamber of Tourism and Commerce, the Regent Theatre and the County Community Foundation by about 20 per cent.

Council also pruned a $92,000 repair to the Picton Fire Hall to just $32,000. A fire master plan is currently in the final stages of development. It will call for a major reorganization of the County’s fire service—including the closure of some fire halls and the disposal of equipment.

The Prince Edward County Arts Council also had its grant request reduced. Festival Players was hardest hit—its $8,500 request was rejected in its entirety.

Then council sat silently as it learned that both its land ambulance (EMS) budget and Health Unit budget were looking for higherthan- expected increases. Both services are shared with neighbouring municipalities. Rather than an expected two per cent increase, the EMS budget will rise by 3.7 per cent—pushing up the County’s budget by $39,398. It was approved without discussion.

The County’s share of the cost the Hastings Prince Edward Health Unit is jumping 5.2 per cent even as the Health Unit’s overall budget will grow by just 1.9 per cent. The reason is that this organization calculates its cost allocation on a per capita basis. And while the County’s population decreased last year, it fell slower than other municipalities such as Quinte West. Therefore the County must fund a greater share of the pie.

This change adds $15,456 to the 2012 budget.

Neither increase merited a comment by council. Council also agreed to double the amount it charges for parkland development to $1,500 when it consents to the creation of a new lot.

DEAD END
But by day two Council had run through its agenda and still hadn’t made a meaningful dent in the budget—now sitting at a 13.3 per cent increase to the tax levy.

Mayor Peter Mertens advised council it had a couple of choices—go home and do some more work on developing real budget cuts, or vote to approve the current increase. It was a discussion made more complicated by differing views on how to express the proposed tax increase.

Staff prefer to show, and discuss, the tax increase as expressed as an average assessment ($240,752 based on 2012 MPAC valuation increases), net of new tax revenue from new homes, additions and development.

But as Picton Councillor Bev Campbell observed, this calculation masks the real increase in the County’s budget. She argued, as this newspaper has, that the true measure of the County’s management of its finances is the tax levy—that is the amount the municipality spends minus the amount of money it takes in. Campbell urged her fellow council colleagues to continue to work at reducing the budget.

“I believe we will have to go with a significant tax increase this year,” said Campbell, “but we need to do more homework.

“I am focused, however, on the tax levy, the average is misleading. I think it is wrong to use that metric. And at 13.3 per cent increase—it is still pretty rich.”

Wellington Councillor Jim Dunlop urged his colleagues to continue to work at the budget.

“To even consider this size of increase means we’re not doing our job,” said Dunlop. “We haven’t really done anything.”

Yet some wanted the budget as it stood put to a vote. Sophiasburgh Councillor Kevin Gale led the way requesting a vote on a “9.7 per cent” increase—adopting the MPACinflated average net of growth percentage that Campbell described as misleading.

“Last year we chose a 1.3 per cent increase,” said Gale. “We dug ourselves a hole. We have roads and trucks falling apart. I don’t want to pay more taxes—but we have to turn this ship around.”

He also reminded his colleagues that in past budget deliberations council sometimes increased the budget rather than cut it when they met for second and third time.

Bloomfield Councillor Barry Turpin wasn’t willing to abandon efforts to whittle down the budget total—but neither was he expecting significant cuts. He reasoned that about five per cent of the increase in 2012 was due to decisions made last year.

“That five per cent shouldn’t even be considered,” said Turpin. “There is a few things we can juggle, but there’s not a lot more we can do.”

Mayor Peter Mertens, too, seemed to be hinting that a large tax increase was inevitable.

“We have found serious problems,” said “We have to deal with some issues—so that we deal with them once and move past.”

Still others wanted to get down to the hard work of going through the budget.

“Last year we drilled down every page,” said Alec Lunn, councillor for Hillier. “Let’s get back to that.”

Fortunately it seems Lunn may yet see his wish granted.