Taxes June 6, 2001
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Central Frontenac council sets property tax increase at 8.9%
By David BrisonCentral Frontenac councillors have known that there would be a property tax increase since they first considered a preliminary budget at their April 30 meeting. Initially it looked as if the increase could be close to 20%. Then after further painstaking deliberations, council predicted it would be at 9.9%. Finally, council succeeded in paring the increase down to 8.9%.
The overall picture is that revenues are down and expenditures up. Revenues are down because of a reduction in the provinces Community Reinvestment Fund, which was set up to help with the costs of amalgamation, and is now being scaled down by the province. Also, there has been a decrease in overall assessed values of properties. Expenditures are up because the costs of downloaded services such as policing and roads have gone up.
Council has brought in money from reserves to reduce the increase in the tax rate from 19.2% to 8.9%. The total amount of money taken from reserves is around $450,000, and this is the second year that council has drawn funds from the reserves. If revenues continue to go down and expenditures increase, council will in the next budget have to again draw another $450,000 from reserves, and in addition fund next years shortfall further depleting reserves.
Mayor Bill MacDonald commented on the strain that raising taxes causes councillors. Everybody knows that an increase of 8.9% is a burden on many taxpayers. None of us want to see higher taxes, and we know that even with this increase there will have to be a cut in some services. It is hard on everybody, but I think we worked well as a council and were able to come in with the best possible budget under the circumstances.
Roads issues considered
Bill Snyder brought forth two motions that dealt with road issues. In the first one, he asked that the widening of 1.1 km of the Oak Flats Road, which was not in the new 2001 roads budget, be considered in the 2002 budget next year. Council added to the motion that all projects be considered -- effectively watering down the motion. Snyder asked for a recorded vote and all councillors voted for the reconstituted motion. In his second motion, Snyder asked that a section of the Wagerville Road at the Cronk Road intersection, which heaves badly each spring, be repaired with surplus funds (if there is a surplus). Council defeated this motion by a 2-7 margin (Snyder and Price voted for the motion). In effect, council thought again that all projects should be considered if there is a surplus.
The 2001 budget for roads construction includes the following items which council thought were priorities for road construction. A $305,000 Roads Department line item provides for an additional coat of surface treatment of the areas of the Henderson Road and the Oak Flats Road completed in 2000; pulverizing a further section of the Henderson Harlowe Road; ditching, realignment and guide rail on Echo Lake Road; pulverizing and resurfacing Brock Road in Mountain Grove; gravel resurfacing of the Wilkinson road; and repair to the Ardoch Road.
Reconstruction of the approved sections of Road #38 totals over $2 million and is being funded by the reserves set aside when the province transferred this road. Council also authorized a $150,000 expenditure for the resurfacing of Road #509, which will also be taken from the reserve fund.
