Sep 15, 2016


Budget confusion but treasurer gets direction for an increase

South Frontenac Treasurer Louise Fragnito initiated Council into the 2017 budget process with a report outlining the direction that staff would like to take in regard to the target numbers.

Because South Frontenac is committed to long-term budgeting, the 2017 numbers will set in motion spending over a long period, up to 25 years.

In order to maintain and even increase the level of reserve funds over the next 10 years and continue the aggressive road rehabilitation and upgrade program that the township has undertaken, Fragnito asked that the target of a 2% increase in the impact of the budget on the average ratepayer be increased to 2.2% this year.

The change reflects a proposal from the Public Works department for an expensive upgrade to the Sunbury Road, from a surface-treated (tar and chip) road to an asphalt road with a paved shoulder. The upgrade would reflect the amount of use the road receives on a daily basis, and its role as a detour from Highway 401 from time to time. A similar proposal for the Westport Road will be considered for 2018.

“The use of these roads has changed since the original long-term roads plan was developed” said Public Works Manager Mark Segsworth, who added that the township has been attempting for a number of years to obtain a grant to upgrade the Sunbury Road, without success. The proposal, as it currently stands, would be financed through a loan of $11 million, to be paid off over 20 years, with interest pegged at about 2.5%

The budget direction that Fragnito was seeking included annual loan payments to cover the additional projects. The direction, which projects budget increases over 25 years, also included a host of projects, including building a new $2.25 million fire hall every three years starting in 2020 until all the township fire halls are replaced.

Council had a lot to say about the proposals.

“I need more information about how all these numbers fit together,” said Councilor Alan Revill. “We see projections over a long period of time and we will have to then focus on 2017.”

Deputy Mayor Ross Sutherland said he was ok with the 2.2% proposal, but wanted to use reserves to finance the new roads projects instead of bank loans.

While other members of Council also expressed a need for more explanation of the numbers, Mayor Vandewal knew what he wanted to see: smaller numbers and less spending.

“To me this is a wish list: new fire halls, road upgrades, and on and on. We aren't going to do all this. We need to look at things we can afford, not the warm and fuzzy things that we would like to see. Even if you say this is just direction and we will make decisions as we go along, once it is down on paper it will be hard to stop, so I would like to slow down,” he said.

Vandewal also said he campaigned on 2% increases, so he wants to stick with that.

Nonetheless the majority of Council indicated comfort with Fragnito's suggested 2.2% increase.

[Editor's note – Treasurer Fragnito uses a calculation that includes projected increases in tax assessment due to new construction and overall growth as well as phased-in assessment for existing properties when calculating a 2% or 2.2% increase in the impact of the budget on the average property in the township.

In our reporting of budgets at the Frontenac News, we look only at the total amount of money the township levies to ratepayers. For example, the levy increase we reported for South Frontenac in 2016 was 6.66%, an increase from $15.5 million in 2015 to $16.5 million in 2016. Looking back in time, the total levy in 2010 was $10.3 million, so it has therefore gone up by 60% so far this decade.

Looking forward, South Frontenac is on track to increase the levy to about $30 million per year by 2025.]

Application for funding for The Point

Council accepted a Public Works proposal to apply for a $77,500 matching grant from the Ontario 150 fund. If the application is successful, new fully accessible washrooms, a new sports pad, playground equipment, new fencing and a paved walkway will be put in. The township's share of the cost will come from Parkland Reserve funds.

While indicating that she will vote in favour of the proposal, Councilor Pat Barr, her voice betraying underlying frustration with the amount of attention the Point Park has received from Council in recent years, said, “I will vote for this as long as it is the last time I have to hear a request for money to fix up The Point for the rest of my life.”

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