South Frontenac Council 2020 budget - budget levy to hit $20 million

Nov 18, 2019

South Frontenac Council met last week in committee of the whole to pour over the draft 2020 township budget.

The base budget that they received from the treasury department called for an increase in local taxation of just over $500,000, 2.54%.

That increase is not arbitrary. South Frontenac Council set a target of a 2% increase in what the township treasurer Louise Fragnito calls the “taxpayer impact” of the budget.

Fragnito looks at the total value of property assessment in the township when setting her budget target.

She considers two kinds of assessment growth, one that is based on inflationary increases in property and an another that is due to new construction (new homes and renovations to existing homes). The added revenue that the township receives as the result of new construction is considered an increase due to growth and it is used to help calculate the “taxpayer impact” of the budget.

When the increase due to growth is taken into account, the impact of the 2020 budget is a 2% increase in taxation on the average valued house in the township.

The average valued house in South Frontenac will have an assessed value of $272,538 in 2020. Township taxes on the average property will increase by $40 if the draft budget were accepted by council with nothing was added to it.

Before looking in detail at the budget, council heard brief outlines from Chief Administrative Officer (CAO) Neil Carbone and the department heads overseeing four services areas (Corporate, Public Works, Development, and Fire and Emergency) about their plans for the coming year or two.

It is the first budget since Carbone came to the township this past summer.

He described the budget process as the most important strategic planning tool and policy document for the township. He said that the 2020 budget process has been focused on maintaining “council’s tax target rate and long-term financial plan while addressing emerging challenges and opportunities”.

Starting next year, the strategic plan the township is working on as well as a recreation master plan, a fire station location study, a service delivery review and a climate change adaption and mitigation plan, will all have an impact on the budgeting exercise.

Manager for Public Works, Mark Segsworth said that the township continues to grow and there are increased expectations on the part of the public, which, “for the most part, we have managed to keep up with.”

Councilor Ray Leonard said that the “expectations of people who move into the township are sometimes out of line with what we can, or should be, providing. We need to be wary of that.”

Recreation facilities and programming are also a growth area for the township, Segsworth added.

Fire Chief Darcy Knott said that the “cultural shift” in the fire department, from four semi-autonomous fire crews into a single service, is a work in progress that is proceeding well. The department completed a successful recruitment drive this year and 25 new recruits have been trained and are ready to join the department.

He also said, in terms of capital expenses, the department is looking at acquiring first response vehicles, 4-wheel drive pickup trucks, to respond to medical calls, which are the most common call-outs for the department.

“Pumper trucks are expensive and can remain in service for 25 years but the cost of maintenance to keep them that long increases over time,” he said. I myself if we need to use a $750,000 pumper for a medical call. We could purchase a whole fleet of heavy-duty pickup trucks for the cost of a single pumper.”

Director of Planning Services Claire Dodds talked about the challenge her department is facing to respond to new tighter timelines for planning approvals that the provincial government has mandated in an effort to bring more housing on stram more quickly. She said that better use of technology could free up planning staff to make better use of their skills, and also talked about more integration between the planning and building departments. She will also be working on a comprehensive growth plan for the township with a 20-year window.

In discussing the budget, a number of items caught the attention of council.

There was concern expressed about the unanswered questions regarding a proposal to build a Stock-sport court/multi use pad at Harrowsmith Centennial Park, but since funding for the project would come from reserves the money was left in the budget. The project was not approved by Council by at this time, but neither was it halted in its tracks.

New hires in the planning, public works and recreation departments are included as add-ons to the budget, and will require further discussion before getting final approval.

One member of council questioned the necessity of developing a South Frontenac brand, when there is already a county brand.

“The branding initiative is fundamental to all of the other initiatives we are undertaking. Staff feel strongly about this,” said Carbone.

The budget allocates $45,000, taken from reserve funds for the branding initative.

A number of alterations were made to some of the budget numbers as well as clarifications about how some spending will roll out.

In the end, Treasurer Fragnito said she will act on council’s direction, and will also wait to receive some further information about funding from provincial sources before bringing a final budget forward in December, at which time council will have a final opportunity to make changes.

The township budget makes up only part of the municipal tax bill that ratepayers receive. Education taxes and Frontenac County taxes are also included. The education rate for 2020 is still pending as is the county rate, although the Frontenac County Council is slated to include a 5% tax increase after discussions in October. Like South Frontenac, the county budget will not be finalized until December.