Central Frontenac Draft Budget Sees 2.6% Levy

Craig Bakay | Feb 01, 2023

“Today is just a budget day, nothing is carved in stone,” Central Frontenac Mayor Frances Smith told Council at the special budget meeting Jan. 30.

Coming into the Jan. 19 budget meeting, staff had presented Council with a 7.8 per cent (levy) tax increase or $727,567 more dollars than in 2022.

However, after some pencil sharpening, etc, the numbers had come down for the Jan. 30 meeting to 2.6 per cent or $243,836 more than 2022.

(Editor’s Note: Council was meeting again at press time to discuss potential changes with the final budget to be passed at a future meeting.)

If the Jan. 30 draft budget is accepted as is, the overall tax rate is increasing by 0.9 per cent (the increase was 4.7 per cent back on Jan. 19)

Combined with the County and Educational rates, this equals an increase of $13 (was $62) for every $100,000 of assessment dollars. The average property value in Central Frontenac is $164,447, the median property assessed value is $148,000.

A 1 per cent levy increase equals $95,000 or an additional $10 for every $100,000 assessment.

However, part of the savings to the taxpayers in 2023 is the result of a draw down from the townships overall reserve funds.

For the 2023 draft budget there would be a net transfer from reserves of $2,727,115 or a net estimated ending balance of $3,464,746, which is 34 per cent of 2022 operating expenses.

“We’re pulling a lot of money from reserves which does not include unfinished projects,” said Treasurer Michael McGovern. “We’re mostly pulling from reserves to do everything in the budget (and) it’s more than I’m comfortable with.”

There are also revenue increases coming in to the township from the federal and provincial governments. A modest increase, $6,000, will be coming in the Canada Community Building Fund (formally the Gas Tax fund) to $275,000 total.

There is a $43,000 increase from the Ontario Municipal Partnership Fund, for a $2,236,200 total, and a $106,000 increase in Ontario Community Infrastructure Funding, for a total of $811,000.

On the other side of the leger, there are over $900,000 in increased costs that can be directly attributed to inflationary pressures. These include increased fixed costs: $173,000 for fuel, $8,500 more for heat/hydro, $38,000 more for insurance, $3,500 more for vehicle repair, $262,000 more for sand/salt, for a total extra cost of $485,000.

Other increased costs in the budget include $169,000 more on contracts, $86,000 for a floodplain mapping study application for Salmon River upper lakes and $170,000 on various other studies, for a total of $425,000.

Salaries and benefits costs also rose but were somewhat mitigated by the elimination of a proposed junior planner position.

McGovern said that spending in each of the four districts is “about the same.”

“We’re trying to find a way to spread it out so that everybody gets a little something,” said Smith.

While there are various and sundry projects proposed, such as a new well at Oso Beach, renovations to the Kennebec rink shack, work on the electrical and water systems at the Olden Rink, and mobile bleachers for the Parham Fairgrounds, as well as the acquisition/replacement of public works and fire vehicles and equipment, two areas seemed to eat up much of the discussion time.

The first was the proposal for a $30,000 recreational needs study. While Coun. Nicki Gowdy and Public Works Manager Tyson Myers didn’t seem too keen on the idea, the Mayor seemed to think there was some need.

“That study might tell us if we really need four little rinks in each district or if we could combine them into two,” she said.

“We need the central rec committee up and running before we need that,” said Gowdy.

“The history of central rec has not been that successful,” said Smith.

The other area that came in for a sizeable discussion was the roads preservation program, of which $890,000 is slated for a portion of Road 38.

Smith suggested that it could be possible to do 5 kilometres of Road 38 and have about $400,000 to do something with parts of smaller roads such as Arden or Henderson Roads.

“What would the odds be of taking a complete year off from 38 and using the full $890,000 on the ball-joint popping, tire-blowing roads that we all drive every day instead of 38 that we cruise down on bicycles or rollerblades?” said Coun. Craig Middleton.

Myers said: “that would go against our pavement preservation strategy.

“It would fit our roads needs study but it’s going to cost $38 million to fix 38 if we don’t get some help.

“We can take a year off from pavement preservation if we need to but it will set us back.

“Road 38 is still good enough to preserve but the risk is that it goes too far and you end up with sections like around Harrowsmith.”