Central Frontenac Council

Jeff Green | Mar 11, 2015

Central Frontenac Council bumps up reserves. Levy up by 3.4% ($218,000)

Treasurer Michael McGovern followed the dictates of Council in preparing a budget that kept tax increases to a bare minimum even as the township was facing a $151,000 increase in policing costs this year.

In order to accomplish this, a number of road projects that had been identified as priorities were left off the budget, including ones on the Arden, Zealand, and Henderson Roads, and a smaller project on Medical Centre Road.

McGovern recommended, in presenting the budget a final time this week, that at least one of those projects be added.

Instead, Council heeded the advice he had given them at an earlier meeting, when he pointed out that at the end of 2015 the township was slated to have $820,000 in reserve funds, which represents 8.7% of operating expenses for one year. The rule of thumb for municipalities, according to the township's auditors, KPMG Incorporated, is to have 20% of one year's operating expenses in reserves. In Central Frontenac's case, that would be about $1.5 million.

Councilor Bill MacDonald said, “I think that instead of picking one road project to do, we should put at least some more money into reserves. I don't like the idea that we are going to let them drop that low. If anything unexpected happens, we will be in trouble. We should put at least 1%, $63,500 towards reserves.

Councilors Tom Dewey and Victor Heese agreed.

“I hate to see taxes go up, because people are hurting, but I agree with what has been said and I would support the extra 1%,” said Councilor Brent Cameron.

The increase of 3.4% in local taxation translates into about $29 in increases for every $100,000 of property assessment, according to Michael McGovern.

The township tax rate will be combined with the county rate, which is going up by an almost identical amount, as well as the education rate, which will likely be the same as last year. In the end, ratepayers will see an average increase of about 3%.

The budget is slated for approval at the next meeting of Council, on March 24.

In addition to their own discussion of the budget, council heard from former Councilor Jeff Matson, who appeared as a delegation before Council.

Matson did not challenge the global numbers in the budget, but rather wondered why the township was purchasing a new truck, at a cost of over $200,000, rather than doing more road work.

He said that township equipment sits idle too much of the time, which costs money, and it would be preferable to keep less equipment in the fleet and use it more often.

Mayor Smith said that Matson's comments would be brought forward to the new public works manager, who would be able to recommend that council make changes to budget line items during the year as long as the global numbers don't change (the hiring of a new CAO/public works manager took place later in the meeting)

Hinchinbrooke School too rich for the township

Council approved a motion to send notification to the Limestone District School Board that they are no longer interested in purchasing the former Hinchinbrooke School property and building, which the board is offering for sale at a price of over $200,000.

“It would be nice to have but we can't afford the cost,” said Mayor Smith.

The property may come available again, if none of the institutions on the list of preferred buyers takes the board up on its offer of sale. In that case the price might be significantly lower.

In order for the building to be made useable for township purposes, specifically as a recreation centre proposed by a group of local residents, it would require an extensive retrofit on top of the purchase price.

Early indications for a good construction year

Even in a record cold February, three building permits for new homes were taken out, putting the township's construction value for the first two months of 2015 at $823,000, four times the total for the first two months last year and twice the total for the first two months of 2013. Chief Building Official Jeremy Neven cautioned council that the totals for one or two months are not a real indication of the trends for a year.

“We had a good month in February, because permits for three new houses were taken out, but we could have a weaker month in March of April, and the year will not look nearly as strong,” he said, “but it is encouraging.”

Tenders for hall maintenance all go to one company

A. Kehoe Property Maintenance received the contracts of custodial service for the Piccadilly, Kennebec, Olden, and Oso halls ($14,444, $18,444, $16,994, and $37,554 per year respectively) as well as the contract for services at the township garage for $8,444. BEE Sanitation was the only other company to receive a contract, $25,225 per year for garbage collection at all township facilities. The contracts are for three years, and will be re-tendered at that time.

Before Council accepted the recommendation from Jeremy Nevens, Councilor Jamie Riddell asked if it might be better to bring the work “in-house to a township employee.”

“We thought about that, and it might be the right thing to do, but it will take quite a bit of time to determine that. It is not only salaries but a lot of other factors that need to be determined,” said Neven.

Before a vote was taken to accept the tenders, Jeff Donelly appeared before Council, representing his wife's company, Melissa Johnson cleaners, who hold three of the contracts that are running out at the end of the month.

He said that her bid was based on the actual cost of delivering the service, and Council should consider that before accepting the lowest bid.

“It takes a lot of commitment to do these jobs,” he said.

Council also wondered in A. Kehoe had the staff to handle all five contracts and Neven said the company had indicated they had enough people in place.

What's next? Reel Drive?

The township accepted an application to give the name Jigg's Way to a private lane off of Brock Road