2011 Budget

The 2011 Budget proposes essentially the same level of services and operations as were provided in 2010. While there were no major issues, Council did have to contend with a few challenges.

Challenges

The Ontario Provincial Police recently ratified a new multi-year wage agreement.  It has resulted in a higher than normal cost increase for 2011, but should not be an issue for the next two years. The Administrative Assistant at the Fire Department has been made a full-time position to provide, among other things, better efficiencies in financial, statistical and other reporting requirements.

The Tay Valley Township contractor for pound services has discontinued operations, so all municipalities in Lanark County are entering into a formal, multi-year agreement with a different service provider.  The new service is more expensive than in previous years; thus the retrieval fees for dogs and cats from the pound will increase. The increased revenues will not cover the increase in costs.

The Township’s Official Plan must be reviewed, updated and submitted to the province for approval in 2013.  The requirements and inclusions for such plans have greatly changed – the province requires more information regarding pockets of aggregates, wetlands, forest resources, etc., and the plan must include a Natural Heritage Systems Review.  To help cover the anticipated costs, Council has established a reserve into which $10,000 will be placed this year and the following two years.

Debt Repayment

The township office renovation and expansion project was completed last year, and the replacement fire station in Maberly will be completed this spring.  While we were able to apply $1.85 million in grants and reserves towards the total projects costs of $2.8 million, we had to borrow money – $950,000 in total for the two projects. The debt will cost us about $64,000 a year for 25 years.  When the debts are paid off, the $64,000 should annually will be put into reserves for the eventual replacement or major facility renovations.

The $950,000 represents the Township’s total debt.  In the five years 2007 through 2011 Council has approved nearly $9 million in capital infrastructure projects.  The projects have been funded 59% by reserves, 25% by grants, 11% by debt and 5% by development charges.

Looking Ahead

This year’s budget includes a 10-year Capital Plan.  This initiative was developed by Council in 2010 and will be a valuable aid for long-term financial planning purposes.  It is important to identify as far out as is reasonably possible the requirement for infrastructure replacement or renewal and, of equal or greater importance, to determine how it will be paid for.

The 2011 tax requirement of $4,006,000 is $216,000 more than last year, $38,000 of which is covered by growth in our tax base.  The impact of this year’s budget upon taxpayers is 4.7%, or approximately $29 per $150,000 of residential assessment.

To view budget figures in detail, please click on the following reports: