Dysart Council Accept First 2010 Draft Budget

This week the Dysart et al Council sat down for their first serious review of the municipality’s draft 2010 budget. On first blush it appears that once a few small pieces of the financial pie are added, Council will likely adopt a two percent increase on the Municipal levy. CAO Tammy McKelvey advised Council that the budget being presented represented the total 2009 levy, plus $45,350 in growth related taxes and a two percent increase representing an additional $90,725. Despite an anticipated surplus of approximately $200,000 for the 2009 year end, the 2010 budget projected a revenue shortfall of $55,855 which will come out of
reserves. Despite efforts by staff to offer a tight and comprehensive document, it is still difficult at this point to determine exactly what the full impact will be on Dysart residents, as to date neither the County nor provincial tax rates are known. McKelvey reported that the County is anticipating a substantial increase given the tremendous reduction in provincial grants, which is bound to create a ripple effect.
As the department with the largest impact, Roads Superintendent Brian Nicholson was up first with a budget that reflected a 5.57 percent increase over last year. Nicholson identified roads that are in the worst condition and greatest need of repair which included 4.5 kilometres at the north end of Kennisis Road from the end of County Road 7 to Watts Road at an estimated cost of $208,000. In addition 5.8 kilometres at both the north and south ends of Watts Road have
been included in the budget at a cost of approximately $357,000. Nicholson noted that construction costs had been reduced on the Watts Road project by $80,000 in an effort to reduce the gap between the 2009 and 2010 budgets and wasn’t shy to say that an increase to his budget could be well used for repairs on Tattersol
and Sunnyside Roads as areas identified for 2010 in the roads needs study.
Slurry seal work totalling $151,500 is planned for the Old Donald Road, Burkes Road, Parish Line, Redkenn Drive, Dudley Road and Trappers Trail. Nicholson said that to further reduce the financial burden he had dropped some of the smaller
less travelled roads from this year’s work. Capital expenditures for his department totalling just over $270,500 include pre-approved purchases of a one ton truck
with plow and sander and a snow blower as well a spray patcher, water tank and pump, Reeve Murray Fearrey commented that the increase in Nicholson’s budget was reasonable given the increased cost of wages and benefits. He noted that there will likely be little assistance from either the federal or provincial government
this year, but said if there is, the municipality would be ready.
Nicholson was given authorization to proceed with tender preparations.
When tackling the sewer budget, Fearrey said, “This is our biggest problem. We have a system that is over 35 years old. The expansion, now almost 20 years old went ahead on the premise of development that didn’t happen and we have an aging facility that needs more maintenance with little revenue at the other end
to offset the costs.” Fearrey said that better cooperative relationships would have to be established if more housing projects are to proceed or the cost of sewers will become prohibitive. While a public meeting will be required before they become
official, Council agreed to a $25 increase to the present user fees in order to increase revenues and reduce the existing shortfall. McKelvey cautioned that even with the increase there would still be a shortfall in the sewage budget. During discussions on general government costs, McKelvey noted a $60,000 loss in investment income because of the present economy, something she said is also causing ever increasing tax arrears. McKelvey also noted that the municipality would
have to purchase new financial software, a server and a number of computers. She also noted increased costs for consulting services which, as well as the costs of audit and legal fees, now include a legislated health and safety audit. McKelvey recommended an increase in rental fees for municipal facilities which Council accepted. During a review of the waste management budget, McKelvey reported that considerable savings had been realized in waste disposal, given substantial increases in subsidies for hazardous waste, e-waste and the new tire program. These have contributed considerably to the healthy surplus from 2009.
Fearrey commented that for some time the municipality had neglected to increase fees for both the cemeteries and for planning. “Legislation requires planning to be self sustaining,” he said. McKelvey agreed that in Dysart these fees are dramatically
lower than other municipalities, but said there was a process associated with any increase requiring public input that could generate challenges, particularly with the cemetery fees. Council’s discussion gave a strong indication that developers
can definitely look for higher planning fees to be implemented in the near future. Council recognized the considerable saving realized by having a registered planner on staff, but discussed the existing fee structure in some detail. It was felt that they could easily justify a substantial increase in fees given the costs
of advertising and staff inspections alone. “The whole planning structure should be looked into,” Fearrey said, commenting again that the municipality was falling way
behind and the increased cost of reviewing development proposals should not be borne by tax payers. During a discussion on parks, Fearrey suggested considering
using dogs for goose control as it has proven a successful deterrent in Minden. Council also agreed to consider the best approach to addressing drainage concerns in Head Lake Park. Council reviewed capital items under consideration for the
arena which totalled almost $70,000, not including the cost of a new arena mural of Matt Duchene. McKelvey noted that staff resources would be used to the greatest extent possible to reduce these costs; but at the same time she also provided a report on capital improvements that will be needed at the arena over the
next few years that totalled a whopping $680,000. McKelvey stressed that the arena is over 40 years old and an aging facility requiring a number of new components including replacing the floor and arena boards. Every effort will be made to make these improvements using whatever government funding becomes
available over time. While discussing the availability of outside funding, Council
addressed the need to identify funding for both the museum and skateboard park either in readiness for grant money or in preparation for the municipality to do necessary upgrades/ improvements itself. Council also looked favourably on a request from the Glebe Park Committee to develop a forest management plan for the park. The exact costs of policing for the year are as yet unknown, but McKelvey commented that she has received information that this year the costs will likely exceed a million dollars. The discussion then turned to municipal grants and donations, something that often generates as much discussion as the rest
of the budget combined, particularly when balancing budget restrictions against requests for much needed funds by worthy groups and organizations.
The $50,000 allocation to the Rails End Gallery was readily accepted as an ongoing commitment. Other allocations agreed to at this point include funds for Community Care, Point in Time and U-Links. Fearrey later said, “This is virtually a stand pat budget given the current economy. Having said that, there will be certain adjustments to planning and other services that don’t apply to the general tax payer but need to be brought in line with the actual costs of operation.”