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Essa aiming to hold taxes to one per cent hike

BY Matthew Talbot, Staff January 26, 2010 12:01

ESSA TWP. - Essa councillors are aiming for a one per cent tax increase, but it's going to cost them.

At a budget working session Jan. 20, several cuts to capital projects were being considered to keep taxes at a one-per-cent increase.

Essa treasurer Julie Barrett said the town needs to cut $800,000 to achieve a neutral budget and by the end of the five-hour working session council managed to identify $600,000 in cuts.

Some projects at the Angus arena could be cut including a $10,000 digital sign and $14,800 in ice-maintenance equipment.

However, Essa Mayor David Guergis worried council was getting to the "nitty-gritty" too soon.

"This could all be irrelevant if the Angus arena doesn't go ahead this year. We seem to be down at the nitty-gritty and pulling out the small things that may be of benefit to the community," he said.

Among other projects being considered for the chopping block are $10,000 for a summer student; $8,000 for a digital sign at the Thornton Lions Hall; and the $490,700 capital project on the 10th Line from the 5th Sideroad to the 25th Sideroad.

A "sprucing up" of the township's office is also being reconsidered.

Barrett said the town could reduce a renovations budget from $10,000 to $5,000.

"I don't think you need to spend $10,000 on sprucing up the office," Barrett said.

However, Coun. Sandie Macdonald said there are some projects at the office that are health and safety issues and need to be addressed.

Macdonald added, "We should have some pride in this building. It's outdated and it should be looked at."

Council directed Barrett to come back with one-per-cent increase at the next budget meeting on Feb. 17.

By reducing their levy by just over $600,000, Barrett said, the town will have a one-per-cent tax increase while allowing the policing contract costs to be placed on the levy and not paid for by reserve.

Barrett suggested including the $200,000 policing contract increase on the budget this year to avoid a "significant" change further down the road.

Guergis asked about using the reserve this year to offset the police cost increase, but Barrett said the town might need that reserve for a year with a larger increase.

Barrett said the town's growth and higher property assessments offset the police service increase.

"We can tax the people the same tax rate, but assessment is absorbing the change in the levy," she said.

The township, along with New Tecumseth and Adjala-Tosorontio, renewed its contract with Nottawasaga OPP in 2007. The contract came into effect in 2008 and then provided provisions for the hiring of three additional officers, and one sergeant. Additional officers are hired annually until the contract ends in 2012.

The budget also includes a one-per-cent cost-of-living salary increase for town staff.

A final budget meeting is expected to be held on March 3.

Water/Sewer

Barrett said revenues at the water treatment plant are down after a wet year last year, and she suggested council vote to keep the same rates to see how this year pans out.

"It's not a great economy right now. People don't have extra money to put out," she said. "But at the end of 2010 we may need to look at increasing our meter water rate."

Growth occurring in the municipality could balance out water costs, she added.

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