Proposed tax hike sparks arena debate

Obscenely high and unsustainable policing costs. OPP bills are destroying communities its officers are supposed to protect. Apparent self-interest is cloaked in the guise of public safety needs. Where is the political outrage while OPP costs continue to climb? Who is going to bring policing costs in this province under control?

Proposed tax hike sparks arena debate

Postby Thomas » Sat Apr 18, 2015 2:53 am

Huron East's draft 2015 budget proposes a 5.4 per cent tax increase and roughly $560,000 in spending cuts, as the municipality seeks to offset a reduction in provincial funding and growing policing costs.

Treasurer Paula Michiels presented the preliminary $13.35 million spending blueprint to Huron East council at its meeting on Tuesday, where it was met immediately with concerns from members about the long-term sustainability of the municipality's finances, namely in regards to its three recreation centres.

According to Michiels, Huron East stands to lose about $340,000 in revenue from the Ontario Municipal Partnership Fund this year and faces a roughly $82,000 increase in the amount charged by the Ontario Provincial Police for its services.

She said the proposed tax hike would provide an additional $329,038 in revenue that should cover most of the funding shortfall, though the policing increase will have to be “absorbed” within the budget.

If passed, the tax increase would work out to a $138 to $215 increase for homeowners with the average residential assessment of $166,799.

As in previous meetings, council members raised concerns with the financial support being provided to the municipality's three recreation centres, all of which are projecting operating deficits in the draft budget.

The Seaforth arena is forecasting the largest deficit at just under $39,000, while the Brussels Arena expects to come in roughly $14,000 over budget.

Meanwhile, the Vanastra Recreation Centre owes its anticipated $25,359 operating deficit to planned repairs to a section of its roof located above the fitness room and men's changing room.

Michiels said council would need to increase the municipal levy by a further two per cent - or $70,000 - to cover Vanastra's deficit and provide an equitable funding hike to the other facilities.

Without additional financial support, the municipality projects the accumulated debt for the recreation centres to climb to roughly $310,000 in 2015. Once again, the Seaforth arena is the largest contributor, with its accumulated debt estimated to grow to just shy of $160,000.

"What needs to be addressed later in 2015 is how we're going to address the accumulated deficits," Michiels explained to council.

Mayor Bernie MacLellan asked why the Seaforth arena was continuing to record such hefty deficits after he claims the municipality paid off roughly $100,000 of the facility's debt about three to four years ago.

After the payment, he said the arena committee informed the municipality that they would now be able to "toe the line" and balance their books.
"They haven't done it yet," MacLellan said.

While several councillors had floated ideas for boosting arena revenue at earlier meetings, Coun. Ray Chartrand expressed doubt that the facilities would ever be able to significantly improve their fiscal standing with usage continuing to fall.

"The associated, uncontrollable costs of the arena, like hydro, wages and stuff like that...they keep on going up. But the ice time and usage keeps on going down," he said. "It doesn't seem that it's going to get better. And I don't think it'll get better in the future."

With debate on whether there exists a need for the municipality to have two arenas intensifying in recent months, Chartrand said it might be time to form a committee of "non-biased" members and an outside consultant to complete a full evaluation of what facility should be closed if that was the path council opted for.

The committee would then consider a range of factors such as the state of the building, the on-site equipment and location, he said.

As part of the belt-tightening to offset the OPP hike and other mounting expenses, the proposed budget defers several planned road projects to 2016, including the $485,000 reconstruction of a section of Seaforth's Sills Street that the municipality’s own road asset inventory risk report warns has a “high probability of failure and a very high consequence of failure."

It also delays reconstruction work on parts of Church and Franklin streets, both located in Seaforth, which are also included in the highest age-based risk category in the asset report. The conditions on those roadways, however, are "not as bad as those on Sills Street," Michiels said.

As well, administration instructed all municipal departments and facilities to submit budgets for 2015 at least year's funding levels.

The draft budget actually proposes an 11 per cent municipal levy hike, which averages out to a 5.4 per cent total when combined with the already approved 2.3 per cent and one per cent increases to the county and education levies respectively.

Council will review and debate the budget at its next meetings.

http://www.orilliapacket.com/2015/04/16 ... r-solution
Thomas, Administrator

User avatar
Thomas
Site Admin
 
Posts: 2562
Joined: Sun Mar 25, 2012 5:18 pm
Location: Canada

Return to Unsustainable Policing Costs

Who is online

Users browsing this forum: No registered users and 22 guests

cron