Council’s 0%-ers got their wish Tuesday night, as there will be no blended tax increase this year.
On a night that bogged down as numerous municipal councillors successfully pulled hundreds of thousands of dollars out of reserves for one-time spending, council did manage to cull 1.34% in potential tax increases and balance the budget.
The cuts included $250,000 from funding for trails, a $250,000 bonus of sorts from increased waste disposal revenues, another $213,000 bonus from adjustments to the rate of inflation, $300,000 in labour and consulting costs, $400,000 from human resources decisions made in closed session, and $396,000 from principle interest savings on infrastructure money.
The latter decision, proposed by rookie Chatham Coun. Darrin Canniff, came with council staring at a tax increase of 0.29% — about $7.75 for the average $160,000 home.
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To pull off the zero, Canniff successfully lobbied for the funds to be spent this year, knowing full well the money has to be made up in 2016.
“For this year, we need to go out and send a message. It’s a psychological message. I’d rather see a 0 and a 1.8 than a 0.3 and a 1.5,” he said, referring to potential tax shifts this year and next.
Budget chair Derek Robertson defended council’s decision to hit 0%.
“This was the time for the citizens of Chatham-Kent to get a break,” he said. “I think we delivered on a number of commitments without drastically affecting service.”
East Kent Coun. Steve Pinsonneault began the evening by having $250,000 of the $473,000 that goes into the trails base budget pulled. It was a proposal deferred from the Feb. 5 budget session.
“We’re still putting in money,” he said.
Wallaceburg Coun. Jeff Wesley got more than he bargained for when he sought to pull $154,000 from the recycling reserve to cover the cost of fleet repairs on recycling trucks and to pay for GPS transponders. Gerry Wolting, general manager of corporate services, said revenue coming in at the end of last year was more than expected and administration feels that will continue, so he suggested $250,000 in recycling revenues be poured into the base budget.
Wesley was quick to agree, and council quickly followed suit.
Wolting delivered a second gift a short while later, saying new information on the rate of inflation had come to light, and administration said it now sat at 1.5%. When administration had started budget planning, it was at 2.4%, a number that dropped to 2.1% in late January.
Canniff put forward a motion that sent council into closed session briefly, as he proposed pulling $300,000 from the budget through attrition of staff and/or reduction in the use of consultants.
The motion passed.
“When you have 50% of your costs in payroll, you have to adjust,” he said. “We are asking administration to be creative and look at better ways to do things.”
Canniff said it’s a matter of re-evaluation of jobs when there is an opening.
As council stared at a 0.59% potential increase, South Kent Coun. Trevor Thompson brought back his opening night motion to pull $400,000 from human resources spending, which was discussed in a January closed session, and make up the difference through a reduction in the proposed increase in infrastructure funding. He willingly deferred the motion to let councillors look at other savings options.
The only problem is they started spending money, hundreds of thousands of dollars in one-time money from reserves to fund such things as brownfield studies, an economic development office in China, resident attraction support, and setting aside money to pave the Memorial Arena parking lot this year.
Thompson’s motion eventually resurfaced, but council accepted only the human resources element.
West Kent Coun. Bryon Fluker then proposed adopting the budget with a 0.29% tax increase, but Wesley said it was just too much.
“We can say how little it is to the average homeowner, but they look at all the increases they’ve had year over year over year. A certain feeling comes with 0%,” he said, adding it’s an “emotional and positive” feeling for residents.
Thompson agreed.
“The zero does send a message that we are serious about the taxpayer dollars,” he said.
Kudos for getting to zero! However, please tell me we're NOT putting money into an economic development office in CHINA as mentioned in the article! !!!!
About $35,000 for an office and to staff it … for now.